Quasi-Reorganization

(redirected from Quasi-Reorganizations)

Quasi-Reorganization

In American accounting, the act of changing a company's records to eliminate a deficit in retained earnings by restating its balance sheet as if it were in bankruptcy. No bankruptcy is actually filed, however, and shareholders must agree to the changes. Quasi-reorganizations are controversial because they do not improve a company's actual state; rather, they simply make its books appear healthier. It is rarely done in practice.

References in periodicals archive ?

The renewed interest in quasi reorganizations that followed a 1988 American Institute of CPAs issues paper, Quasi-Reorganizations, is both reinforced and challenged in the FASB DM.

Quasi-Reorganizations: A Survey of Quasi-Reorganizations Disclosed in Corporate Annual Reports to Shareholders, by Hal G.

Quasi reorganization: fresh or false start

Because the new SOP provides specific guidance for all reorganizations under chapter 11, financial reporting for quasi-reorganizations should not be applied to entities that don't qualify for fresh start reporting when they emerge from reorganization.