restatments on the decline_CFO_march 2010 (3)

restatments on the decline_CFO_march 2010 (3) -...

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Print this article | Return to Article | Return to CFO.com Restatements on the Decline Sarbox and a more tolerant SEC may be why companies are restating financial results less frequently, says a new report. Alix Stuart , CFO.com | US March 4, 2010 The number of financial restatements fell in 2009 for the third year in a row, according to a new report. The report, by research firm Audit Analytics, posits that the Sarbanes-Oxley Act and the Securities and Exchange Commission are behind the decline. Overall, 630 companies filed 674 restatements last year, says the report, representing a 27% decline from 2008. The number of restatements peaked in 2006, when 1,564 companies filed 1,795 restatements (see chart below). The severity of restatements also declined, at least for companies listed on major stock exchanges. Last year 232 such companies restated, losing an average of $4.6 million from net income. That was down from 301 companies and $7.2 million in 2008 and 389 companies and $8.6 million in 2007. The change in average size is even more dramatic compared with 2002, when restatements reduced net income by an average of $76.5
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restatments on the decline_CFO_march 2010 (3) -...

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