Adjustments to financial statements – known as out-of-period adjustments – fell to a low of just 114 during 2021. This fall represents a 17% decline from 2020 and is part of a broader fall seen since 2016. Out-of-period adjustments are … Continue reading
Category Archives: Out of Period Adjustments
2020 Out of Period Adjustments: A 10-Year Review
Many times, people overlook out of period adjustments. Adjustments are a method of correcting errors in which prior periods are not revised or restated, and the error is corrected in the current period. However, one is only allowed to use … Continue reading
Error Corrections: A Look at Adjustment and Restatement Trends
At times, errors may arise when issuing financial statements. When such an error is identified, a correction must be made. The scope and nature of these corrections dictate a company’s next steps and may provide useful information into financial reporting … Continue reading
Error Corrections: A Look at Adjustment and Restatement Trends
Errors may arise when issuing financial statements and when such an error is identified, a correction must be made. The scope and nature of these corrections dictate a company’s next steps and may provide useful information into financial reporting trends. … Continue reading
Error Corrections – A Look at Adjustment and Restatement Trends
Accounting corrections are arguably one of the most important metrics in understanding trends in financial reporting. In some of our previous blogs, we discussed the differences between material and immaterial errors, and different regulatory requirements associated with different types of … Continue reading
EBay Reports Material Weakness: Second Control Deficiency in Three Years
Last week on February 6, in its Fiscal 2016 10-K, eBay (EBAY) disclosed a material weakness in its internal controls over financial reporting (“ICFR“). The deficiency related to a failure to properly apply tax accounting and affected the Deferred Tax Asset and Income Tax Benefit … Continue reading
Literature Review: “Qualitative Characteristics of Financial Reporting Errors Deemed Immaterial by Managers”
In this post, we look at a recent paper titled “Qualitative Characteristics of Financial Reporting Errors Deemed Immaterial by Managers” by Preeti Choudhary, Kenneth Merkley, and Katherine Schipper. The authors use Audit Analytics’ databases on restatements and immaterial error corrections to provide an in-depth analysis of the … Continue reading