This October, PwC released a study on the use of non-GAAP metrics (NGMs) in IPO prospectus filings. According to the study, almost 60% of over 400 companies used at least one NGM. Out of those, at least 65% used EBITDA and/or Adjusted … Continue reading
Category Archives: Financial Restatements
US Company Tax Issues On The Rise
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Burger King grabbed headlines a while back when it announced it will be joining with the iconic Canadian chain Tim Hortons and moving its headquarters to the north. Burger King has long been a staple in the American tradition of … Continue reading
Restatements during the Registration Period
On August 15, 2014 Alibaba Holding (BABA) disclosed accounting irregularities in one of its units – recently acquired Alibaba Pictures (formerly known as China Vision Media Group). The announcement did little to affect the company’s valuation. About a month later, on … Continue reading
The Rise of Out of Period Adjustments
Overview of Out of Period Adjustments Audit Standard No. 8 paragraph 3 states that an “auditor must plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatements due to error or … Continue reading
Potential Restatement Costs To Hertz
Back in June, we alerted our readers that the problems faced by Hertz (HTZ) were likely far from over and that the stock still had a significant accounting and regulatory risk. We based our assessment on numerous indicators, including a CFO … Continue reading
Where Does Hertz Go From Here?
On May 13, 2014 Hertz (HTZ) notified the SEC that it wouldn’t be able to file its quarterly report (known as Form 10-Q) on time. In the filing (Form 12b-25, or NT 10-Q) Hertz disclosed that “additional work” was needed in order … Continue reading
Restatements: What’s in a Name?
Would a restatement by any other name still seem as bad? Financial restatements are increasingly leaving out a crucial word in their disclosures: “restatement” – the thing itself. This coincides with the continuing increase in the percentage of revision restatements, i.e., … Continue reading