We will finish our review of accounting quality by looking at financial restatements in the UK. Over the past few years, the number of companies listed on the London Stock Exchange that have restated their financials has grown. This analysis … Continue reading
Category Archives: Quality of Reporting
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
Redeemable Share Restatement is Bad Timing for WeWork
On Wednesday, December 1, WeWork Inc. [WE] announced they discovered a material weakness in their internal controls and would restate their financial statements to reflect the correct classification of redeemable shares. The company’s share price fell by 5.2% in after-hours … Continue reading
AQRM Red Flags: Changes in Accounting Estimates
The Audit Analytics Accounting Quality + Risk Matrix (AQRM) makes it easy to identify accounting, audit, and governance red flags for public companies. This blog series breaks down the risks associated with specific firm-level events included in the AQRM. Changes in accounting estimates (CAE) … Continue reading
AQRM Red Flags: Financial Reporting
The Audit Analytics Accounting Quality + Risk Matrix (AQRM) makes it easy to identify accounting, audit, and governance red flags for public companies. This blog series breaks down the risks associated with specific firm-level events included in the AQRM. Misstating financial statements is a … Continue reading
SEC Enforcement Actions Reveal Continuing Importance of Accurate Disclosures
The SEC recently announced settled charges with Under Armour [NYSE: UAA] related to certain disclosure failures and making misleading statements to investors. The charges were notable, as the SEC enforcement action alleged that Under Armour engaged in manipulative revenue practices … Continue reading
Reasons for an Amended 10-K: 2020
Form 10-K, an annual report filed by US-based public registrants, is the most comprehensive source of information regarding a company’s financials and its underlying business. These reports are thoroughly scrutinized by investors and other users, which explains why they need … Continue reading