Financial Accounting

Companies Filing Even Fewer Financial Restatements

July 23, 2020, 11:25 PM

Companies issued a total of 85 restatements in 2019 to fix significant financial statements mistakes, the lowest number in 15 years, according to an audit research firm.

The relatively low number is in line with a long-term trend. Except for a small bump in 2018, the number of restatements has steadily declined for 13 years, according to a report by Massachusetts-based Audit Analytics issued Thursday. A parallel trend also continued: more companies last year fixed mistakes using revisions, so-called “little R” restatements,which avoids the 8-K filings and press releases that a restatement—known as a “big R"—would trigger.


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