Daily Concept 2597 - Restatement

 

Daily Concept 2597 - Restatement

 

A Restatement is an act of revising one or more of a company’s previous financial statements to correct an error. Restatements are necessary when it is determined that a previous statement contained a "material" inaccuracy. This can result from accounting mistakes, non-compliance with generally accepted accounting principles (GAAP), fraud, misrepresentation, or a simple clerical error.