The number of restatements by US companies has begun to decline, according to new research which also indicated that they may be caused more by basic errors than complex accounting standards.

Restatements fell last year for the first time since 2001, with only 1,237 disclosed; the lowest level in three years, marking a 30% drop from the 1,801 restatements disclosed in 2006, according to a study by Audit Analytics, a US research company.

A separate study released last month, which looked at 3,744 restatements filed between 2003 and 2006, found that more than half were due to 'basic internal company errors' that had nothing to do with the accounting standards themselves.

The new studies fly in the face of claims by the US Securities and Exchange Commission and Treasury Department which have cited restatements as a strong case to simplify accounting standards, Financial Week reported.

One of the authors of last month's study Marlene Plumlee of the University of Utah, said: 'In many cases, this is not about a standard being complex or difficult to apply, they just didn't apply it.'

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