BusinessCompany NewsSEC gives advice on misstatements

SEC gives advice on misstatements

Guidance will help quantify errors in financial statements

A new bulleting released by US regulator, the Securities and Exchange
Commission, is aimed to help companies erase prior misstatements on their
financial statements and also explains how, going forward, companies should
quantify errors and correct them.

The bulletin offers guidance on determining whether an error in a company’s
financial statements is material enough that it be corrected.

According to the WebCPA, this is a significant problem because errors that
are insignificant in any given year can build up over time to a point at which —
if they were corrected — would materially distort the financial results in the
year in which the correction is made.

‘Companies are required to correct these errors, but in a less painful way
than they otherwise might have needed to,’ said Scott Taub, deputy chief
accountant at the SEC.

Related Articles

BDO replaces Deloitte as Mitie auditor

Audit BDO replaces Deloitte as Mitie auditor

3m Emma Smith, Managing Editor
CVR Global appoints partner in London office

Company News CVR Global appoints partner in London office

7m Alia Shoaib, Reporter
FTSE100 failing to provide adequate ethics information

Company News FTSE100 failing to provide adequate ethics information

7m Alia Shoaib, Reporter
Moore Stephens recruits new private client partner

Accounting Firms Moore Stephens recruits new private client partner

10m Emma Smith, Managing Editor
Magma Group announces merger, partner promotions

Accounting Firms Magma Group announces merger, partner promotions

10m Emma Smith, Managing Editor
BDO on ‘recruitment spree’ with multiple partner appointments

Accounting Firms BDO on ‘recruitment spree’ with multiple partner appointments

10m Emma Smith, Managing Editor
Brand strength leads to fee income growth for RSM

Accounting Firms Brand strength leads to fee income growth for RSM

10m Emma Smith, Managing Editor
Mazars strengthens audit team with partner appointment

Accounting Firms Mazars strengthens audit team with partner appointment

10m Emma Smith, Managing Editor