Finance Blogs
- Scott Adams on Board Governance
-
From Financial Rounds
January 19, 2008 4:40 PM
- Corporate governance survey conducted (Pakistan)
-
From Inside Sarbanes Oxley
January 19, 2008 12:13 AM
- Enron-driven reforms are unraveling
-
From Inside Sarbanes Oxley
January 19, 2008 12:06 AM
- More...
The Finance Institute
- Tackling T&E Expense Reports
-
Webcasts
- Performance Management – It's Not Just About Technology
-
Webcasts
- More...
Diverts
- Son Ends Up in His Father's Old Dorm Room
- Mike Robell, a freshman at Michigan State University, got a big surprise when he moved into his dorm room -- he found that it's the same room his father lived in three decades ago. [more]
- Judge Throws Out Popcorn Case
- Manhattan Civil Court Judge Matthew Cooper has thrown out Steve Kaplan's case against AMC Theatres. [more]
- Biggest Elvis, Burger, Roller Coaster, and More!
- In case you were wondering, the largest velvet Elvis -- he's 12 feet by 12 feet -- can be spotted at The Tattoo Factory in Chicago. [more]
- More Diverts
Business Purchasing
Business Finance has partnered with BuyerZone.com to make it easy for you to find advice and tools for your business purchases. BuyerZone's free Request for Quotes service quickly connects you with suppliers of over 150 product, service and equipment categories. They also have hundreds of articles full of purchasing advice and insider tips. Click here to review some of the most common purchases that face your business.
On Your Desktop
Add SearchFinance to your desktop using the Yahoo! Widget Engine:
From the Blogosphere
November 7, 2007 1:07 PM
From AAO Weblog: Jack Ciesielski
Huron Consulting Group, built by ex-Arthur Andersen partners, has studied restatements over the years. They've put together a "best practices" document that's sure to be in demand among companies that might be 'fessing up to past errors. You can download a copy of it here. (Registration required.)
Investors might not be particularly interested in best practices for going through a restatement process: "just the facts, ma'am" is more or less all they care about. Nevertheless, there are some interesting nuggets that Huron has turned up in building their database of restatement information gleaned from 8-K filings over the years.
For instance:
? The average time between the filing of the initial Form 8-K and the filing of the restated financial statements was seven weeks; the median was three weeks. That's because some restatements take a couple months, and others stretch over a year.
? About one out of every six restatements captured by Huron was filed within a day of the Form 8-K; about one-third of the restatements were filed within two weeks of the initial filing.
? About 80% of the restated financials were filed within four months of the first 8-K warning of non-reliance on financial statements.
? About 19% of the time, the restated financials encompassed more accounting issues than were originally identified.
? The nature of the accounting issue didn't matter when it came to how long the restatement took to complete. The same five issues were the most common in the restatements that took more than four months to complete as the ones that were accomplished more quickly. Those issues: equity/debt classification, capitalization/expense issues, reserves/accruals/contingencies, revenue recognition, and taxes.
? Company size had no bearing on the speed of the restatement process.
? High-tech firms took longer to restate than "old school" manufacturers.
Investors are often aggravated by the restatement process, which can seem to drag on forever when you want to evaluate a company based on complete facts. Hats off to Huron: knowing these parameters won't make investors welcome restatements, but at least they've provided some realistic, quantitative descriptions of the process that makes it easier to bear.
[ Read the entire post at AAO Weblog: Jack Ciesielski ]
Other recent entries from AAO Weblog: Jack Ciesielski:
Webcasts
Podcasts
Research