Monday, March 06, 2006
Restatements Surged in 2005, Says Study
Restatements are busting out all over. The number of revisions of financial reports by publicly traded companies surged to a record 1,295 in 2005, nearly double the previous year's mark of 650, according to a new study by Glass, Lewis and Co., a corporate-governance research firm. The tally is also more than triple the total in 2002, the year the Sarbanes-Oxley Act (Sarbox) was passed.
According to the study, 1,195 companies — or 8.5 percent of all U.S. corporations — filed a restatement. That compares with 4.5 percent the previous year. From 1997 through 2005, public U.S. companies filed 3,642 restatements to correct accounting errors. That's about 30 percent of all public U.S. companies during the past nine years.
posted by Brian Moran @ 10:39 AM