A new report from Audit Analytics shows that although the total quantity has leveled off, the number of financial restatements by companies listed on the New York Stock Exchange has increased steadily over the last three full years. Restatements for Over The Counter (OTC) companies have also risen.
During 2009, 65 NYSE companies disclosed restatements, followed by 90 in 2010, and 108 in 2011.
Restatements involving debt, quasi-debt, warrants & equity security issues rose further in 2011 and remained the top reason for restatement.
The largest financial restatement for each of the last three years was disclosed by a foreign registrant.
During 2011, Revision Restatements (restatements revealed in a periodic report without a prior 8-K, Item 4.02 disclosure that past financials can no longer be relied upon) represented about 57% of the restatements disclosed by 10-K filers. This percentage represents the highest percentage calculated since the disclosure requirement came into effect August 2004.
Details are available in the report 2011 Financial Restatements An Eleven Year Comparison.