Restatements

Turn crisis into opportunity – pivoting your organization towards a stronger future

Restatements

When companies are required to reissue financial statements

Correcting an accounting error or financial misstatement challenges management to react quickly to problem areas they may or may not be prepared to handle while continuing to perform their "day-to-day" responsibilities. Often the trigger to a restatement is only the tip of the iceberg and companies may quickly find themselves facing potential delinquency on current reporting requirements while trying to detect and correct past errors.

What impacts should companies consider?

  • Restatements can be drawn out and expensive processes may require management to communicate with many different stakeholders, including the board of directors, auditors, regulators and shareholders.
  • Management may not have deep in-house technical resources in certain areas of accounting (e.g., derivatives, hedging and consolidation).

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What should companies do?

  • Gain an understanding of different stakeholders' expectations and how to navigate effectively through sensitive discussions.
  • Seek integrated skill sets to support expertise needed in SEC and other regulatory reporting requirements (e.g., 10-K/A, 8-K, 12b-25), valuation, tax, actuarial, training, accounting policies and other needs critical to accurate financial reporting.

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How PwC can help

PwC is a trusted resource for helping companies navigate the complexities of financial restatements. Our knowledge of the regulatory review process puts you in a stronger position to develop financial reporting and disclosure practices. This support can help you develop strategies to withstand regulatory scrutiny, anticipate potential areas of SEC focus in future filings, and meet constantly evolving expectations for clear and transparent financial reporting.

Our experience includes complex, multi-year restatement advice and support, including project administration. Our specialists offer technical assistance in complex areas prone to restatement such as: 

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Contact us

Michelle Krupa
Partner, Capital Markets Accounting Advisory Services, Restatements
Tel: +1 (646) 471 4005
Email

Paul Sheward
Partner, Deals, U.S. Accounting Advisory Services Leader
Tel: +1 (312) 298 2232
Email