|
Financial Restatement Services
"...the number of restatements has significantly increased in recent years…the number of large company restatements has increased…errors in revenue recognition and improper expense accounting are among the most common reasons for financial statement restatements."
Alan L. Beller
Director, Securities and Exchange Commission
Over the past decade the number of corporate financial restatements has grown significantly. Typically, the primary reason for these restatements involves improperly recorded revenue, including revenue that is recognized sooner or later than allowed by Generally Accepted Accounting Principles (GAAP). Other reasons for restatements include adjustments due to cost or expense-related issues, improperly accounting for acquisitions and mergers, reclassification of accounting items, related-party transactions, asset impairment, timing of asset write-downs and goodwill issues.
If your corporation has a need for financial restatement because of your own internal audit findings, independent auditors or the SEC, Dixon Hughes Goodman is prepared to provide a team of accounting professionals ready to work closely with your senior management and counsel. Our highly skilled professionals will focus on the restatement process while minimizing the disruption to your day-to-day operations. We have a proven track record which can be seen from our engagement with one of the nation's highest-profile restatements.
Our restatement capabilities include:
- Project management
- Document, records and file management
- Risk assessment
- Audit planning and coordination
- Communication with external audit
- Recommendations/reviews of adjusting entries for restatement issues
Outsourcing Success Story
Client: A large tax credit investor with over $8 billion in investments. Need: The client was engaged in a major restatement of its Financials as the result of new accounting rules, policies and standards. Specifically, it lacked accountants with sufficient industry knowledge and expertise to employ the new guidelines across its investment portfolio. Reason: The client needed specialized industry knowledge to properly account for its investment portfolio. Capabilities: The client sought a partner that could deliver the highest accounting and business solutions that would contribute to successfully accounting for its portfolio including the new accounting rules and guidance issued by the Financial Accounting Standards Board. We Provided: Dixon Hughes Goodman developed a strategy that included both accounting and Sarbanes-Oxley compliance for these investments. We developed a broad-based accounting plan and deliverables that included:
- Analyzing each investment
- Creating customized software to process the accounting for these investments
- Developing and producing monthly and annual reports utilized by management
- Maintaining SOX compliance during this process
- Preparing both 10Q's and 10K for client
Results: The client is currently utilizing a new accounting system that processes its accounting successfully because of our engagement. Coupled with Dixon Hughes Goodman ensuring the client was compliant with SOX, the client now has a proven method for its accounting and internal controls in its business unit.
|
