Write a two to three (2-3) page paper in which you: choose a US company: Assess

Question

Write a two to three (2-3) page paper in which you: choose a US company: Assess the factors that contributed to the financialstatement restatement, signifying the executive management team’s attitude toward the restatement. Suggest how the restatement may have been avoided during the initial reporting process. Explain the impact to the company’s stock price when the restatement was released and to future earnings forecast, indicating whether or not you believe the impact to the stock price was justified. Evaluate the restatement in terms of management’s ethical violations according to the requirements of the Sarbanes-Oxley Act, providing recommendations to management on how to avoid these problems in the future. Provide support for your recommendations. Use at least two (2) quality academic resources in this assignment. Note: Wikipedia and other Websites do not quality as academic resources. View comments (1)

Explanation / Answer

The factors that contributed to the Financial Restatement are that the proper compliance are not followed while preparing the financial statements as compliance of Indian Financial reporting Standards )IFRS) or the compliace of accounting standards or we can say the compliance of various act regulated by various bodies such as banking regulation act for the financial statements of banks. Also the Restatement can be done in case there is a Fraud and financial staetments are not showing or giving true and fair view or the reason may be that to give improper compliance of law. Fiancial statements are properly viewed All the disclosures are to be properly made . If the disclosures are not properly given then there is a need to restatement of financial statements.

The management attitude towards the restatement is unfair because now it is a proper responsibility of a mangement to do the restatement. Restatement of financial statements can be needed to make a proper view in respect of diclosures and compliance

The Sarbanes-Oxley (SOX) Act, this was made with the reason or view of improving the quality of accounting, reliabilty of financial data to investors, and providing proper view to accounting professionals with the help of a new federal agency, Public Accounting Company Oversight Board (PACOB)

The Answer is giving by taking the help of IND AS 1 which tells the proper presentation of financial statements and the two quality acedemic research in this assinghment is of SEBI website and the IND-AS Book

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