Financial restatement

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A financial restatement occurs when a material error in a company’s previously published financials is corrected and the financials are republished.

When such an error is discovered, the company is required in the United States to file a Form 8-K, alerting investors that previously published financials can no longer be relied upon and are under review for restatement. If the error is not material, the financial statements are not restated but are simply amended.

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AccountingTools: Restatement definition