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QuestionsCategory: Management QuadrantRestated Revenue/Sales/Earnings in subsequent year's Annual Report
Kean Soon Tan asked 3 years ago

Hi FifthPerson,
 
Can I check is this considered instant red flag if the company restated Revenue/Sales/Earnings in subsequent year’s Annual Report as compared to previous year’s Annual report?
To me, the sales/earnings figure between last year’s annual report and the subsequent year’s annual report should tally as far as ethics is concerned. A sudden change in subsequent official statements/figures doesn’t look good on the company itself.
 

1 Answers
Victor Chng answered 3 years ago

Hi Kean Soon,
 
Sometimes there are some accounting rules changes hence the company have to restate the figure which is not an issue.
But if the restatement happen too often or the amount restated make a huge difference from the previous year then it is really questionable.