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Nonprofit Blog

Digging Deeper: Why Bankers Should Closely Examine Financial Restatements

Posted by bgoricki on Feb 12, 2017 5:34:54 PM

Businesses may reissue their financial statements for several reasons. Management might have misinterpreted the accounting standards, requiring the company’s external accountant to adjust the numbers. Or they simply may have made mistakes and need to correct them. But a financial restatement also can be a sign of incompetence — or even fraud. Bankers should examine financial restatements closely to accurately evaluate their borrowers’ situations.

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Topics: Advisory, Commercial Banking, Commercial Lenders, financial restatements, Uncategorized

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