Running Head: FINANCIAL STATEMENT RESTATEMENT AND ETHICFinancial Statement Restatement and EthicsNameCourseTutorDate1FINANCIAL STATEMENT RESTATEMENT AND ETHICS2Hertz Global released its restated revenues from 2011 to 2013. The company confirmedin a statement that it misstated pre-tax income over the three years by $207 million.Therefore, the car rental company announced that it would restate its revenue between 2011and 201 because of the accounting issues. Specifically, the companys management cited thefollowing factors as the primary contributors of restating their financial statements.I.Correcting errorsThis is one of the most common reasons why the companys financial statements wererestated. The top management found various errors after releasing their financial statements.These errors were thought to be materials to the financial statements by the companysinternal auditors, and hence there was a need to correct before being issued to the users.II.Changes in the generally accepted accounting principlesIf a change in required methods of accounting in the current financial year wouldtransform the prior years statements if implemented retroactively, those comparisonstatements must always be restated. This will ensure that no statements changes over thecourse of the year come up from a shift in the accounting policy which was used.III.Changes in the reporting entity.The companys management also argued that it considered res ...
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