Play it again, Sam – Some borrowers report their financial results more than once
Abstract: Lenders become understandably uneasy when borrowers reissue their financial statements. For most borrowers, financial restatements result from an honest mistake or misinterpretation of accounting standards, rather than from incompetency or fraud. But that’s not always true. This article looks at a number of reasons, both innocent and not-so-innocent, that might call for a restatement. The lender must evaluate restatements carefully to unearth the underlying cause and thereby determine whether or not it’s best to continue with the borrower.