What is ‘Earnings Recast’
The act of amending and re-releasing a previously released earnings statement, with specified intent. Some of the most typical reasons for recasting earnings are to show the impact of a discontinued business or to separate out earnings-related events that are deemed to be non-recurring or otherwise non-representative of normal business earnings.
Also known as an “earnings restatement”.
Explaining ‘Earnings Recast’
An earnings recast or restatement is usually done to several years of income statements, depending on how far back the recasting goes. This benefits investors by making the earnings statement more useful for research and analysis. Information regarding any earnings recast released by a publicly traded company should be stated in the footnotes for the earnings report.
Further Reading
- The stock market valuation of earnings and book value across international accounting systems. – elibrary.ru [PDF]
- Do supplementary sales forecasts increase the credibility of financial analysts' earnings forecasts? – meridian.allenpress.com [PDF]
- Financial statement recasting and credit risk assessment – onlinelibrary.wiley.com [PDF]
- A temporal analysis of quarterly earnings thresholds: Propensities and valuation consequences – meridian.allenpress.com [PDF]
- Audit quality and properties of analyst earnings forecasts – meridian.allenpress.com [PDF]
- Loss function assumptions in rational expectations tests on financial analysts' earnings forecasts – www.sciencedirect.com [PDF]
- A re-examination of analysts' superiority over time-series forecasts of annual earnings – link.springer.com [PDF]
- Fair value accounting and gains from asset securitizations: A convenient earnings management tool with compensation side-benefits – www.sciencedirect.com [PDF]
