Reporting Restatement Rate
Number of financial reports requiring material restatement after first issue
What is Reporting Restatement Rate?
Reporting restatement rate is the number of reports that had to be materially restated in a period. It shows how often published numbers turn out to be wrong.
Restatements damage trust in the finance function and can attract regulatory attention, so a low count is a mark of reliable reporting.
How this KPI is measured
- Function
- Finance
- Sub-function
- Financial Reporting
- Industry
- All Industries
- Type
- Lagging
- Impact
- Quality
- Unit
- #
- Measurement frequency
- Quarterly / Annual
- Formula
- Count of reports materially restated in period
How to calculate it
Count the reports materially restated in the period.
For example, if 2 reports were restated after publication during the year, the figure is 2.
Define material in advance, and record the cause of each restatement, such as error, changed estimate or system fault, so that root causes can be fixed.
Where it is used
Monitoring reporting quality
Track errors that reach the public.
Improving controls
Find weak steps.
Protecting trust
Reassure stakeholders.
How to improve it
Tips and common mistakes
- The target is zero.
- Follow the accounting and regulatory rules on restatements.
- Be transparent when restating.
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