What a Restatement Reaches
A restatement reaches far beyond the filing. Every document resting on the figures should be read again.
The problem. Earnings releases, guidance, registration statements, covenant certificates and bonuses all rest on the books, across five departments. Finance's close system sees its own filings; a date sweep flags everything in range and cannot tell what still stands.
What this demo shows. On generated books Fabric missed 0 of 75 documents a correction reached and got no verdict wrong; the close system missed 33, all outside finance, and a date sweep got 57 verdicts wrong. On real SEC filings, 2,156 registration statements and prospectuses were filed in the year before 327 non-reliance notices, and 97 notices took more than 90 days to an amended report.
How it works:
- Every department. Releases, guidance, registration statements, covenants and bonuses rest on the entries they use, so a correction reaches all of them.
- On the corrected numbers. A covenant that still passes and an immaterial change stay standing; a missed bonus target is a recovery.
- As of the day. What a document stood on when it was issued is read from what was known that day.
The honest part. The verdicts are judged on a fictional company's generated books. On real filings the counts show reach and repair time, using the year before each notice in place of the periods it names. Not accounting, legal or investment advice.
Fabric tells every department, the day the books change, which documents to amend, review, recover or leave.
A company's figures are not only in its filings. Earnings releases and guidance quote them, a registration statement incorporates them, a lender's covenant certificate and an executive's bonus are tests on them. When a correction changes the books, finance's close system sees its own filings; everything else waits for someone to remember it. Fabric follows the correction to every document resting on the changed entries, in every department, and reads each one again on the corrected numbers: amend it, review it, or leave it, because the test still passes or the change is immaterial.
Sections 1 and 2: generated books of a fictional company, with planted corrections and an answer key. Section 3: real SEC EDGAR filings, saved as fetched; counts only, no verdict on real documents. Not accounting, legal or investment advice.
1. Four corrections in one generated company
2. Against the close system and a date sweep
3. The real record
What this does not show
- The verdicts are judged on generated books. On real filings the counts show reach and repair time, not which documents were wrong.
- The real reach is every registration statement, prospectus and earnings release a company filed in the 365 days before its notice; the notices name the periods withdrawn, which were not read, so some of those documents rest on periods that were not.
- An amended 10-K/A or 10-Q/A is counted as the repair; some companies correct the figures in their next ordinary report instead. The bonus and covenant cases are generated; real compensation recovery and lender notices are not on EDGAR in a form counted here.
- Not accounting, legal or investment advice.