Who is this article for?

Users of the restatement databases.

Restatement databases subscription is required.

Ideagen Ideagen Audit Analytics tracks three types of error corrections: non-reliance restatements (Big R), revision restatements (little r), and out-of-period adjustments, each reflecting different regulatory and accounting distinctions in how companies correct financial statement errors.

1. Restatement types

The correction a company makes depends on the error's severity. Each type has distinct disclosure rules, investor impacts, and representation in Ideagen Audit Analytics. Knowing the type is key for accurate data interpretation, whether for research, audit quality, or risk assessment.

2. Identifying restatements

2.1. Non-reliance restatements (Big R)

Non-reliance restatements are the most serious error corrections, indicating that previously issued financial statements contain material errors and are unreliable.

Companies must file an 8-K Item 4.02 ("Non-Reliance on Previously Issued Financial Statements") to notify investors and then restate and refile the corrected financial statements.

Due to the 8-K Item 4.02 filing, these restatements are highly visible and tracked. In Ideagen Audit Analytics, a Big R restatement shows a date in the Date of 8-K Item 4.02 field.

2.2. Revision restatements (little r)

A revision restatement corrects errors that are individually immaterial to the previously filed financial statements but are material in aggregate to the current financial statements. Because the errors do not rise to the level of non-reliance, no 8-K Item 4.02 is required. Instead, the company revises prior-period financial statements within a periodic filing (10-K, 10-Q, etc.).

These are sometimes called "little r" restatements because they are less disruptive. The company does not need to issue a separate non-reliance warning, and no new financial statements need to be refiled.

In Ideagen Audit Analytics data, a little r restatement will not have a value in the Date of 8-K Item 4.02 field. That blank field is how you distinguish them from Big R restatements.

4. Identifying out-of-period adjustments

An out-of-period adjustment fixes a minor error entirely in the current period without changing past financial statements. Unlike a restatement, it does not alter prior financials but recognises the correction going forward.

On the Ideagen Audit Analytics platform, out-of-period adjustments have a separate search page from restatements. In Feed 39, both are combined but can be identified using the restatement type field.

5. Differences between platform and feed

The number of records you see can differ depending on whether you're using the platform or a data feed.

5.1. Platform

The Restatements search page shows financial restatements (both Big R and little r). Out-of-period adjustments have a separate search page.

5.2. Feed

Feed 39 includes all types: financial restatements, out-of-period adjustments, and two historical types (SAB 108 and FIN 48 restatements). The historical types come from a one-off research project and are not recommended for general use; they are excluded from the platform.

As a result, Feed 39 usually has many more records than the platform shows. This is expected, as the feed offers the most comprehensive restatement data collected by Ideagen Audit Analytics.

6. Filtering restatement types

6.1. Platform

To filter restatement types on the platform:

1. Navigate to the Restatements search page or the Out-of-period adjustments search page.
   The search page you're on tells you which type of record you're viewing.
2. Use the Has Reissuance filter to narrow your results.
   Yes returns Big R (non-reliance) restatements, and No returns little r (revision) restatements.
3. Check the Date of 8-K Item 4.02 column in search results.
   If there's a date, it's a Big R; if blank, it's a little r.

6.2. Feed

To filter restatement types in Feed 39:

1. Use the restatement type field to filter by type.
2. Refer to the Feed 39 data dictionary for the specific field values.

7. Exclusions

Ideagen Audit Analytics defines a restatement as a revision of previously filed financial statements as a result of an error, fraud, or GAAP/foreign principle misapplication.

The following are not included, even if the word "restatement" or "restated" appears in a filing:

• Changes in accounting principles applied retrospectively (e.g. adopting a new FASB standard)
• Retrospective revisions for comparative purposes due to mergers, acquisitions, or divestitures
• Stock splits or reverse stock splits that restate per-share data
• Restated articles of incorporation, promissory notes, or stock option plans
• Tax resolutions or adjustments of estimates

These exclusions exist because the database is specifically focused on corrections of errors, not on any revision that happens to use the word "restate".

8. Regional differences

Ideagen Audit Analytics tracks restatements across three regions: US (SEC), Canada (SEDAR), and Europe (EEA, UK, and Switzerland).

The Big R/little r distinction is unique to US data, relying on the 8-K Item 4.02 filing—an SEC requirement not found elsewhere. In Europe, reissuances for material errors happen but are rarer and lack a specific filing type like in the US.

All three regions track financial restatements and out-of-period adjustments but differ in methodology, taxonomy, coverage, and how restatement categories and financial impact data are handled.

Note

Refer to the search guides for each regional database for specifics.