https://referently.com/tags/financial-reporting/ Recent content in financial reporting on Referently.com Hugo -- gohugo.io en-us Sun, 17 May 2026 00:00:00 +0000 https://referently.com/going-concern-opinion/ Sun, 17 May 2026 00:00:00 +0000 https://referently.com/going-concern-opinion/ A going concern opinion is an auditor’s formal statement that there is substantial doubt about a company’s ability to continue operating for the next twelve months. It is among the most consequential disclosures in financial reporting — and one of the most misread by investors encountering it for the first time. What It Is Financial statements are prepared on the assumption that the entity will continue as a going concern — that it will remain in business long enough to realize its assets and fulfill its obligations in the ordinary course of operations. https://referently.com/material-weakness-vs.-significant-deficiency/ Sun, 17 May 2026 00:00:00 +0000 https://referently.com/material-weakness-vs.-significant-deficiency/ A material weakness and a significant deficiency are both deficiencies in a company’s internal controls over financial reporting — but they sit at different points on the severity scale, and the consequences of each are substantially different. What They Are Internal controls over financial reporting (ICFR) are the processes a company uses to ensure that its financial statements are accurate. Auditors and management evaluate these controls under frameworks like COSO and standards like PCAOB AS 2201 (for U. https://referently.com/sab-99-materiality/ Sun, 17 May 2026 00:00:00 +0000 https://referently.com/sab-99-materiality/ SAB 99 — Staff Accounting Bulletin No. 99, issued by the SEC in 1999 — established the authoritative framework for assessing whether a misstatement in financial statements is material and therefore requires correction or disclosure. It is the document that killed the “5% rule” as a reliable safe harbor. What It Is Before SAB 99, a widespread informal practice held that misstatements below 5% of net income were automatically immaterial and could be left uncorrected. https://referently.com/segment-reporting/ Sun, 17 May 2026 00:00:00 +0000 https://referently.com/segment-reporting/ Segment reporting is the requirement that public companies disclose financial information separately for each significant operating segment of their business. It exists because consolidated financial statements, while accurate in the aggregate, can obscure the performance dynamics of individual business units that investors and analysts need to assess value. What It Is A diversified company might operate a fast-growing software division, a mature hardware business, and a declining services unit. The consolidated income statement shows total revenue and operating income — the blended result.