Misstatement: meaning, definitions and examples
📝
misstatement
[ ˌmɪsˈsteɪtmənt ]
financial reporting
A misstatement refers to an incorrect or misleading representation of financial information. It may arise from errors or fraudulent activities and can significantly impact the decision-making process of stakeholders. Misstatements can be caused by inaccuracies in data collection, interpretation, or reporting. The recognition of a misstatement often leads to a reassessment of the financial statements involved. Preventing misstatements is crucial for maintaining the integrity of financial reporting and trust with investors.
Synonyms
error, falsehood, inaccuracy, misrepresentation.
Examples of usage
- The audit revealed a material misstatement in the financial report.
- The company was fined for misstating its earnings.
- Management took steps to correct the misstatement identified by the auditors.
Translations
Translations of the word "misstatement" in other languages:
🇵🇹 afirmação errada
🇮🇳 गलत बयान
🇩🇪 Fehlangabe
🇮🇩 pernyataan salah
🇺🇦 неправильне твердження
🇵🇱 błędne oświadczenie
🇯🇵 誤った声明
🇫🇷 déclaration erronée
🇪🇸 declaración incorrecta
🇹🇷 yanlış beyan
🇰🇷 잘못된 진술
🇸🇦 بيان خاطئ
🇨🇿 chybná výpověď
🇸🇰 nepresné vyhlásenie
🇨🇳 错误陈述
🇸🇮 napačna izjava
🇮🇸 rangariðning
🇰🇿 қате мәлімдеме
🇬🇪 არასწორი განცხადება
🇦🇿 səhv bəyanat
🇲🇽 declaración incorrecta
Etymology
The term 'misstatement' is derived from the prefix 'mis-', which comes from Old English meaning 'wrongly' or 'badly', combined with the word 'statement', which traces back to the Latin 'statementum', referring to something that has been stated or declared. 'Statement' itself has evolved in various forms through Middle English before adopting its modern form. The concept of a misstatement has gained prominence particularly in the fields of accounting and finance, where the accuracy and truthfulness of statements are paramount. Misstatements can have serious implications, especially in corporate governance and legal contexts. Over time, the understanding and definitions surrounding misstatement have evolved as regulatory frameworks have strengthened to combat issues of transparency and integrity in financial reporting.