Quasi-Reorganizations: An Analysis of Accounting Restructuring on Firm Performance

Posted: 24 Feb 1998

See all articles by Robert Nachtmann

Robert Nachtmann

University of Texas at El Paso - College of Business Administration

Karen Shastri

Katz Graduate of Business

Abstract

A quasi-reorganization pursuant to Accounting Research Bulletin (ARB) 43 restates the deficit in retained earnings when a firm has engaged in a "fresh start" by transferring the deficit to the paid-in-capital accounts. For publicly traded firms the SEC requires them to also revalue assets and liabilities to reflect current market values. This is consistent with the SEC's public disclosure requirement of providing a fair and accurate statement of the economic condition of a new firm.

JEL Classification: G33, K22, M4

Suggested Citation

Nachtmann, Robert and Shastri, Karen Andrea, Quasi-Reorganizations: An Analysis of Accounting Restructuring on Firm Performance. Available at SSRN: https://ssrn.com/abstract=55460

Robert Nachtmann

University of Texas at El Paso - College of Business Administration ( email )

500 West University
El Paso, TX 79968-0545
United States

Karen Andrea Shastri (Contact Author)

Katz Graduate of Business ( email )

University of Pittsburgh
Mervis Hall
Pittsburgh, PA 15260
United States
412-648-1533 (Phone)
412-648-1693 (Fax)

HOME PAGE: www.pitt.edu/~karen

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