Annual adjustments: types, causes and capital market reaction

Companies usually have the effect of error correction the significance of the past or changes in accounting practices in the form of adjustments to the annual report and subsequently revised comparative financial statements are presented. Adjustments to the annual financial statements are presented and the subsequent revision of the relevance and reliability of financial information has a negative effect. However, in recent years the annual adjustment of listed companies in Tehran Stock Exchange has evolved. In this paper, according to studies in international and national levels, adjustment of annual and annual adjustments to the capital market reaction to the theory expressed. Some companies also provide actual data exchange, analysis and interpretation of their annual adjustments were made. For this reason, during the years 1388 to 1390, 256 View a sample was extracted. The results showed that most of the annual adjustment of the transmission loss is negative and significant correction of errors. So that the average annual adjustments in the cost of transport companies approximately 7% of net sales and a 48% absolute gain (loss) rounds. the average annual adjustment of the error-correction with negative significance 3.5% of net sales and 63% of the absolute value of profits (losses) of those.