My understanding is that when a company does a stock split, you have to go back and restate prior years to reflect the stock split. If the BoD declares a stock split before our financials are issued, but it doesn’t become effective until after our financials are issued, do we still need to go back and reflect the stock split throughout the financials?
Stock split restatement
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Usually the effective date will drive the accounting, so if the effective date is after the issuance of your financials, then you wouldn’t reflect the stock split in your balance sheet and EPS. However, you should have a footnote disclosure describing the stock split and have pro forma disclosures of how your equity and EPS would look after the stock split. In your next filing, you would then restate the financials and get rid of the pro forma disclosures.