Credit-score provider TransUnion discovers significant financial reporting issues

  • TransUnion to restate financials after discovering ‘computational error’ and ‘material weakness’
  • Restatement affects financials through nine months of last year
  • Mistake involves an overstatement of approximately $80 million
  • Error related to translating U.S. dollar values
  • TransUnion to provide more information about the ‘material weakness’ in amended filing
  • Shares fell 0.8% after hours

TransUnion, one of the nation’s major credit-score and credit-report providers, has announced that it will be restating its financials for the first nine months of last year. The restatement comes after the company discovered a ‘computational error’ and a ‘material weakness’ in its accounting protocols. The error, which involved an overstatement of approximately $80 million, was related to the translation of U.S. dollar values. TransUnion has stated that it will provide more information about the ‘material weakness’ and the steps being taken to correct it in an amended filing. Following the announcement, shares of TransUnion fell 0.8% after hours.

Public Companies: TransUnion (TRU)
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Factuality Level: 8
Justification: The article provides specific details about TransUnion restating its financials due to an error and a material weakness in its accounting protocols. It includes direct quotes from the company and mentions the specific financial statement that was misstated. The article also mentions the reason for the mistake and states that more information will be provided in an amended filing. Overall, the article provides factual information about the situation without any obvious bias or misleading information.

Noise Level: 7
Justification: The article provides information about TransUnion restating its financials due to an error and a material weakness in its accounting protocols. It mentions the specific error and the impact it had on the financial statements. However, the article lacks in-depth analysis, scientific rigor, and actionable insights. It also does not explore the consequences of the restatement on the company or its stakeholders.

Financial Relevance: Yes
Financial Markets Impacted: TransUnion and its financials

Presence of Extreme Event: No
Nature of Extreme Event: No
Impact Rating of the Extreme Event: No
Justification: The article pertains to financial topics as it discusses TransUnion restating its financials due to an error and a material weakness in its accounting protocols. However, there is no mention of an extreme event or its impact.

Reported publicly: www.marketwatch.com