The Sarbanes-Oxley Act of 2002 Contains a "Clawback Provision" Which

question 48

True/False

The Sarbanes-Oxley Act of 2002 contains a "clawback provision" which requires the CEO and CFO to reimburse the issuer for any bonus or incentive-based compensation received during the 12-month period following the issuance of the restated financial statements.

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Definitions:

Consolidated Worksheet

A tool used in the preparation of consolidated financial statements, enabling the combining of financial information from parent and subsidiary entities.

Adjustments

Modifications made to the accounting records or financial statements to correct errors or to account for transactions not reflected in the initial entries.

Consolidated Net Income

The total profit of a parent company and its subsidiaries after taxes and interest, combined into one financial statement.

Controlling Interest

An ownership interest in a business entity sufficient to provide the power to direct its policies and management.