Bank's error results in upward revision. (Up Front).A mathematical error has forced PFF PFF Progress & Freedom Foundation PFF Preparing Future Faculty (training university teaching assistants) PFF Page Fault Frequency PFF Pre-Formed Fragmentation (type of ammunition projectile) Bancorp Inc., parent of PFF Bank & Trust, to restate re·state tr.v. re·stat·ed, re·stat·ing, re·states To state again or in a new form. See Synonyms at repeat. re·state its earnings per share for the past four years. But while the Pomona-based bank was not happy about the restatement Restatement A revision in a company's earlier financial statements. Notes: The need for restating financial figures can result from fraud, misrepresentation, or a simple clerical error. , which it blamed on human error, the impact was actually positive -- earnings per share went up once the problem was rectified rectified refined; made straight. . The revisions resulted in an increase of no more than 5 cents a share in any year affected. "We're certainly not proud that this has occurred' said Gregory Talbott, executive vice president and chief financial officer of PFF, which has $3 billion in assets and was formerly known as Pomona First Federal Bank. The error was discovered when the company was preparing results for the first quarter ended June 30. In essence, PFF neglected to include tax benefits associated with non-qualified stock options Non-qualified stock options are stock options which do not qualify for the special treatment accorded to incentive stock options. Incentive stock options are only available for employees and other restrictions apply for them. when it was performing its earnings per share calculation. (Companies can issue two types of stock options, incentive stock options and non-qualified stock options. There is not usually a tax benefit associated with incentive stock options.) By including the tax benefits, a higher average price per diluted di·lute tr.v. di·lut·ed, di·lut·ing, di·lutes 1. To make thinner or less concentrated by adding a liquid such as water. 2. To lessen the force, strength, purity, or brilliance of, especially by admixture. share was reported. For the year ended March 31, earnings per share rose to $2.74 from $2.69. Earnings in 1999, the first year of revision, increased a penny, to $1.30. PFF issued a release announcing the revision, indicating the nervousness in today's marketplace, said James Manegold, an accounting professor at USC's Leventhal School of Accounting. "These kinds of things do happen -- everybody makes mistakes," he said. |
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