For instance, one may backdate an insurance claim if there was an unavoidable delay between the date the insured event occurred and the day the claim was made.
One of the larger backdating scandals occurred at Brocade Communications, a data storage company.
It was forced to restate earnings by recognizing a stock-based expense increase of $723 million between 19, after allegedly manipulating its stock options grants for the benefit of its senior executives.
Backdating is used when a fund offers declining proportional sales charges on larger purchases.
Option backdating scandals: how management accountants can help: backdating of employee stock options can have a significant negative effect on a public company.
According to a study by Erik Lie, a finance professor at the University of Iowa, more than 2,000 companies used options backdating in some form to reward their senior executives between 19.