Earnings persistence Recasting and Adjusting General Recasting Procedures o Income statements of several years(typically at least five)are recast l2 Recast earnings components to yield meaningful classifications and a relevant format for analysis 3 Components can be rearranged, subdivided, and tax effected 4 Total recasted components must reconcile to reported net incomeGeneral Recasting Procedures  Income statements of several years (typically at least five) are recast  Recast earnings components to yield meaningful classifications and a relevant format for analysis  Components can be rearranged, subdivided, and tax effected  Total recasted components must reconcile to reported net income Earnings Persistence Recasting and Adjusting