CIT Group Inc restates its earnings

CIT Group Inc, a lending institution, restated its financial statements for the first three quarters of 2010 due to accounting error that the company’s management found.

The errors were mainly related to the use of “Fresh State Accounting”, a form of accounting used by companies that have exited bankruptcy. But unlike most other restatements, this one has a positive impact on the company’s financial statements. The revised results have led to an increase in net income of approximately $25 million for the nine months ended September 30, 2010. The company’s book value also has been increased by 10 cents to $44.2 due to the restatement.