Accounting Changes and Error Corrections

12 Months Ended

Dec. 31, 2023

Accounting Changes and Error Corrections [Abstract]

21. Revision of 2022 Issued Consolidated Financial Statements

As described in Note 1, in connection with the preparation of the consolidated financial statements for the year ended December 31, 2023, the Company identified errors in the areas of income taxes, noncontrolling interests, and accumulated other comprehensive loss in its previously issued 2022 annual consolidated financial statements.

The Company has revised its financial statements as of and for the year ended December 31, 2022, to reflect the corrections in this Form 10-K. There were no changes to previously issued cash flows generated from (used by) operating, investing, or financing activities for any of the impacted periods. Line items impacted in the Consolidated Statements of Shareholders Equity have been reflected below within the Statements of Comprehensive Income (Loss) and Consolidated Balance Sheet below. Presented below are the effects of the errors to the impacted financial statements as of and for the year ended December 31, 2022.


Consolidated Statements of Operations and
Consolidated Statements of Comprehensive Income (Loss)
	Year Ended December 31, 2022
	As reported		Adjustment		As revised
Other, net	$	(7,059)	$	2,084	$	(4,975)
Other income (expenses)	(85,727)		2,084		(83,643)
Income before income taxes and equity in earnings of non-consolidated affiliates	73,501		2,084		75,585
Income tax expense	7,580		17,882		25,462
Income before equity in earnings of non-consolidated affiliates	65,921		(15,798)		50,123
Net income	65,842		(15,798)		50,044
Net (income) attributable to noncontrolling and redeemable noncontrolling interests	(38,573)		8,448		(30,125)
Net income attributable to Stagwell Inc. common shareholders	$	27,269	$	(7,350)	$	19,919

Earnings Per Common Share:
Basic	0.22		(0.06)		0.16
Diluted	0.17		(0.05)		0.12

	Year Ended December 31, 2022
	As reported		Adjustment		As revised
Other comprehensive (loss) - foreign currency translation adjustment	$	(37,751)	$	(22)	$	(37,773)
Other comprehensive (loss)	(33,663)		(22)		(33,685)
Comprehensive income for the period	32,179		(15,820)		16,359
Comprehensive (income) attributable to the noncontrolling and redeemable noncontrolling interest	(38,573)		31,933		(6,640)
Comprehensive income (loss) attributable to Stagwell Inc. common shareholders	(6,394)		16,113		9,719


Consolidated Balance Sheet
	December 31, 2022
	As reported		Adjustment		As revised
Other current assets	71,443		2,568		74,011
Total current assets	$	1,030,955	$	2,568	$	1,033,523
Other assets	115,447		691		116,138
Total assets	$	3,993,332	$	3,259	$	3,996,591

Accruals and other liabilities	248,477		20,394		268,871
Total current liabilities	1,349,802		20,394		1,370,196
Deferred tax liabilities, net	40,109		770		40,879
Other liabilities	69,780		(2,085)		67,695
Total liabilities	$	3,009,587	$	19,079	$	3,028,666

Retained earnings	29,445		(7,350)		22,095
Accumulated other comprehensive loss	(38,941)		23,463		(15,478)
Stagwell Inc. Shareholders' Equity	482,537		16,113		498,650
Noncontrolling interests	462,097		(31,933)		430,164
Total Shareholders' Equity	944,634		(15,820)		928,814
Total Liabilities, Redeemable Noncontrolling Interests and Shareholders' Equity	$	3,993,332	$	3,259	$	3,996,591