A change in revenue recognition at Trustmarque reduced the software supplier's profits by £2m.
The detail was revealed in the company's latest financial report, Channel Register reported. The reports were filed at Companies House, according to Channel Register.
Trustmarque, which is based in York and makes software for the UK public sector, had cashflow problems after changing auditor and its accounting rules, Channel Register reported.
Last month, the company was bought by Liberata.
According to the accounts and strategic report, accounting changes led to a restatement that reduced profits by £2m and sales by some £500,000, Channel Register reported.
“Together with the impact of the strategic investments and the acquisition of Opin Systems, Trustmarque’s ultimate parent company, Project Lenon (Topco) (PLT) Ltd required increased investment,” it said.
Trustmarque declined to comment.