Business
MTY files restated financial statements for the three and nine-month periods ended August 31, 2017 - Confirms there is no impact on cash flows and business operations
MTY files restated financial statements for the three and nine-month periods ended August ...
About this update from Mty Food Group Inc.
[{"type":"text","content":"\n\n\n\nMTY files restated financial statements for the three and nine-month periods ended August 31, 2017 - Confirms there is no impact on cash flows and business operations\n\n/* Style Definitions */\nspan.prnews_span\n{\nfont-size:8pt;\nfont-family:\"Arial\";\ncolor:black;\n}\na.prnews_a\n{\ncolor:blue;\n}\nli.prnews_li\n{\nfont-size:8pt;\nfont-family:\"Arial\";\ncolor:black;\n}\np.prnews_p\n{\nfont-size:0.62em;\nfont-family:\"Arial\";\ncolor:black;\nmargin:0in;\n}\n\n\n\n\n\n\n\nCanada NewsWire\nMONTREAL, Jan. 3, 2018\n\n\n\nMONTREAL, Jan. 3, 2018 /CNW Telbec/ - MTY Food Group Inc. (\"MTY\" or the \"Company\") (TSX: MTY) today announced that pursuant to the news release published on November 22, 2017, the Company has filed its amended and restated condensed interim consolidated financial statements for the three and nine-month periods ended August 31, 2017 and 2016 (the \"Restated Financial Statements\") and the corresponding amended and restated management discussion and analysis.\n\nOn November 22, 2017, the Company announced that its Board of Directors determined that a restatement was required for the amounts its previously reported in its consolidated financial statements with respect to revenues and expenses related to Kahala gift cards (\"Kahala Gift Cards or Gift Cards\") that resulted from the Kahala Brands acquisition, which closed in July 2016. The restatement had no impact on the past, current and future cash flows of MTY and in no way affected the Company's business operations; the restatement was the result of an erroneous revenue recognition of breakage on the Kahala Gift Cards assumed upon acquisition (\"Breakage\").\n\nManagement determined that the methodology used to calculate the fair value of the liability related to the Kahala Gift Cards at the time of the acquisition was inappropriate, resulting in further inaccuracies in the determination of the revenues and expenses associated to those gift cards. Upon the business combination, the Company assessed that the carrying value of the assumed gift card liability approximated its fair value based on historical redemption patterns and continued to recognize breakage revenue when it was estimated that likelihood of gift cards being redeemed was remote. The assumed gift card liability should have incorporated estimated future breakage, thus no breakage revenue...