Business
MTY files restated financial statements for the year ended November 30, 2016 - Confirms there is no impact on cash flows and business operations
MTY files restated financial statements for the year ended November 30, 2016 - Confirms th...
About this update from Mty Food Group Inc.
[{"type":"text","content":"\n\n\n\nMTY files restated financial statements for the year ended November 30, 2016 - 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, Dec. 8, 2017\n\n\n\nMONTREAL, Dec. 8, 2017 /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 consolidated financial statements for the year ended November 30, 2016 (the \"Restated Financial Statements\") and the corresponding amended and restated management discussion and analysis.\n\nThe Company intends to file its amended and restated condensed interim consolidated financial statements for the three and nine-month periods ending August 31, 2017 and 2016 and the corresponding amended and restated management discussion and analysis within the 45-day period as previously mentioned in the November 22, 2017 press release.\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 val...