Business
Biomira restates U.S. GAAP note disclosure for non-cash charges
Biomira restates U.S. GAAP note disclosure for non-cash charges.
About this update from Skrr Exploration, Inc.
[{"type":"text","content":"\n\n\n\nEDMONTON, March 2 /CNW/ - Biomira Inc. (Nasdaq: BIOM) (TSX: BRA) today\nannounced that it is restating its United States generally accepted accounting\nprinciples ("U.S. GAAP") reconciliation note in its financial statements due\nto a recent interpretation by the United States regulatory authorities of the\nU.S. accounting rules contained in the Statement of Financial Accounting\nStandards ("SFAS") 133, Accounting for Derivative Instruments and Hedging\nActivities which determines the current U.S. accounting treatment of the\nCompany's share purchase warrants.\n\n\nThe Company reports in accordance with Canadian generally accepted\naccounting principles ("Canadian GAAP") and provides note disclosure in its\nfinancial statements with respect to a reconciliation of Canadian GAAP to\nU.S. GAAP. Under Canadian GAAP, the Company's share purchase warrants are\nclassified as equity and recorded at their fair value on issuance. The\ninterpretation under U.S. GAAP requires that when a company's share purchase\nwarrants have an exercise price denominated in a currency other than a\ncompany's functional currency, those share purchase warrants must be\nclassified as liabilities at their fair value with any changes in fair value\nbeing included in the calculation of U.S. GAAP earnings. In these\ncircumstances, a loss (gain) would be recorded by a company when the value of\nthe share purchase warrants increases (decreases).\n\n\nAs a result of this interpretation, the Company will include a\nrestatement of comparative figures in the U.S. GAAP note included in its\nfinancial statements for the year ended December 31, 2006.\n\n\nThe Company's previously reported financial results under Canadian GAAP\nremain unchanged. These are non-cash charges for U.S. GAAP purposes only that\ndo not impact the Company's operations or cash flows.\n\n\nThis restatement only pertains to the Company's U.S. GAAP reconciliation\nnote disclosure, due to mark-to-market losses/gains arising from the fair\nvalue of these share purchase warrants and the classification of the warrants\nas liabilities under U.S. GAAP. The effect of the restatement under U.S. GAAP\nis as follows: a decrease in net loss of $3.1 million for the year ended\nDecember 31, 2002, a decrease in net loss of $1.5 million for the year ended\nDecember 31, 2003, an...