CoolBrands delays filing of financials
November 23, 2005
by Eric Schroeder
TORONTO — CoolBrands International Inc. on Wednesday said it will not meet the Nov. 29 deadline under Canadian securities legislation for the filing of its audited annual financial statements, related management's discussion and analysis and annual information form for its financial year ended Aug. 31, 2005.
The company said the delay is primarily due to three factors:
• CoolBrands has adopted, on a retroactive basis, accounting principles generally accepted in the United States. Previously, CoolBrands prepared its annual and interim consolidated financial statements in accordance with accounting principles generally accepted in Canada. In connection with this change, CoolBrands will be complying with the transition requirements set out in National Instrument 52-107—Acceptable Accounting Principles, Auditing Standards and Reporting Currency;
• The presence of difficulties in coordinating access to and review of confirmatory supporting financial data from third-party contract service providers required by CoolBrands’ external auditor. Access to this data is required in order for CoolBrands’ external auditor to complete its audit. The data relate primarily to the Breyer’s Yogurt business, which CoolBrands acquired from Kraft Foods Inc. earlier this year; and
• CoolBrands also is completing a review of the fair value of its intangible assets, such as goodwill and licenses, in order to assess the extent to which the value of such intangible assets has become impaired.
CoolBrands and its auditor expect to complete the necessary work for the financials by Dec. 13.