TORONTO, Jan 29 (Reuters) - Canadian bus-maker New Flyer Industries Inc NFI_u.TO said on Tuesday it will restate its third-quarter and year-to-date financial statements to show a fair value adjustment to its assets and liabilities.
The company said it expects the adjustment will “materially reduce” the previously reported net income for the third quarter and the first nine months of 2007 due to an expected increase in the value of net assets as of July 12, 2007.
New Flyer said that its assets and liabilities will have to be adjusted to reflect the fair value of the repurchase of class C shares of its New Flyer Holdings Inc subsidiary in connection with a public offering completed on July 12.
New Flyer said its statements had been based on the book value of its assets rather than the fair value as required by accounting guidelines.
The company said it will restate the 13-week period and 39-week period ended Sept. 30, results that were previously released on Nov. 12.
New Flyer said it does not expect that the cash flow from operating, financing and investing activities will require restatement.
The company expects to complete the restatement by no later than Feb. 6.
New Flyer shares were down 12 Canadian cents, or 1 percent, at C$11.80 after being halted on the Toronto Stock Exchange.
$1=$1.00 Canadian Reporting by Leah Schnurr; Editing by Peter Galloway