I wonder what the total impact of the DMND restatement of financials is going to be.
From the 8K issued on 2/8/2012 (http://investing.money.msn.com/investments/sec-filings/?symbol=DMND)
Item 4.02(a). Non-Reliance on Previously Issued Financial Statements or a Related Audit Report or Completed Interim Review.
The Audit Committee of the Board of Directors (“ Audit Committee ”) of Diamond Foods, Inc. (“ Diamond ”) has substantially
completed its previously announced investigation of Diamond’s accounting for certain crop payments to walnut growers. The investigation
focused primarily on whether payments to growers in September 2011 in the amount of approximately $60 million and payments to growers in
August 2010 of approximately $20 million were accounted for in the correct periods.
On February 7, 2012, the Audit Committee concluded that such crop payments were not accounted for in the correct periods and that
Diamond’s previously issued consolidated financial statements for the fiscal years ended July 31, 2011 and July 31, 2010, the accompanying
reports of Diamond’s independent registered public accounting firm, and the previously issued unaudited condensed financial statements for
the interim quarterly periods for the fiscal year ended July 31, 2011 and the quarter ended July 31, 2010, should no longer be relied upon. In
addition, the Audit Committee determined that Diamond has one or more material weaknesses in its internal control over financial reporting.
As a result of these internal control deficiencies, Diamond’s disclosure controls and procedures were not effective as of the fiscal years ended
July 31, 2011 and 2010. The Audit Committee has discussed these matters with Diamond’s independent registered public accounting firm.
Although the Audit Committee has concluded that restatements of certain of Diamond’s previously issued financial statements will be
required as described above, additional information could be discovered as part of the ongoing investigation or in connection with the
preparation of the restated consolidated financial statements that could result in Diamond identifying additional accounting errors. Diamond is
working diligently to address control deficiencies and to complete the restatement of Diamond’s financial statements, and to file all required
periodic reports with the Securities and Exchange Commission as soon as practicable. |
