General Steel Holdings Inc. (GSI: Quote) announced that it will restate the accounting treatment for certain reimbursements received related to its collaboration with Shaanxi Iron and Steel Group, Co. Ltd. on the construction of equipment by Shaanxi Steel during the period from June 2009 to March 2011.
The company noted that it will restate its 2009 and 2010 financial statements in an amended Annual Report on Form 10-K/A for the year ended December 31, 2010 and amended quarterly reports on Form 10-Q/A for the quarters ended June 30, 2010, September 30, 2010 and March 31, 2011. Following the restatements, the Company will file its outstanding 2011 quarterly reports on Form 10-Q for the periods ended June 30, 2011, September 30, 2011 and March 31, 2012, as well as its Annual Report on Form 10-K for the year ended December 31, 2011.
While the restatement of these reimbursements has the effect of deferring recognition as income of amounts previously recognized in 2010 and the first quarter of 2011, and reflecting the added benefit of continuous recognition of sub-lease income from the reimbursement received from Shaanxi Steel in the future, the company does not expect these changes to impact its reported sales revenue or cash balances, General Steel said.
Furthermore, the restatement has no impact on the results of the company's manufacturing production, nor has the Company encountered any issues relating to the accounting treatment of historical revenue recognition. The company's management is currently evaluating and assessing the implications of this matter on the effectiveness of internal control over financial reporting.
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by RTT Staff Writer
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