Accounting error blows £1m hole in Essex Crane
Mistakes forced US company to restate 2010 finances, increasing net loss by £1.1m
AN ACCOUNTING ERROR has forced US company Essex Crane to reissue its 2010 financial statement, boosting its net loss by £1.1m.
Net deferred tax liabilities stemming from the acquisition of Coast Crane were understated by $1.8m (£1.1m), while the valuation of allowances related to net operating losses was overstated.
The error will increase basic and diluted losses per share from 59 cents to 71 cents, although the company claims the adjusted numbers have no impact on cash flow or liquidity.