SAO PAULO, May 7 /PRNewswire-FirstCall/ -- GOL Linhas Aereas Inteligentes S.A. (NYSE:GOLNYSE:andNYSE:Bovespa:NYSE:GOLL4), Brazil's low-cost airline, announces the republication of its financial statements.
During conclusion of the 2008 20-F, the report detailing the Company's annual operating and financial activities in line with the regulations of the SEC (U.S. Securities and Exchange Commission), GOL's executive officers perceived the need to adjust the financial statements in IFRS and BRGAAP, both of which were published on March 20, 2009 in Brazil and in the USA.
This occurred because the publication of the financial statements precedes the preparation of the 20-F. The adjustments in question are essentially limited to the recognition of deferred income and social contribution taxes and assets arising from sale and lease-back operations during the adoption of the new accounting practices (IFRS and Law 11638).
The main reasons that led the Company to republish its financial statements are summarized below: -- We do not make use of automation when consolidating our financial statements but adopt manual processes in spreadsheets, which may involve a considerable degree of complexity.
-- The merger with VRG and our parallel transition to IFRS led to more time and effort being spent on the preparation of our financial statements, to the detriment of the time needed to analyze the financial statement close process and the internal controls related thereto.
-- This shift in focus could not be mitigated due to the higher-than-ideal turnover of the personnel involved in the audit and the preparation of our financial statements.
The Company has already taken the necessary measures to remedy the above-mentioned questions, including improving automation procedures, and strengthening pro-active management through the installation of internal accounting and tax committees in order to keep income taxes and related deferrals, as well as all future non-habitual or non-recurring transactions under close and constant scrutiny.
Summary of the Adjustments -- Adjustment to the acquisition price of VRG, which resulted in the revision of provisions in the balance sheet and the recognition of an income tax benefit in the 2007 income statement.
-- Adjustment to deferred tax assets related to temporary differences in the accounting of aircraft leases in 2008.
-- Adjustments aimed at registering sale and leaseback assets on a gross rather than the previously reported net basis in the balance sheets.
Contact
Rodrigo Alves
5511 2128-4946
DATASOURCE: GOL Linhas Aereas Inteligentes S.A.
CONTACT: Rodrigo Alves, GOL Investor Relations, +011-5511-2128-4946
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