Wonder Auto Technology, Inc., a leading manufacturer of automotive electrical, suspension parts and engine accessories in China, recently announced that it plans to restate financial results and will record a non-cash stock compensation expense of $18.3 million and $7.5 million for the fiscal years ending December 31, 2007 and December 31, 2006, respectively.

The financial statement restatement is in respect to the accounting treatment for the release of "make good" shares and the classification of restricted cash in the statement of cash flows and the restatement does not have an effect on the Company's total assets, total liabilities and total stockholders' equity, liquidity, cash resources, or future business operations. In connection with the restatement, there will be no change to the Company's previously reported shares issued and outstanding.

Additionally, the Company determined that a previously recorded decrease of restricted cash, which was used as collateral support for the Company's bills payable, should have been accounted for in cash flows from financing activities, instead of cash flow from investing activities, for the fiscal quarter ended September 30, 2008. As a result, the Company will record changes in both net cash used in investing activities and net cash provided by financing activities for the nine months ended September 30, 2008 and September 30, 2007, as well as the twelve months ended December 31, 2008, 2007 and December 31, 2006.

The respective increases and decreases in net cash used in investing activities were offset by equivalent increases or decreases in net cash provided by financing activities, resulting in no change in the Company's total net cash flow for the years ended December 31, 2008, 2007 and 2006.

Source : english.chinabuses.com

Editor : July

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Tags: China Auto Financial Statements