Molson Coors Restates 2016, 2017 Results Due to Tax Accounting Error
(Bloomberg) -- Molson Coors says financial statements for 2017 and 2016 should be restated and no longer be relied upon, after identifying errors in the accounting for income taxes related to the deferred tax liabilities for its partnership in MillerCoors. Shares fall 3.6% in early New York trading.
- Company is restating its 2016 results to increase its deferred tax liabilities and deferred tax expense, and restating 2017 results to reflect the revaluation of such deferred liabilities due to the U.S. Tax Cuts
- Adjustments resulted in an aggregate $247.7 million increase to the deferred tax liabilities and corresponding decrease in retained earnings as of end of 2017
- Management concluded that the impact of the errors are "not material," but there had been a "material weakness" in the company’s internal control over financial reporting
- Separately, company reported 4Q underlying EPS beats estimates
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