Angiotech announces filing of audited financial results for the year ended December 31, 2007 and restatement of results for the year ended Decembe...(sbetween the 2005 income tax provision a...)

Date:3/13/2008

s between the 2005 income tax provision and the 2005 income tax returns. These errors decreased the income tax provision by $7.3 million, net deferred income tax liability by $1.9 million and current taxes payable by $5.4 million. The Company also recorded certain other adjustments related to 2006 unadjusted differences that were considered not to be material at the time the 2006 consolidated financial statements were originally prepared, but because of the restatement are now being recorded in the 2006 results. These adjustments decreased net income for 2006 by $1.2 million (net of an income tax recovery of $0.9 million). Several of these immaterial adjustments were corrected in 2007, but because of the restatement of the 2006 results, are now being reversed in the 2007 results. Years prior to 2006 were not affected by these errors.

As a result of the restatement of the 2006 results, the Company has determined that a material weakness in its internal control over financial reporting as it relates to its income tax provision existed as at December 31, 2007, because the Company did not maintain effective controls over the accounting for income taxes, including the determination and reporting of current income taxes payable, deferred tax assets and the related income tax provisions. Specifically, the Company did not have sufficient personnel to enable it to properly consider and apply generally accepted accounting principles for income taxes, review and monitor the accuracy and completeness of certain components of the income tax provision calculations and the related deferred taxes and current income taxes payable and ensure that the rationale for certain tax positions was appropriate.

As a result of this material weakness, the Company has concluded that as of December 31, 2007, the Company's internal control over financial reporting was not effective. In addition, until remediated, this material weakness could result in a future misstatement in tax-rel
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SOURCE Angiotech Pharmaceuticals, Inc. Copyright©2008 PR Newswire. All rights reserved

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