This excerpt taken from the GRT 10-K filed Mar 11, 2005.
During fiscal years 2003 and 2002, the Company increased its provision for doubtful accounts to address the finalization of the billings for the tenants share of common area maintenance (CAM), real estate taxes and other recoverable expenditures incurred in prior years. Our process for recording the tenant reimbursement for CAM, real estate taxes and recoverable expenditures was evaluated at that time and improvements were made to the process to reduce the risk of significant adjustments in future periods. Based upon their significance, we have determined that these charges should have reduced the tenant reimbursement revenue recognized in prior years.
Accordingly, the Company is restating its previously issued financial statements for the fiscal years December 31, 2001 through 2003 to correct the timing by reflecting the adjustments as reductions to tenant reimbursement revenue recognized in prior years. The restatement increases net income by $9.1 million ($0.26 per diluted share) for the year ended December 31, 2003, and decreases net income by $2.7 million ($0.08 per diluted share) and $6.4 million ($0.23 per diluted share) for the years ended December 31, 2002 and 2001, respectively.
For more information relating to the restatement, see Item 8. Financial Statements-Note 21. Restatements and Note 22. Interim Financial Information (unaudited). Additionally, see Item 7. Managements Discussion and Analysis of Financial Condition and Results of Operations. For more information on the impact of the restatement on years 2001, 2002 and 2003, see Item 6. Selected Financial Data.
The Company did not amend its Annual Report on Form 10-K or Quarterly Reports on Form 10-Q for the periods affected by the restatement, and the financial statements and related financial information contained in such reports should no longer be relied upon. The Company previously disclosed its intention to restate its financial statements for such periods in a Form 8-K filed with the Securities & Exchange Commission (SEC) on February 22, 2005.
All referenced amounts in this Annual Report for prior periods and prior period comparisons reflect the balances and amounts on a restated basis.