LOS ANGELES – Motorcar Parts of America Inc. (MPA) announced that it has completed its internal review of certain historical accounting policies utilized by Fenwick Automotive Products Limited (Fenco) prior to the company’s acquisition in May 2011 of this previously privately held Canadian company.
As previously reported, Fenco’s accounting policies did not reflect net-of-core accounting in recording sales and cost of goods sold, as utilized by Motorcar Parts of America and in accordance with U.S. generally accepted accounting principles (GAAP). In addition, the systems required to segregate and net the core transactions accurately were inadequate and consequently delayed the company’s fiscal 2012 second quarter and third quarter filings.
The company said it would file delayed Forms 10-Q with the U.S. Securities and Exchange Commission for its fiscal 2012 second and third quarters. In a related matter, the NASDAQ Stock Market has reviewed the company’s plan for continued listing and granted the company an extension to prepare and file all delinquent financial reports.
MPA also said it continues to focus on strategic initiatives to enhance the value of the Fenco subsidiary – including the recent closure of the CV axle operation in Bedford, N.H.
