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The accrued dividends have been hardly ever paid out and ended up recorded as fairness when the BayStar repurchase transaction eventually went via in August 2004. "It turned out that recording These dividends as equity was an error. So, SCO are going to be reclassifying these dividends as current liabilities in lieu of equity." He also interviewed analyst Stacey Quandt, who raises some concerns:"'While SCO states that the pending restatement of financial statements to accurate selected accounting mistakes won't effects The online decline or earnings to the fiscal 12 months ended Oct 31, 2004,' mentioned Stacey Quandt, senior enterprise analyst With all the Robert Frances Team, 'the question stays how this restatement will effect upcoming earnings.'"One example is, because SCO expects to reclassify quantities linked to its staff stock obtain shares and to reclassify dividends from equity to present liabilities, 'a adjust from fairness to legal responsibility could have a adverse impact on SCO's foreseeable future monetary statements,' explained Quandt."Quandt also elevated the dilemma of whether or not 'SCO's settlement with its legal council [sic] to provide payment with SCO inventory instead of hard cash has any relation for the restatement of earnings.
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