Factors that Contributed to Molson Coors Co. Financial Restatement

Factors that Contributed to Molson Coors Co. Financial Restatement
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Factors that Contributed to Molson Coors Co. Financial Restatement
One of the companies that published financial restatements in 2019 is the Molson Coors Breweries co. Molson Coors breweries is a multinational brewing company that deals with the manufacturing and supply of beverages such as the blue moon and Milwaukee’s Best. Its headquarters are based in Chicago, Illinois, and it operates in more than 70 countries globally. Due to tax liabilities and GAAP violations, the company restated its fiscal statements for fiscal years 2016 and 2017 in 2019. The link to the financial restatement is /article/molson-coors-restatement-idUSL3N2073NV
The major contributing factor to the financial restatement of Molson Coors company was the accounting errors of income tax which originated from deferred tax liabilities for the fiscal years 2016 and 2017. Auditors identified these errors, and to correct them, the company had to publish financial restatement for the two fiscal years. Due to accounting errors, the deferred tax liabilities amounted to $247 million (Heller, 1).
Several other factors forced Molson Coors Breweries co. to publish a financial restatement. First, the company had maintained inaccurate books and records. The inaccurate records resulted in misstatements meant to meet analysts’ consensus earnings estimates. The errors had a significant effect on the financial reports, which is a major violation of financial reporting principles. Thus, when realized, Molson Coors breweries co. was forced to publish a financial restatement to correct the errors.
Also, the company was charged with fraudulent financial reporting for the fiscal years 2016 and 2017 by SEC, forcing the company to publish a financial restatement in February 2019. After finding out that PPG had violated antifraud provisions, they were asked to restate their financial statements to correct and prevent the company from...