-----BEGIN PRIVACY-ENHANCED MESSAGE----- Proc-Type: 2001,MIC-CLEAR Originator-Name: webmaster@www.sec.gov Originator-Key-Asymmetric: MFgwCgYEVQgBAQICAf8DSgAwRwJAW2sNKK9AVtBzYZmr6aGjlWyK3XmZv3dTINen TWSM7vrzLADbmYQaionwg5sDW3P6oaM5D3tdezXMm7z1T+B+twIDAQAB MIC-Info: RSA-MD5,RSA, HRdICV5qagk+WkcdG0lDljNOzCqE1wFHREy1QrZi9NcGASF3X4r37/xFC41c6MJR MR7/9sy8xa8B2uR/5vChAw== 0000891554-98-001171.txt : 19980918 0000891554-98-001171.hdr.sgml : 19980918 ACCESSION NUMBER: 0000891554-98-001171 CONFORMED SUBMISSION TYPE: 6-K PUBLIC DOCUMENT COUNT: 1 CONFORMED PERIOD OF REPORT: 19980910 FILED AS OF DATE: 19980917 SROS: NONE FILER: COMPANY DATA: COMPANY CONFORMED NAME: YOGEN FRUZ WORLD WIDE INC CENTRAL INDEX KEY: 0001005531 STANDARD INDUSTRIAL CLASSIFICATION: ICE CREAM & FROZEN DESSERTS [2024] IRS NUMBER: 000000000 STATE OF INCORPORATION: A5 FISCAL YEAR END: 1228 FILING VALUES: FORM TYPE: 6-K SEC ACT: SEC FILE NUMBER: 000-27476 FILM NUMBER: 98710735 BUSINESS ADDRESS: STREET 1: 8300 WOODBINE AVE 5TH FL STREET 2: MARKHAM ONTARIO CITY: CANADA L3R 9Y7 STATE: A6 BUSINESS PHONE: 5167379700 MAIL ADDRESS: STREET 1: 8300 WOODBINE AVENUE STREET 2: MARKHAM ONTARIO CITY: CANADA L3R 9Y7 STATE: A6 6-K 1 REPORT OF FOREIGN PRIVATE ISSUER FORM 6-K SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 Report of Foreign Private Issuer Pursuant to Rule 13a-16 or 15d-16 of the Securities Exchange Act of 1934 For the period ended September 10, 1998 Yogen Fruz World-Wide Incorporated (Translation of registrant's name into English) 8300 Woodbine Avenue, Markham, Ontario Canada L3R 9Y7 (Address of principal executive offices) Indicate by check mark whether the registrant files or will file annual reports under cover Form 20-F or Form 40-F. Form 20-F _X_ Form 40-F ____ Indicate by check mark whether the registrant by furnishing the information contained in this Form is also thereby furnishing the information to the Commission pursuant to Rule 12g3-2(b) under the Securities Exchange Act of 1934. Yes ____ No _X_ If "Yes" is marked, indicate below the file number assigned to the registrant in connection with Rule 12g3-2(b):82-_________ Materials relating to Registrant and filed pursuant to this Form 6-K include: (a) Press Release dated September 10, 1998 with respect to Registrant's response to challenges to its accounting. SIGNATURES Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized. YOGEN FRUZ WORLD-WIDE INCORPORATED Date September 16, 1998 By /s/ Aaron Serruya ------------------------------- Name: Aaron Serruya Title: Executive Vice President FOR IMMEDIATE RELEASE YOGEN FRUZ RESPONDS TO CHALLENGES TO ITS ACCOUNTING Toronto, Canada - September 10, 1998 - In response to a wire report issued yesterday by Dow Jones News, Yogen Fruz World-Wide Incorporated (TSE: YF.A) announced that it stands by its revenue recognition accounting policy and financial reporting. After reviewing the wire report with its independent auditors, PricewaterhouseCoopers, Yogen Fruz believes that the wire report attempts to unfairly cast doubt on the appropriateness of its revenue recognition accounting policy and financial reporting. Yogen Fruz confirms that any implications of improper revenue recognition or financial reporting is wholly without merit. The wire report attempts to criticize the revenue recognition policy of Yogen Fruz as it relates to the sale of a certain master franchise and the financial reporting of changes in financial position. The wire report challenges Yogen Fruz for recognizing as income in the year ended August 31, 1997 the sale of a master franchise agreement when Yogen Fruz did not receive the $5.5 million proceeds of the sale during that year. Gary Stevens, the Chief Financial Officer of Yogen Fruz stated: "Generally accepted accounting principles prescribe the recognition of revenue at the time of the sale as long as the conditions of the sale are met, the company has fulfilled its obligations and the collectibility of the revenue is reasonably determinable. All of these conditions were met. In fact, our opinion that the revenue was collectible has been justified since a significant portion of the receivable has been subsequently collected. The remaining receivable is now down to approximately $1 million and management's view continues to be that the remaining receivable will be collected." In addition, the Company notes that the report attempted to imply financial reporting improprieties as a result of certain misclassifications in Yogen Fruz' 1995 and 1997 Statement of Changes in Financial Position. The Company confirms that there were misclassifications but these were corrected when they were discovered. Mr. Stevens stated: "It is not unusual for companies to reclassify an item in comparative financial statements when the previous classification was incorrect. In any event the amounts in question were not material to the financial statements of Yogen Fruz. There was no impact on any number on our balance sheet, our statement of earnings or earnings per share. Our cash and short-term deposits are currently more than $30 million. Mr. Stevens also noted that he has reviewed the contents of the wire report with PricewaterhouseCoopers who have indicated to the Company that none of the issues raised in the wire report would have caused the auditors to change their report on the previously issued financial statements of Yogen Fruz. The Company is of the view that the criticisms in the wire report are misplaced. It also notes that the author of the wire report was invited to speak to the Chief Financial Officer or one of the Co-Chief Executive Officers prior to issuing the report and did not respond to the invitation; if he had, the Company believes that the wire report would not have mischaracterized Yogen Fruz's revenue recognition accounting policy and financial reporting in the manner that it did. For further information contact: Gary Stevens Chief Financial Officer Yogen Fruz World-Wide Incorporated Tel: 516-737-9700 Fax: 516-737-9792 -----END PRIVACY-ENHANCED MESSAGE-----