RESTATEMENT OF CONSOLIDATED FINANCIAL STATEMENTS

12 Months Ended

Mar. 31, 2012

RESTATEMENT OF CONSOLIDATED FINANCIAL STATEMENTS [Abstract]

RESTATEMENT OF CONSOLIDATED FINANCIAL STATEMENTS [Text Block]

2. RESTATEMENT OF CONSOLIDATED FINANCIAL STATEMENTS

During the preparation of our financial statements for the fiscal year ended March 31, 2012, we reassessed the presentation of sales of third party software assurance, maintenance and services and, after giving further consideration with respect to gross vs. net reporting, and concluded that these transactions should be presented on a net basis in accordance with Codification Topic, Revenue Recognition, Subtopic Principal Agent Considerations. We determined that we should have been considered an agent in the transaction because a third party is responsible for the day to day provision of services under the contract. This error in the determination of that status results in different accounting treatment of the revenue resulting from the sale of such third party software assurance, maintenance and services, requiring the revenue to be reported net of the associated cost of the underlying contract with the third party service provider.

Under net sales recognition, the cost paid to the third party service provider is recorded as a reduction to sales of products and services, resulting in net sales being equal to the gross profit on the transaction. The correction of this error affects our revenues and offsetting costs and expenses for the identified periods but does not affect our previously reported earnings before provision for income tax, net earnings, net earnings per common share or consolidated statement of cash flows.

The effects of this restatement are a reduction of sales of products and services of $144.5 million and $126.2 million for the costs of certain third party maintenance, software and services for the fiscal years ended March 31, 2011 and 2010, respectively, as presented in the table below (in thousands):

	Year Ended March 31,
	2011					2011		2010					2010
	As reported		Adjustments			As restated		As reported		Adjustments			As restated
Sales of product and services	$	816,813	$	(144,510	)	$	672,303	$	625,607	$	(126,248	)	$	499,359
Total revenues	$	863,025	$	(144,510	)	$	718,515	$	676,860	$	(126,248	)	$	550,612
Cost of sales, product and services	$	696,370	$	(144,510	)	$	551,860	$	537,128	$	(126,248	)	$	410,880
Total costs and expenses	$	822,457	$	(144,510	)	$	677,947	$	655,778	$	(126,248	)	$	529,530
Net earnings	$	23,727	$	-		$	23,727	$	12,745	$	-		$	12,745
Net earnings per common share - basic	$	2.89	$	-		$	2.89	$	1.54	$	-		$	1.54
Net earnings per common share - diluted	$	2.82	$	-		$	2.82	$	1.50	$	-		$	1.50

In addition, we recorded an adjustment to retained earnings as of April 1, 2009 of $385 thousand to correct an error in our revenue recognition for interim rent associated with investments in direct financing and sales-type leases. As a result, investments in leases and leased equipment - net decreased by $641 thousand and other assets increased by $256 thousand as of March 31, 2011.