Taxes Trip Up Toys ‘R’ Us Filings

Problems with internal controls over income tax accounting cause a delay in the company's annual report.
Stephen TaubMay 7, 2007

Toys ‘R’ Us warned that it will delay the filing of its annual report because of a material weakness in its internal controls over income tax accounting.

The company did not provide further details. But according to the Associated Press, spokeswoman Kathleen Waugh said the tax issue was not expected to affect the sales and profit figures released on April 26.

At that time, the company announced that it would file its annual report on May 1, noted the AP.

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The nation’s second-largest toy seller added that it has not completed the preparation of its financial statements for the quarter and full year ended February 3. The company expects to file its fiscal 2007 annual report by May 21.

Toys ‘R’ Us has been a private company since a group of buyout firms acquired the company in 2005. However, it is still required to file financial results with the Securities and Exchange Commission because some of its bonds are publicly held.