SCOTTSDALE, Ariz., Sept. 24, 2008 (GLOBE NEWSWIRE) -- Medicis (NYSE:MRX) today announced that the Audit Committee of its Board of Directors concluded that the Company’s financial statements for the annual, transition and quarterly periods in fiscal years 2003 through 2007 and the first and second quarters of 2008, will likely need to be restated and should no longer be relied upon as well as Ernst & Young LLP’s reports on the financial statements and effectiveness of internal control over financial reporting for the related periods. The restatement relates to a modification in the Company’s technical interpretation of the generally accepted accounting principles relating to sales return reserve calculations. The Company’s prior accounting method, with respect to sales return reserves, accrued returns at replacement cost rather than deferring the gross sales price, based on the Company’s view of the economic impact of returns on its business. In connection with the restatement, the Company is in the process of revising its reserve calculations to defer the gross sales value of the returned product.
