The supervisor concluded that Nurse Dufault had withdrawn medication from the Ominicell without recording an
offsetting entry for administration in the SMS system.
Under this wording glitch, pension cost would include a component for the actual return on the market value of plan assets, determined as of the end of the accounting period, without any
offsetting entry in any other component of pension cost.
These dividend receipts are presented before deduction of taxes withheld in the income account, with an
offsetting entry for taxes withheld in the unilateral transfers account.
A separate transaction is required for the
offsetting entry.
2) Additional paid-in capital includes a January 1, 2006 SAB 108 cumulative effect transition adjustment of $964,000 associated with the Company's internal review of stock option granting practices and related accounting, with an
offsetting entry to accumulated deficit.
Accordingly, the cumulative effect of the adjustment was reflected as an increase to the carrying amount of additional paid-in capital as of January 1, 2006, with an
offsetting entry to accumulated deficit.
The expense related to SICO deferred compensation will be recorded as a charge to reported earnings in the periods restated, with an
offsetting entry to additional paid-in capital reflecting amounts deemed contributed by SICO.
The effect of this error was an overstatement of accounts payable of approximately $8 million in each quarter with the
offsetting entry in cash.
