FLY Leasing Ltd.has restated its previously issued financial statements for fiscal years 2014 and2013 in response to issues raised by the SEC related to its accounting for maintenancerights associated with its acquisition of on-lease aircraft.
In line with industry practice, the company previously did notseparately identify, measure and account for maintenance rights provisions in theleases when purchasing aircraft already on lease. Following discussions with SECstaff, the company has been advised that it should separately identify, measureand account for maintenance rights. Additionally, FLY Leasing has included certainother immaterial adjustments in its restated financial statements.
In the company's three most recent fiscal years, the net impactof those items on its statements of income was to increase net income and EPS. Forfiscal year 2015, net income increased by $16.2 million, or 39 cents per share.For fiscal year 2014, net income increased by $4.1 million, or 10 cents per share.For fiscal year 2013, net income increased $1.5 million, or 5 cents per share.