99 Cents Only Stores said on Monday that it has delayed the release of its fourth-quarter financial statement to give the company time to evaluate its lease accounting procedures. California Pizza Kitchen Inc. said it was looking at similar accounting issues.


City of Commerce-based 99 Cents Only Stores said in a statement it will announce the timing of the financial statement release at a later date, but gave no details. The company is reviewing "certain lease and deprecation issues" dealing with its method of accounting for tenant improvement allowances and landlord-provided rent holidays.


Additionally, 99 Cents Only Stores said it may be required to adjust financial statements for prior periods. Any potential adjustments will "have no significant impact on the company's cash flows, cash position, revenues or same-store sales," the company said.


A slew of retailers and restaurants have restated their earnings since Donald T. Nicolaisen, chief accountant of the Securities and Exchange Commission, sent a letter to the American Institute of Certified Public Accountants on Feb. 7 expressing concern about how companies are accounting for discounted rents, the amortization of rent payments and lessee-funded operating lease incentives.


On Monday, California Pizza Kitchen said it is assessing the letter's impact on its lease accounting. If a restatement is needed, the Los Angeles-based company said it will be made when the company issues its quarterly financial statement.


California Pizza Kitchen said any adjustments to prior financial statements are not expected to change revenues, cash balances or same-store sales.


99 Cents Only shares fell 94 cents, or 5.71 percent, to $15.51 in late trading Monday. The stock was cut to "sell" from "hold" by A.G. Edwards & Sons. California Pizza Kitchen shares fell 4 cents, or 0.2 percent, to $24.56

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