FORM 6-K
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
Report of Foreign Private Issuer
Pursuant to Rule 13a-16 or 15d-16 of
the Securities Exchange Act of 1934
For the period ended September 10, 1998
Yogen Fruz World-Wide Incorporated
(Translation of registrant's name into English)
8300 Woodbine Avenue, Markham, Ontario Canada L3R 9Y7
(Address of principal executive offices)
Indicate by check mark whether the registrant files or will file annual
reports under cover Form 20-F or Form 40-F.
Form 20-F _X_ Form 40-F ____
Indicate by check mark whether the registrant by furnishing the information
contained in this Form is also thereby furnishing the information to the
Commission pursuant to Rule 12g3-2(b) under the Securities Exchange Act of 1934.
Yes ____ No _X_
If "Yes" is marked, indicate below the file number assigned to the
registrant in connection with Rule 12g3-2(b):82-_________
<PAGE>
Materials relating to Registrant and filed pursuant to this Form 6-K
include:
(a) Press Release dated September 10, 1998 with respect to Registrant's
response to challenges to its accounting.
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the
registrant has duly caused this report to be signed on its behalf by the
undersigned, thereunto duly authorized.
YOGEN FRUZ WORLD-WIDE INCORPORATED
Date September 16, 1998 By /s/ Aaron Serruya
-------------------------------
Name: Aaron Serruya
Title: Executive Vice President
<PAGE>
FOR IMMEDIATE RELEASE
YOGEN FRUZ RESPONDS TO CHALLENGES TO ITS ACCOUNTING
Toronto, Canada - September 10, 1998 - In response to a wire report issued
yesterday by Dow Jones News, Yogen Fruz World-Wide Incorporated (TSE: YF.A)
announced that it stands by its revenue recognition accounting policy and
financial reporting. After reviewing the wire report with its independent
auditors, PricewaterhouseCoopers, Yogen Fruz believes that the wire report
attempts to unfairly cast doubt on the appropriateness of its revenue
recognition accounting policy and financial reporting. Yogen Fruz confirms that
any implications of improper revenue recognition or financial reporting is
wholly without merit.
The wire report attempts to criticize the revenue recognition policy of Yogen
Fruz as it relates to the sale of a certain master franchise and the financial
reporting of changes in financial position. The wire report challenges Yogen
Fruz for recognizing as income in the year ended August 31, 1997 the sale of a
master franchise agreement when Yogen Fruz did not receive the $5.5 million
proceeds of the sale during that year. Gary Stevens, the Chief Financial Officer
of Yogen Fruz stated: "Generally accepted accounting principles prescribe the
recognition of revenue at the time of the sale as long as the conditions of the
sale are met, the company has fulfilled its obligations and the collectibility
of the revenue is reasonably determinable. All of these conditions were met. In
fact, our opinion that the revenue was collectible has been justified since a
significant portion of the receivable has been subsequently collected. The
remaining receivable is now down to approximately $1 million and management's
view continues to be that the remaining receivable will be collected."
In addition, the Company notes that the report attempted to imply financial
reporting improprieties as a result of certain misclassifications in Yogen Fruz'
1995 and 1997 Statement of Changes in Financial Position. The Company confirms
that there were misclassifications but these were corrected when they were
discovered. Mr. Stevens stated: "It is not unusual for companies to reclassify
an item in comparative financial statements when the previous classification was
incorrect. In any event the amounts in question were not material to the
financial statements of Yogen Fruz. There was no impact on any number on our
balance sheet, our statement of earnings or earnings per share. Our cash and
short-term deposits are currently more than $30 million.
Mr. Stevens also noted that he has reviewed the contents of the wire report with
PricewaterhouseCoopers who have indicated to the Company that none of the issues
raised in the wire report would have caused the auditors to change their report
on the previously issued financial statements of Yogen Fruz.
The Company is of the view that the criticisms in the wire report are misplaced.
It also notes that the author of the wire report was invited to speak to the
Chief Financial Officer or one of the Co-Chief Executive Officers prior to
issuing the report and did not respond to the invitation; if he had, the Company
believes that the wire report would not have mischaracterized Yogen Fruz's
revenue recognition accounting policy and financial reporting in the manner that
it did.
For further information contact:
Gary Stevens
Chief Financial Officer
Yogen Fruz World-Wide Incorporated
Tel: 516-737-9700
Fax: 516-737-9792
