SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 8-K
CURRENT REPORT
Pursuant to Section 13 or 15(d) of the
Securities Exchange Act of 1934
Date of Report (Date of earliest event reported) August 31, 2000
HOSOI GARDEN MORTUARY, INC.
(Exact name of registrant as specified in its charter)
Hawaii 0-2288 99-0088064
(State or other jurisdiction (Commission (IRS Employer
of incorporation) File Number) Identification No.)
30 North Kukui Street, Honolulu, Hawaii 96817
(Address of principal executive officers) (Zip Code)
Registrant's telephone number, including area code (808) 538-3877
N/A
(Former name or former address, if changed since last report.)
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Item 4 - Change of auditors:
Form 8-K, dated May 10, 2000, reported the resignation of the
independent auditor for Garden Life Plan, Ltd. (GLP), the
registrant's significant subsidiary, for GLP's year ended
May 31, 2000.
On August 31, 2000, the Directors dismissed its previous
auditor for its year ended May 31, 1999 by engaging the firm
of Nishihama & Kishida, CPA's, Inc. as its new auditors for
the fiscal years ended May 31, 1999 and May 31, 2000.
The Directors of GLP discussed with the new auditors the
disagreements on accounting principles and disclosures with
the former auditors, as reported on Form 8-K, dated May 10,
2000, as follows:
1. Revenue recognition - Whether the 30% retained by GLP of
each Prepaid Funeral Service contract sold should be
deferred until such time as the funeral services have been
performed (by the registrant) or whether the 30% should be
recognized in the year of sale.
2. Disclosure of Contingent Liability - Whether disclosure
should be made in the financial statements that GLP is
contingently liable for providing alternate funeral
services if Hosoi Garden Mortuary, Inc., the sole
servicing mortuary, is unable to perform its contractual
obligation.
In addition the following issue, which was not reported on
the Form 8-K dated May 10, 2000, was discussed with the
new auditors.
1. Consolidation of the financial statements of Garden Life
Plan, Ltd. and Garden Life Funeral Plan Trust (GLFPT). -
Whether generally accepted accounting principles require
consolidation of the financial statements of GLP and GLFPT.
The new auditor has not taken a position on the issues,
relative to the 1999 financial statements, as discussed above.
The Directors of GLP and the former auditors discussed the
issues described above in meetings on November 22, 1999 and
January 6, 2000. The views of the former auditors have been
summarized in the Form 8-K, dated May 10, 2000, previously
filed.
In a letter dated September 6, 2000 the Chief Operating Officer
and Director of GLP authorized the former auditors to respond
to the successor auditor's inquires to matters related to the
1999 audit.
<PAGE>
Pursuant to the requirement of the Securities Exchange Act of
1934, the registrant has duly caused this report to be signed
on its behalf by the undersigned hereunto duly authorized.
Hosoi Garden Mortuary, Inc.
(Registrant)
Clifford Hosoi, President
Date: August 31, 2000
