Re: |
Chanticleer
Holdings, Inc. (the “Company”)
Form
10-Q for the quarter ended March 31, 2009, as amended
File
Number 0-29507
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Form 10-Q (Quarter
Ended March 31, 2009), As
Amended
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Financial
Statements
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and
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Note 3, Restatement,
page 9
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1.
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We
have reviewed your response to our prior comment 3 regarding the adoption
of FASB 141(R) (i.e., FASB ASC 805-10-25-23) at January 1, 2009 and the
treatment of the previously capitalized deferred acquisition
costs. We not that you view the adoption of this new standard
as a change in accounting principle as the 'accounting principle formerly
used (i.e., FASB 141) is no longer generally accepted,' however, it
appears your interpretation of this constituting a change in accounting
principle where retrospective application of the new standard is required
is not appropriate. The Staff does not view the adoption of
SFAS 141(R) to be a change in accounting principle or a change from one
generally accepted accounting principle. Rather SFAS 141(R) is
a revision of the previously issued SFAS 141 and requires prospective
application; thus upon adopting SFAS 141(R) on January 1, 2009, your
deferred acquisition costs under SFAS 141 that existed at December 31,
2008, should be immediately expensed as a current period charge to (loss)
from operations. Please revise your financial statements
accordingly. Alternatively, you may retrospectively restate the
prior period financial statements (to expense the previously capitalized
acquisition costs) for a change in accounting
policy.
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Response:
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the
Company is responsible for the adequacy and accuracy of the disclosure in
the filing;
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staff
comments or changes to disclosure in response to staff comments do not
foreclose the Commission from taking any action with respect to the
filing; and
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the
Company may not assert staff comments as a defense in any proceeding
initiated by the Commission or any person under the federal securities
laws of the United States.
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