8-KFinancial EventsExhibits & Filings

MERCADOLIBRE INC 8-K Report, Auditor Change (Nov 6, 2009)

Filed November 6, 2009For Securities:MELI

Summary

MercadoLibre, Inc. (MELI) has filed an 8-K report detailing a change in its independent registered public accounting firm. Effective for the 2010 fiscal year, the Audit Committee of the Board of Directors has approved the appointment of Deloitte & Co S.R.L. as the company's new auditor. Concurrently, the company has informed its current auditor, Price Waterhouse & Co. S.R.L. (PWC), of its dismissal, which will be effective no later than the filing of the 2009 annual report. This change in auditors is a significant governance event that investors should note. The report explicitly states that there were no disagreements or reportable events with PWC during the fiscal years 2007, 2008, and the interim period through November 3, 2009. Furthermore, there were no prior consultations with Deloitte regarding accounting principles, audit opinions, disagreements, or reportable events. The company has formally notified PWC of these disclosures, and PWC's agreement letter is filed as an exhibit.

Key Highlights

  • 1MercadoLibre, Inc. (MELI) is changing its independent auditor for the 2010 fiscal year.
  • 2Deloitte & Co S.R.L. has been appointed as the new independent registered public accounting firm.
  • 3The company is dismissing its current auditor, Price Waterhouse & Co. S.R.L. (PWC).
  • 4The dismissal of PWC will be effective no later than the filing of MELI's 2009 Form 10-K.
  • 5No disagreements with PWC on accounting principles, financial statement disclosures, or auditing procedures occurred during fiscal years 2007, 2008, or the subsequent interim period.
  • 6No reportable events (as defined by Regulation S-K) were identified concerning PWC.
  • 7There were no prior consultations with Deloitte regarding accounting matters or audit opinions prior to their appointment.

Frequently Asked Questions

The filing indicates that the decision to change auditors was made by the Audit Committee of the Board of Directors and approved by them. While the specific reasons for the change are not detailed, it is presented as a routine governance decision, with assurances provided that there were no disagreements or reportable events with the outgoing auditor.

Appointing a new auditor like Deloitte, a globally recognized firm, can be part of a company's regular audit cycle or a strategic decision to bring in fresh perspectives. Investors often view auditor changes, especially to a 'Big Four' firm, as a sign of the company focusing on robust financial reporting and governance.

Based on the filing, there is no indication of problems. The report explicitly states that there were no disagreements with the former auditor, Price Waterhouse & Co. S.R.L., on any accounting principles or disclosure matters, and no reportable events occurred. The auditors' reports for previous years were also not adverse, disclaimed, qualified, or modified.

Deloitte & Co S.R.L. has been appointed as the independent auditor for the 2010 fiscal year. The dismissal of Price Waterhouse & Co. S.R.L. will be effective no later than the date MercadoLibre files its annual report on Form 10-K for the 2009 fiscal year.