What is SFAS No. 160 and why is AEP adopting it?

SFAS No. 160 is a Financial Accounting Standards Board (FASB) pronouncement that changes how companies report noncontrolling interests (interests in subsidiaries held by parties other than the parent company) in their consolidated financial statements. It requires these interests to be presented as part of equity and establishes new rules for recognizing net income and comprehensive income. AEP is adopting it to comply with updated accounting regulations.

Will this accounting change affect AEP's profitability or the value of my shares?

No, the filing explicitly states that the adoption of SFAS No. 160 has no impact on AEP's previously reported earnings per share or common shareholders' equity. This means your existing investment value and the company's reported profitability metrics remain unchanged by this accounting adjustment.

Does this filing indicate any new business developments or financial performance changes for AEP?

No, this 8-K filing is solely an update regarding the adoption of a new accounting standard. It does not report any new operational events, financial performance changes, or strategic initiatives for AEP. The company's previous disclosures from its 2008 Annual Report remain in effect, with the exception of the reclassification required by SFAS No. 160.

What subsidiaries of AEP are affected by this filing?

The filing specifically mentions that Ohio Power Company (OPCo) and Southwestern Electric Power Company (SWEPCo), along with American Electric Power Company, Inc. (AEP) itself, are affected by the adoption of SFAS No. 160. The impact on their financial reporting has been addressed.

AEP 8-K SEC Disclosure

Summary

This 8-K filing from American Electric Power Co. Inc. (AEP) on May 1, 2009, primarily serves to inform investors about the retrospective adoption of FASB's SFAS No. 160, 'Noncontrolling Interests in Consolidated Financial Statements,' effective January 1, 2009. This accounting change impacts how noncontrolling interests are presented in consolidated financial statements, requiring them to be reported within equity and establishing a new framework for recognizing net income and comprehensive income for the controlling interest. While this adoption involves a reclassification of previously reported amounts, AEP explicitly states that it has no impact on previously reported earnings per share or common shareholders' equity for AEP, Ohio Power Company (OPCo), or Southwestern Electric Power Company (SWEPCo). Essentially, this filing is a procedural update related to accounting standards. Investors should note that no material changes to the company's financial performance or equity position are being reported as a result of this adoption. All other information within AEP's 2008 Annual Reports remains unchanged, and this 8-K does not reflect events or developments after February 27, 2009, beyond the SFAS No. 160 adoption.

Key Highlights

1Adoption of SFAS No. 160: AEP has adopted the new accounting standard for noncontrolling interests, effective January 1, 2009.
2Retrospective Reclassification: The adoption requires a retrospective reclassification of amounts in the company's financial statements.
3No Impact on EPS: Crucially, the adoption of SFAS No. 160 has no impact on AEP's previously reported earnings per share.
4No Impact on Shareholder Equity: Similarly, the adoption does not affect previously reported common shareholders' equity for AEP or its subsidiaries.
5Procedural Filing: This 8-K is primarily an accounting standards update and does not report new operational or financial events.
6No Post-February 27, 2009 Events: The filing does not cover events or developments that occurred after February 27, 2009, except for the accounting standard adoption.

AMERICAN ELECTRIC POWER CO INC 8-K Report, Corporate Update (May 1, 2009)

Summary

Key Highlights

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