Summary
This Form 8-K filing by Equity Residential (EQR) on December 15, 2008, primarily serves to re-issue historical financial statements in an updated format to comply with Statement of Financial Accounting Standards (SFAS) No. 144, concerning the impairment or disposal of long-lived assets. The company has reclassified the results of operations from properties sold during the first nine months of 2008 as a component of discontinued operations. This reclassification impacts previously issued annual financial statements, specifically for the three years presented in the 2007 Form 10-K that may be incorporated by reference into subsequent filings.
Key Highlights
- 1Equity Residential is reformatting historical financial statements to comply with SFAS No. 144.
- 2Properties sold in the first nine months of 2008 are now reported as discontinued operations.
- 3This reclassification affects previously issued annual financial statements (2007 Form 10-K) incorporated by reference.
- 4The reclassification does not alter previously reported net income, net income available to Common Shares, Funds from Operations (FFO), or FFO available to Common Shares and OP Units.
- 5This filing updates specific items (6, 7, 8, and Exhibit 12) of the 2007 Form 10-K.
- 6Exhibit 12 also includes interim information for the nine months ended September 30, 2008 and 2007.
Frequently Asked Questions
The primary purpose of this 8-K is to update Equity Residential's historical financial statements to comply with SFAS No. 144 regarding the accounting for impairment or disposal of long-lived assets. This involves reclassifying the results of properties sold in the first nine months of 2008 as discontinued operations.
No, the reclassification of sold properties as discontinued operations does not affect the Company's previously reported net income, net income available to Common Shares, Funds from Operations (FFO), or FFO available to Common Shares and OP Units. The change is purely an accounting presentation adjustment.
This filing specifically updates Items 6, 7, 8, and Exhibit 12 of Equity Residential's annual report on Form 10-K for the year ended December 31, 2007. It ensures that properties sold prior to the reporting periods within that 10-K are presented as discontinued operations.
In this context, 'discontinued operations' refers to the financial results (revenues, expenses, gains, or losses) of the properties that Equity Residential sold during the first nine months of 2008. Presenting them as discontinued operations separates their financial impact from the ongoing operations of the company.