Summary
This 8-K filing from Parker-Hannifin Corporation (PH) on February 15, 2013, primarily announces a change in accounting presentation related to Comprehensive Income. Effective July 1, 2012, the company adopted new Financial Accounting Standards Board (FASB) guidance requiring a separate presentation of Comprehensive Income. This means investors will now see net income and other comprehensive income (OCI) reported on a distinct Statement of Comprehensive Income, rather than integrated within the traditional income statement. While this change alters the reporting format, it is important for investors to note that it does not change the underlying components of OCI nor the timing of reclassifications to net income. The primary impact is on how financial statements are displayed. The filing also includes an exhibit providing the unaudited Consolidated Statement of Comprehensive Income for the fiscal years ended June 30, 2012, 2011, and 2010, allowing for a comparative review of this information under the new presentation.
Key Highlights
- 1Parker-Hannifin adopted new accounting standards for the presentation of Comprehensive Income, effective July 1, 2012.
- 2The company will now present net income and other comprehensive income (OCI) in a separate Statement of Comprehensive Income.
- 3This change in presentation does not alter the items included in OCI or the rules for reclassifying OCI to net income.
- 4The filing includes unaudited Consolidated Statements of Comprehensive Income for fiscal years 2010, 2011, and 2012.
- 5The primary impact for investors is a change in financial statement format, not a change in the financial performance or underlying transactions.
- 6The provided exhibit allows for historical review of comprehensive income under the new presentation format.