8-KRegulation FD

STATE STREET CORP 8-K Report, Regulation FD Disclosure (Mar 5, 2019)

Filed March 5, 2019For Securities:STTSTT-PG

Summary

State Street Corporation (STT) announced a change in its accounting method for Low Income Housing Tax Credit (LIHTC) investments, effective for the first quarter of 2019. The company will transition from the equity method of accounting to the proportional amortization method for these investments. This change will be applied retrospectively, meaning prior periods will be revised to reflect the new accounting treatment. Investors can access revised historical financial data on State Street's Investor Relations website.

Key Highlights

  • 1State Street Corporation (STT) is changing its accounting method for LIHTC investments.
  • 2The change applies to investments in low income housing tax credit (LIHTC) investments.
  • 3The accounting method will shift from the equity method to the proportional amortization method.
  • 4The change is effective for the first quarter of 2019.
  • 5Prior financial periods will be restated to reflect this accounting change.
  • 6Revised historical financial information is available on State Street's Investor Relations website.

Frequently Asked Questions

State Street is changing its accounting method for its investments in Low Income Housing Tax Credit (LIHTC) projects. Previously accounted for using the equity method, these investments will now be accounted for using the proportional amortization method.

The change in accounting method is effective for the first quarter of 2019. State Street will also be restating prior periods to reflect this change.

Revised historical financial information reflecting this accounting change is accessible on State Street's Investor Relations website. Note that this information is provided as an inactive textual reference and is not incorporated by reference into the 8-K filing itself.

Yes, changing the accounting method for LIHTC investments will impact how revenue and net income related to these specific investments are recognized in financial statements. The proportional amortization method may lead to a different recognition pattern compared to the equity method.