8-KOther EventsExhibits & Filings

VERIZON COMMUNICATIONS INC 8-K Report, Corporate Update (Jul 18, 2012)

Filed July 18, 2012For Securities:VZ

Summary

Verizon Communications Inc. (VZ) filed an 8-K on July 18, 2012, primarily to report the adoption of a new accounting standard update concerning the presentation of comprehensive income. This update, implemented during the first quarter of 2012, requires all non-owner changes in stockholders' equity to be displayed either in a single continuous statement or two consecutive statements of comprehensive income. This change aims to increase the visibility of items reported within other comprehensive income. Importantly, Verizon explicitly states that this accounting change had no impact on the company's consolidated financial condition, results of operations, or cash flows. The filing includes supplemental unaudited Consolidated Statements of Comprehensive Income for the years 2011, 2010, and 2009 as an exhibit. Investors should note that this 8-K is procedural, reflecting a change in accounting presentation rather than a change in underlying financial performance or strategic direction.

Key Highlights

  • 1Verizon adopted a new accounting standard for presenting comprehensive income starting in Q1 2012.
  • 2The new standard requires changes in how comprehensive income is displayed, either in one or two consecutive statements.
  • 3This change is intended to make items in other comprehensive income more prominent.
  • 4Verizon confirmed that the accounting update has no impact on its financial condition, results of operations, or cash flows.
  • 5The filing includes supplemental unaudited Consolidated Statements of Comprehensive Income for 2011, 2010, and 2009.
  • 6This 8-K filing is a disclosure of an accounting policy change, not a report of material operational or financial events.

Frequently Asked Questions

The main purpose of this 8-K filing is to announce Verizon's adoption of a new accounting standard update regarding the presentation of comprehensive income. This is a procedural change in how financial information is displayed, not a report of new business developments or financial performance.

No, Verizon explicitly stated in the filing that this accounting standard update did not have any effect on its consolidated financial condition, results of operations, or cash flows. The change only pertains to the presentation method of comprehensive income.

Comprehensive income includes all changes in equity during a period from non-owner sources. This can include net income plus other comprehensive income items like unrealized gains or losses on certain investments. The accounting update aims to increase the prominence and clarity of these 'other comprehensive income' items for investors.

The filing includes Exhibit 99, which contains the unaudited Consolidated Statements of Comprehensive Income for Verizon for the years ended December 31, 2011, 2010, and 2009, reflecting the new presentation standard.