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.