IBKR to Restate Financials
- Thread starter Options12
- Start date
IBKR reports negative stockholder equity for periods prior to June 7, 2012:
http://www.sec.gov/cgi-bin/viewer?a...sion_number=0001047469-12-008631&xbrl_type=v#
http://www.sec.gov/cgi-bin/viewer?a...sion_number=0001047469-12-008631&xbrl_type=v#
The structure of IB is confusing.
There are three companies at the top level.
IBG Inc (IBKR).
IBG Holdings LLC.
IBG LLC.
The financials still seem to show there is around $5 billion equity somewhere in this structure (i assume in IBG LLC) which is now stated as âredeemable noncontrolling interestsâ on the books of IBKR.
There are three companies at the top level.
IBG Inc (IBKR).
IBG Holdings LLC.
IBG LLC.
The financials still seem to show there is around $5 billion equity somewhere in this structure (i assume in IBG LLC) which is now stated as âredeemable noncontrolling interestsâ on the books of IBKR.
Stay under SIPC limits.
"The Company is in the process of completing an analysis of the restatement issues and believes that for certain prior periods reported earnings per share will be impacted. For periods subsequent to the Amendment, noncontrolling interests in LLC attributable to Holdings will be reported as a component of permanent equity, i.e., consistent with the Company's historical presentation prior to the Company's conclusion that an error had occurred. Similarly, for periods subsequent to the Amendment, our earnings per share will be reported on a basis consistent with our historical earnings per share presentation."
IBKR Corrects Prior 10-K Amendment in New Filing:
http://www.sec.gov/Archives/edgar/data/1381197/000138119712000066/ibkr_10ka.htm
The corrected footnote is included below for reference:
(4) As discussed in the Explanatory Note at the beginning of this Amended Annual Report on Form 10-K/A, the Company reassessed its historical accounting for noncontrolling interests, including its interpretation of the accounting and financial reporting that should have been applied at the time of the Companyâs initial public offering (as affected by adoption of SFAS No. 160, Noncontrolling Interests in Consolidated Financial Statements, an amendment of ARB No. 51, now a sub-topic within ASC 810-10, Consolidation, as of January 1, 2009 and as affected by ASC 480-10-S99, formerly FASB EITF Topic D-98), which required the Company to report IBG Holdings LLCâs interests in IBG LLC as redeemable noncontrolling interests, at redemption value (originally reported at book value) and separate from permanent equity. Redemption value for these redeemable noncontrolling interests is measured as the number of equivalent shares of IBG LLC member interests owned by IBG Holdings LLC multiplied by the then current market price per share of the Companyâs common stock. The excess of the redemption value over the book value of these interests, which does not affect net income attributable to common stockholders or cash flows, is required to be accounted for as a reduction of the Companyâs stockholdersâ equity in the consolidated statement of financial condition. These fair value adjustments had the effect of decreasing reported stockholdersâ equity by $1.0, $2.5, $1.9, $2.4 and $8.4 billion as of December 31, 2011, 2010, 2009, 2008 and 2007, respectively. Accordingly, the above condensed consolidated statement of financial condition information is presented as if ASC 810-10 and ASC480-10-S99 had been applied historically.
http://www.sec.gov/Archives/edgar/data/1381197/000138119712000066/ibkr_10ka.htm
The corrected footnote is included below for reference:
(4) As discussed in the Explanatory Note at the beginning of this Amended Annual Report on Form 10-K/A, the Company reassessed its historical accounting for noncontrolling interests, including its interpretation of the accounting and financial reporting that should have been applied at the time of the Companyâs initial public offering (as affected by adoption of SFAS No. 160, Noncontrolling Interests in Consolidated Financial Statements, an amendment of ARB No. 51, now a sub-topic within ASC 810-10, Consolidation, as of January 1, 2009 and as affected by ASC 480-10-S99, formerly FASB EITF Topic D-98), which required the Company to report IBG Holdings LLCâs interests in IBG LLC as redeemable noncontrolling interests, at redemption value (originally reported at book value) and separate from permanent equity. Redemption value for these redeemable noncontrolling interests is measured as the number of equivalent shares of IBG LLC member interests owned by IBG Holdings LLC multiplied by the then current market price per share of the Companyâs common stock. The excess of the redemption value over the book value of these interests, which does not affect net income attributable to common stockholders or cash flows, is required to be accounted for as a reduction of the Companyâs stockholdersâ equity in the consolidated statement of financial condition. These fair value adjustments had the effect of decreasing reported stockholdersâ equity by $1.0, $2.5, $1.9, $2.4 and $8.4 billion as of December 31, 2011, 2010, 2009, 2008 and 2007, respectively. Accordingly, the above condensed consolidated statement of financial condition information is presented as if ASC 810-10 and ASC480-10-S99 had been applied historically.