Business Context and Reporting Period
This Form 6-K filing by Teekay LNG Partners L.P. (the "Partnership") is dated June 6, 2011. The report discloses a change in the Partnership's independent registered public accounting firm. The decision was made by the Audit Committee of Teekay GP L.L.C. (the "Company"), the general partner of the Partnership, following a competitive request for proposal process.
Key Financial Metrics
The filing text does not provide specific financial metrics such as revenue, profit, cash flow, margins, debt, or liquidity. The document is strictly a disclosure regarding the dismissal of a previous auditor and the engagement of a new one.
Material Changes
- Dismissal of Auditor: Ernst & Young LLP ("E&Y") was dismissed as the independent registered public accounting firm effective June 1, 2011.
- Engagement of New Auditor: KPMG LLP ("KPMG") was engaged to serve as the independent registered accounting firm for the fiscal year ending December 31, 2011.
- Audit Opinions: E&Y's reports for the fiscal years ended December 31, 2009 and 2010 contained no adverse opinions, disclaimers, or qualifications regarding uncertainty, audit scope, or accounting principles.
- Disagreements: There were no disagreements with E&Y on accounting principles, practices, or auditing scope during the fiscal years 2009-2010 or the interim period through June 1, 2011.
- Reportable Events: No "reportable events" as defined in SEC Regulation S-K Item 304(a)(1)(v) occurred during the relevant periods.
Guidance, Outlook, and Risks
The filing does not contain financial guidance, outlook, or management commentary on business performance. It notes that prior to the engagement, the Partnership consulted with KPMG on complex accounting issues, including the adoption of Accounting Standards Update No. 2009-17, Statement of Accounting Standards No. 160, and Emerging Issues Task Force Issue No 07-04, as well as evaluations of variable interest entities and differences between IFRS and U.S. GAAP. Both E&Y and KPMG have provided letters agreeing with the disclosures in this report.
Investor Verification Checklist
- Verify the effective date of the auditor change (June 1, 2011).
- Confirm that no disagreements or reportable events existed with the outgoing auditor, E&Y.
- Review the specific accounting consultations conducted with the incoming auditor, KPMG, prior to engagement.
- Examine the attached letters from E&Y (Exhibit 16.1) and KPMG (Exhibit 16.2) for any additional context.