Service Properties Trust Form 8-K Summary
Business Context and Reporting Period
This Current Report on Form 8-K was filed by Service Properties Trust (SVC) on June 12, 2020. The filing addresses a change in the registrant's certifying accountant effective immediately as of the report date.
Financial Metrics
The filing text does not provide specific values for revenue, profit, cash flow, margins, debt, or liquidity. This report focuses exclusively on corporate governance regarding the independent registered public accounting firm.
Material Changes
- Appointment of New Auditor: The Audit Committee approved the engagement of Deloitte & Touche LLP as the independent registered public accounting firm, effective immediately.
- Dismissal of Prior Auditor: Ernst & Young LLP was dismissed as the independent registered public accounting firm, effective immediately.
- Audit History: The reports issued by Ernst & Young for the years ended December 31, 2018, and December 31, 2019, were unqualified and did not contain adverse opinions, disclaimers, or modifications regarding uncertainty, audit scope, or accounting principles.
Management Commentary and Risks
Management confirmed that there were no "disagreements" or "reportable events" between the company and Ernst & Young regarding accounting principles, financial statement disclosures, or auditing scope during the 2018 and 2019 audit periods or the interim period through June 12, 2020. Additionally, the company stated it did not consult with Deloitte regarding accounting principles or audit opinions prior to the engagement.
Key Facts for Investor Verification
- Verify the effective date of the transition from Ernst & Young LLP to Deloitte & Touche LLP (June 12, 2020).
- Confirm the absence of disagreements or reportable events with the former auditor as disclosed in the filing.
- Review the letter from Ernst & Young LLP (Exhibit 16.1) to ensure they concur with the statements made in this report.