Business Context and Reporting Period
Company: Assured Guaranty Ltd.
Filing Type: Form 8-K (Current Report)
Date of Report: April 22, 2008
Reporting Period: Effective for the quarter ended March 31, 2008.
The filing announces a change in the presentation of financial results under U.S. GAAP regarding financial guaranty contracts written in the form of credit default swap contracts.
Key Financial Metrics
This filing does not report specific numerical values for revenue, profit, cash flow, margins, debt, or liquidity. Instead, it details a reclassification of existing line items.
- Net Income: Unchanged by the reclassification.
- Shareholders' Equity: Unchanged by the reclassification.
- Reclassified Items: Revenues, expenses, assets, and liabilities associated with credit default swap contracts.
Material Changes Versus Prior Period
The material change is a presentation adjustment rather than an operational shift. The Company is reclassifying revenues and expenses for financial guaranty contracts written as credit default swaps to align with US GAAP standards effective Q1 2008.
To facilitate comparison, the Company has released revised tables showing:
- Consolidated balance sheet and income statement from Q4 2007.
- Specific income statement and balance sheet entries generated by the reclassification.
- Resulting reclassified balance sheet and income statement for 2007.
Guidance, Outlook, and Management Commentary
Management Commentary: The reclassification is intended to assist investors and analysts in understanding the impact on first-quarter 2008 results and to enable comparison with prior accounting presentations.
Additional Resources: The Company has posted revised pages from its Fourth Quarter 2007 Financial Supplement on its investor website, including Selected Financial Highlights, Consolidated Income Statement, Consolidated Balance Sheet, and Segment Consolidation data.
Risks and Contingencies: No specific new risks or contingencies are disclosed in this filing text beyond the accounting change.
Important Facts for Investor Verification
- Verify the specific impact of the reclassification on reported revenue and expense line items by reviewing the attached press release (Exhibit 99.1).
- Confirm that net income and shareholders' equity remain constant despite the presentation changes.
- Review the revised Q4 2007 financial supplement on the Company's website to compare historical data with the new accounting presentation.
- Note that this filing does not contain new operational results or guidance for future periods.