southall
Registered: Mar 2010
Posts: 388 |
09-02-12 09:10 AM
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 “redeemable noncontrolling interests” on the books of IBKR.
Accounting for Noncontrolling Interests in IBG LLC Attributable to IBG Holdings LLC
Subsequent to the issuance of the Company’s 2011 Annual Report on Form 10-K, the Company identified an error in its accounting for noncontrolling interests in IBG LLC attributable to IBG Holdings LLC. Previous reporting of these noncontrolling interests was as a component of permanent equity. Pursuant to ASC 810-10-45, ASC 815-40-25 and ASC 480-10-S99-3A, prior to the Amendment (Note 4), these interests were required to be accounted for and reported as “redeemable noncontrolling interests” (temporary equity). The revised accounting results in the reporting of redeemable noncontrolling interests as a separate category in the statement of financial condition, outside of total equity, and at redemption value. The excess of redemption value over book value is reported as a direct charge to stockholders’ equity (deficit). There is no effect on total assets or liabilities in the statement of financial condition, or on reported net income attributable to common stockholders..
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