A real estate investment trust run by Atlanta money manager Invesco said it will have to restate more than two years of financial results due to an accounting error tied to certain government-backed mortgage securities.
Monday, the fund, Invesco Mortgage Capital, which invests in mortgages and other securities tied to real estate, said it should have recognized part of the changes in value of some securities as regular income rather than “other comprehensive income.” The latter figure is typically reserved for things like changes in the value of pension plans and certain other assets.
Invesco said the re-stated results won’t affect much of the financial measures it reported to investors, including debt ratios and taxable income. The change impacts the fund’s financial statements for 2013, 2014 and the first quarter of this year.
Still, the change means the gains and losses on those securities will directly impact the investment fund’s previously reported profits. Companies exclude “other comprehensive income” from their reported net income, instead disclosing those results in a less prominent location on their income statements.
The Invesco fund said it plans to disclose the re-stated figures shortly before releasing its second-quarter results on Aug. 17.
