Summary
This 8-K filing from Bank of America Corporation (BAC) on February 22, 2006, announces a significant event: the company will restate its historical financial statements for multiple periods, spanning from fiscal year 2001 through the first three quarters of 2005, as well as revise the unaudited financial information for the full year and quarter ended December 31, 2005. This restatement is necessary due to issues with the accounting treatment of certain derivative transactions under Statement of Financial Accounting Standards No. 133 (SFAS 133). Investors are advised that previously issued financial statements and announced financial information for these periods should no longer be relied upon. The company expects to file the restated financial statements by March 16, 2006. Furthermore, the filing discloses a material weakness in internal controls related to the application of SFAS 133 as of December 31, 2004, though it states this weakness has since been remediated. This situation introduces uncertainty and necessitates a review of BAC's historical financial performance.
Key Highlights
- 1Bank of America will restate historical financial statements for fiscal years 2001-2004 and the first three quarters of 2005.
- 2Unaudited financial information for the quarter and year ended December 31, 2005, will also be revised.
- 3The restatements are due to accounting treatment issues with derivative transactions under SFAS 133.
- 4Previously issued financial statements and announced information for the affected periods are no longer reliable.
- 5Restated financial statements are expected to be filed by March 16, 2006.
- 6A material weakness in internal controls related to SFAS 133 application at December 31, 2004, is disclosed.
- 7The disclosed material weakness has reportedly been remediated.