Financial Statements of the Bank of America Corporation Free Essay Example, 2500 words

This paper illustrates that the review of the balance sheet of Bank of America Corporation (BAC) reveals that the total assets of the corporation were $2.3 trillion as of the year ending 2010, which was an increase of 2% as compared to that of 2009. During the same period, the total liabilities of BAC also increased by 2% and rose to $2 trillion. In the year 2010, BAC implemented a fresh consolidation regulation that resulted in the desegregation and integration of certain entities in the consolidated balance sheet of BAC. These entities such as credit card trusts and multi-seller conduits among others were not formally recorded in BAC s consolidated balance sheet. The implementation of the fresh consolidation regulation resulted in a net increase in the assets by an amount of $100.4 billion and also in the growth of total liabilities by an amount of $106.7 billion. This value of the total liabilities included long-term debt worth $84.4 billion. The shareholder s equity of BAC for t he year 2010 also decreased by $3.2 billion as against that of 2009. The decrease was primarily due to expenses worth $12.4 billion owing to goodwill impairment as well as the effect of the implementation of the fresh consolidation guidance. We will write a custom essay sample on Financial Statements of the Bank of America Corporation or any topic specifically for you Only $17.96 $11.86/page