JP Morgan Chase Restating Cash Flow Reports on Loan Misclassifications

by Patrick Lunsford CollectionIndustry.com

JPMorgan Chase announced Thursday that it would be restating cash flow reports from 2003 through the first quarter of this year due to the misclassification of some residential mortgages and other loans.

The company said in a release that they had classified the loans as investments when it should not have. JPMorgan will now classify them as operating activities in line with accounting rules.

JPMorgan also said that the restatements will not affect the firm’s Consolidated statements of income, Consolidated balance sheets or Consolidated statements of changes in stockholders’ equity for any of the affected periods. Accordingly, the firm’s historical revenues, net income, earnings per share, total assets and regulatory capital remain unchanged.