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BofA will restate its earnings back to 2002

Bank of America Corp. said Wednesday it will restate its earnings going back to 2002, resulting in a net gain of $345-million at the nation's second-largest bank.

Bank of America said the restatement adjusted the accounting of derivative transactions, which are used to offset volatility in interest rates and foreign currency. The restatements include quarterly and annual periods in 2002 through 2005, the bank said.

The revisions were made to meet reporting requirements by federal regulators, the Charlotte bank said.

"The interpretations of how to apply (this), a quite complex standard, continue to evolve," said the bank's chief financial officer, Alvaro de Molina.

A review connected with the standard also found problems with the bank's internal controls for hedge accounting. The bank said the problems have been remedied and regulators have been informed.

Bank of America said the changes will cause shareholders' equity to be adjusted upward by $308-million, or less than 1 percent.

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