JP Morgan Chase 2005 Annual Report Download - page 137

JPMorgan Chase & Co. /2005 Annual Report 135
Glossary of terms
JPMorgan Chase & Co.
SFAS 140: “Accounting for Transfers and Servicing of Financial Assets and
Extinguishments of Liabilities – a replacement of FASB Statement No. 125.”
SFAS 142: “Goodwill and Other Intangible Assets.”
SFAS 143: “Accounting for Asset Retirement Obligations.”
SFAS 149: “Amendment of Statement No. 133 on Derivative Instruments and
Hedging Activities.”
SFAS 155: “Accounting for Certain Hybrid Financial Instruments – an amend-
ment of FASB Statements No. 133 and 140.”
Staff Accounting Bulletin (“SAB”) 107: “Application of Statement of
Financial Accounting Standards No. 123 (revised 2004), Share-Based Payment.”
Statement of Position (“SOP”) 98-1: “Accounting for the Costs of
Computer Software Developed or Obtained for Internal Use.”
Stress testing: A scenario that measures market risk under unlikely but
plausible events in abnormal markets.
U.S. GAAP: Accounting principles generally accepted in the United States
of America.
U.S. government and federal agency obligations: Obligations of the
U.S. government or an instrumentality of the U.S. government whose obligations
are fully and explicitly guaranteed as to the timely payment of principal and
interest by the full faith and credit of the U.S. government.
U.S. government-sponsored enterprise obligations: Obligations of
agencies originally established or chartered by the U.S. government to serve
public purposes as specified by the U.S. Congress; these obligations are not
explicitly guaranteed as to the timely payment of principal and interest by the
full faith and credit of the U.S. government.
Value-at-Risk (“VAR”): A measure of the dollar amount of potential loss
from adverse market moves in an ordinary market environment.
Forward-looking statements
From time to time, the Firm has made and will make forward-looking state-
ments. These statements can be identified by the fact that they do not relate
strictly to historical or current facts. Forward-looking statements often use
words such as “anticipate,” “target,” “expect,” “estimate,” “intend,” “plan,”
“goal,” “believe,” “anticipate” or other words of similar meaning. Forward-
looking statements provide JPMorgan Chase’s current expectations or forecasts
of future events, circumstances, results or aspirations. JPMorgan Chase’s
disclosures in this report contain forward-looking statements within the
meaning of the Private Securities Litigation Reform Act of 1995. The Firm
also may make forward-looking statements in its other documents filed or
furnished with the Securities and Exchange Commission (“SEC”). In addition,
the Firm’s senior management may make forward-looking statements orally
to analysts, investors, representatives of the media and others.
All forward-looking statements, by their nature, are subject to risks and
uncertainties. JPMorgan Chase’s actual future results may differ materially
from those set forth in its forward-looking statements. Factors that could
cause this difference—many of which are beyond the Firm’s control—include
the following: local, regional and international business, political or economic
conditions; changes in trade, monetary and fiscal policies and laws; techno-
logical changes instituted by the Firm and by other entities which may affect
the Firm’s business; mergers and acquisitions, including the Firm’s ability to
integrate acquisitions; ability of the Firm to develop new products and services;
acceptance of new products and services and the ability of the Firm to
increase market share; ability of the Firm to control expenses; competitive
pressures; changes in laws and regulatory requirements; changes in applicable
accounting policies; costs, outcomes and effects of litigation and regulatory
investigations; changes in the credit quality of the Firm’s customers; and
adequacy of the Firm’s risk management framework.
Additional factors that may cause future results to differ materially from
forward-looking statements are discussed in Part I, Item 1A: Risk Factors
in the Firm’s Annual Report on Form 10–K for the year ended December 31,
2005, to which reference is hereby made. There is no assurance that any list
of risks and uncertainties or risk factors is complete.
Any forward-looking statements made by or on behalf of the Firm speak only
as of the date they are made and JPMorgan Chase does not undertake to
update forward-looking statements to reflect the impact of circumstances or
events that arise after the date the forward-looking statement was made. The
reader should, however, consult any further disclosures of a forward-looking
nature the Firm may make in any subsequent Annual Reports on Form 10–K,
its Quarterly Reports on Form 10-Q and its Current Reports on Form 8-K.