PNC Bank 2006 Annual Report Download - page 77

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ITEM
7A –
QUANTITATIVE AND QUALITATIVE
DISCLOSURES ABOUT MARKET RISK
This information is set forth in the Risk Management section
of Item 7 of this Report.
ITEM
8-
FINANCIAL STATEMENTS AND
SUPPLEMENTARY DATA
R
EPORT
O
F
I
NDEPENDENT
R
EGISTERED
P
UBLIC
A
CCOUNTING
F
IRM
To the Board of Directors and Shareholders of
The PNC Financial Services Group, Inc.
Pittsburgh, Pennsylvania
We have audited the accompanying consolidated balance
sheet of The PNC Financial Services Group, Inc. and
subsidiaries (the “Company”) as of December 31, 2006 and
2005, and the related consolidated statements of income,
shareholders’ equity, and cash flows for each of the three
years in the period ended December 31, 2006. These financial
statements are the responsibility of the Company’s
management. Our responsibility is to express an opinion on
these financial statements based on our audits.
We conducted our audits in accordance with the standards of
the Public Company Accounting Oversight Board
(United States). Those standards require that we plan and
perform the audit to obtain reasonable assurance about
whether the financial statements are free of material
misstatement. An audit includes examining, on a test basis,
evidence supporting the amounts and disclosures in the
financial statements. An audit also includes assessing the
accounting principles used and significant estimates made by
management, as well as evaluating the overall financial
statement presentation. We believe that our audits provide a
reasonable basis for our opinion.
In our opinion, such consolidated financial statements present
fairly, in all material respects, the financial position of The
PNC Financial Services Group, Inc. and subsidiaries as of
December 31, 2006 and 2005, and the results of their
operations and their cash flows for each of the three years in
the period ended December 31, 2006, in conformity with
accounting principles generally accepted in the United States
of America.
As discussed in Note 1 to the consolidated financial
statements, the Company adopted Statement of Financial
Accounting Standard No. 158, “Employers’ Accounting for
Defined Benefit Pension and Other Postretirement Plans – an
amendment of FASB Statements No. 87, 88, 106, and 132(R)”
as of December 31, 2006.
As a result of the transaction discussed in Note 2 to the
consolidated financial statements, the Company no longer
consolidates BlackRock, Inc. (“BlackRock”). Beginning
September 30, 2006, the Company recognized its investment
in BlackRock using the equity method of accounting.
We have also audited, in accordance with the standards of the
Public Company Accounting Oversight Board (United States),
the effectiveness of the Company’s internal control over
financial reporting as of December 31, 2006, based on the
criteria established in Internal Control-Integrated Framework
issued by the Committee of Sponsoring Organizations of the
Treadway Commission and our report dated March 1, 2007
expressed an unqualified opinion on management’s
assessment of the effectiveness of the Company’s internal
control over financial reporting and an unqualified opinion on
the effectiveness of the Company’s internal control over
financial reporting.
/s/ Deloitte & Touche LLP
Pittsburgh, Pennsylvania
March 1, 2007
67