Ameriprise 2012 Annual Report Download - page 121

December 31, 2011
Previously Effect of
Reported Change As Adjusted
(in millions)
Assets
Deferred acquisition costs $ 4,402 $ (1,962) $ 2,440
Other assets 7,468 283 7,751
Total assets 133,986 (1,679) 132,307
Liabilities and Equity
Liabilities:
Future policy benefits and claims 31,723 (13) 31,710
Other liabilities 5,432 (399) 5,033
Total liabilities 123,025 (412) 122,613
Equity:
Retained earnings 6,983 (1,380) 5,603
Accumulated other comprehensive income, net of tax 638 113 751
Total equity 10,961 (1,267) 9,694
Total liabilities and equity 133,986 (1,679) 132,307
December 31, 2010
Previously Effect of
Reported Change As Adjusted
(in millions)
Retained earnings $ 6,190 $ (1,420) $ 4,770
Accumulated other comprehensive income, net of tax 565 85 650
Total equity 11,285 (1,335) 9,950
January 1, 2010
Previously Effect of
Reported Change As Adjusted
(in millions)
Retained earnings $ 5,276 $ (1,312) $ 3,964
Accumulated other comprehensive income, net of tax 265 40 305
Total equity 9,872 (1,272) 8,600
2. Summary of Significant Accounting Policies
Principles of Consolidation
The Company consolidates entities in which it holds a greater than 50% voting interest, or when certain conditions are met
for VIEs and limited partnerships. Entities in which the Company exercises significant influence or holds a greater than 20%
but less than 50% voting interest are accounted for under the equity method. All other investments that are not reported
at fair value as trading or Available-for-Sale securities are accounted for under the cost method where the Company owns
less than a 20% voting interest and does not exercise significant influence.
A VIE is an entity that either has equity investors that lack certain essential characteristics of a controlling financial interest
(including substantive voting rights, the obligation to absorb the entity’s losses, or the rights to receive the entity’s returns)
or has equity investors that do not provide sufficient financial resources for the entity to support its activities. A VIE is
required to be assessed for consolidation under two models:
• If the VIE is a money market fund or is an investment company, or has the financial characteristics of an investment
company, and the following is true:
(i) the entity does not have an explicit or implicit obligation to fund the investment company’s losses; and
(ii) the investment company is not a securitization entity, asset backed financing entity, or an entity formally
considered a qualifying special purpose entity,
then, the VIE will be consolidated by the entity that determines it stands to absorb a majority of the VIE’s expected
losses or to receive a majority of the VIE’s expected residual returns. Examples of entities that are likely to be
assessed for consolidation under this framework include hedge funds, property funds, private equity funds and venture
capital funds.
• If the VIE does not meet the criteria above, the VIE will be consolidated by the entity that determines it has both:
(i) the power to direct the activities of the VIE that most significantly impact the VIE’s economic performance; and
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