Basis of Presentation

12 Months Ended

Dec. 31, 2019

Organization, Consolidation and Presentation of Financial Statements [Abstract]

Basis of Presentation

Note 2.

Basis of Presentation

These consolidated financial statements are prepared in accordance with accounting principles generally accepted in the United States (U.S. GAAP) and include the accounts of Group Inc. and all other entities in which the firm has a controlling financial interest. Intercompany transactions and balances have been eliminated.

All references to 2019, 2018 and 2017 refer to the firm’s years ended, or the dates, as the context requires, December 31, 2019, December 31, 2018 and December 31, 2017, respectively. Any reference to a future year refers to a year ending on December 31 of that year.

Beginning in the fourth quarter of 2019 and concurrent with the changes to business segments, the firm changed its balance sheet presentation to better reflect the nature of the firm’s activities. The primary changes include the elimination of the financial instruments owned and financial instruments sold, but not yet purchased line items, the introduction of new line items for trading assets, trading liabilities and investments, and the inclusion of all non-trading loans in the loans line item, reclassifying the related cash flows, where applicable. Investments and loans generally include positions held for longer-term purposes, while trading assets and liabilities generally include positions held for market-making or risk management activities. In addition, revenues from transactions in derivatives related to client advisory and underwriting assignments, previously reported in investment banking, are now reported in market making within the consolidated statements of earnings.

Reclassifications have been made to previously reported amounts to conform to the current presentation.