| Recent Accounting Standards |
RECENT ACCOUNTING STANDARDS
The following table provides a brief description of recent accounting standards that had not yet been adopted by the Company as of December 31, 2015:
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Standard |
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Description |
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Expected Date of Adoption |
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Effect on our Consolidated Financial Statements or Other Significant Matters |
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ASU 2014-09, Revenue from Contracts with Customers (Topic 606)
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The standard amends existing revenue recognition guidance and requires an entity to recognize revenue to depict the transfer of promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services. This guidance may be early adopted beginning January 1, 2017, and may be adopted either retrospectively to each prior reporting period presented or as a cumulative-effect adjustment as of the date of adoption. |
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January 1, 2018 |
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We are currently evaluating the impact of the provisions of this guidance on our Consolidated Financial Statements and related disclosures.
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ASU 2014-15, Presentation of Financial Statements-Going Concern (Subtopic 205-40): Disclosure of Uncertainties about an Entity’s Ability to Continue as a Going Concern
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The standard requires an entity’s management to evaluate, for each reporting period, whether there are conditions and events that raise substantial doubt about the entity’s ability to continue as a going concern within one year after the financial statements are issued. Additional disclosures are required if management concludes that conditions or events raise substantial doubt about the entity’s ability to continue as a going concern. Early adoption is permitted. |
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December 31, 2016 |
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The adoption of this guidance is not expected to have an impact on our Consolidated Financial Statements or related disclosures.
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Standard |
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Description |
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Expected Date of Adoption |
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Effect on our Consolidated Financial Statements or Other Significant Matters |
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ASU 2015-02, Consolidation (Topic 810): Amendments to the Consolidation Analysis
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This amendment primarily affects asset managers and reporting entities involved with limited partnerships or similar entities, but the analysis is relevant in the evaluation of any reporting organization’s requirement to consolidate a legal entity. This guidance changes (1) the identification of variable interests, (2) the variable interest entity characteristics for a limited partnership or similar entity and (3) the primary beneficiary determination. This guidance may be early adopted, and may be adopted either retrospectively to each prior reporting period presented or as a cumulative-effect adjustment as of the date of adoption. |
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January 1, 2016 |
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The adoption of this guidance is not expected to have an impact on our Consolidated Financial Statements or related disclosures.
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ASU 2015-03, Interest - Imputation of Interest (Subtopic 835-30): Simplifying the Presentation of Debt Issuance Costs and ASU 2015-15, Presentation and Subsequent Measurement of Debt Issuance Costs Associated with Line-of-Credit Arrangements
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This standard requires debt issuance costs related to a recognized debt liability to be presented in the balance sheet as a direct deduction from the debt liability rather than as an asset. Debt issuance costs incurred in connection with line of credit arrangements may be presented as an asset and subsequently amortized ratably over the term of the line of credit arrangement. This guidance may be early adopted, and must be adopted retrospectively to each prior reporting period presented. |
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January 1, 2016 |
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Upon adoption of this standard, the balance of debt, net will be reduced by the balance of debt issuance costs, net, except for the balance related to line of credit arrangements, on our Consolidated Balance Sheets. Additionally, disclosures will be required for a change in accounting principle. |
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ASU 2015-05, Intangibles - Goodwill and Other - Internal-Use Software (Subtopic 350-40): Customer's Accounting for Fees Paid in a Cloud Computing Arrangement
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This standard clarifies the circumstances under which a cloud computing customer would account for the arrangement as a license of internal-use software. This guidance may be early adopted, and may be adopted as either retrospectively or prospectively to arrangements entered into, or materially modified, after the effective date. |
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January 1, 2016 |
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The adoption of this guidance is not expected to have an impact on our Consolidated Financial Statements or related disclosures.
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ASU 2015-11, Inventory (Topic 330): Simplifying the Measurement of Inventory
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This standard requires inventory to be measured at the lower of cost and net realizable value. Net realizable value is the estimated selling prices in the ordinary course of business, less reasonably predictable costs of completion, disposal and transportation. This guidance may be early adopted and must be adopted prospectively. |
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January 1, 2017 |
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We are currently evaluating the impact of the provisions of this guidance on our Consolidated Financial Statements and related disclosures. |
Additionally, the following table provides a brief description of a recent accounting standard that was adopted by the Company during the reporting period:
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Standard |
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Description |
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Date of Adoption |
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Effect on our Consolidated Financial Statements or Other Significant Matters |
ASU 2015-17, Income Taxes (Topic 740): Balance Sheet Classification of Deferred Taxes
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This standard requires all deferred tax assets and liabilities to be classified as non-current on the balance sheet instead of separating them between current and non-current. This guidance may be adopted either prospectively or retrospectively. |
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December 31, 2015 |
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We early adopted this guidance in the quarterly period ended December 31, 2015 on a prospective basis. There was no impact on our Consolidated Financial Statements or related disclosures upon adoption of this standard. |
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