RECENT ACCOUNTING PRONOUNCEMENTS Recent Accounting Pronouncements (Policies)

9 Months Ended

Sep. 30, 2015

Recent Acconting Pronouncements [Abstract]

Description of New Accounting Pronouncements Not yet Adopted [Text Block]

Accounting Pronouncements Not Yet Adopted

In July 2015, the Financial Accounting Standards Board (FASB) amended the existing accounting standards for inventory, requiring that an entity measure inventory at the lower of cost and net realizable value. Net realizable value is the estimated selling price in the ordinary course of business, less reasonably predictable costs of completion, disposal, and transportation. The amendment applies to all inventory that is measured using a method other than last-in, first-out (LIFO) or the retail inventory method. The new guidance will be effective for the Company beginning in its first quarter of 2017 and will be applied prospectively. The adoption of this amendment is not expected to have a material impact to ITT's financial statements.

In May 2014, the FASB amended the existing accounting standards for revenue recognition. The amendments are based on the principle that revenue should be recognized 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. The guidance provides a five-step analysis of transactions to determine when and how revenue is recognized. The guidance also requires enhanced disclosures regarding the nature, amount, timing and uncertainty of revenue and cash flows arising from an entity’s contracts with customers. The new guidance will be effective for the Company beginning in its first quarter of 2018. The amendments may be applied retrospectively to each prior period presented or with the cumulative effect recognized as of the date of initial application. ITT is currently evaluating the impact of these amendments and the transition alternatives on ITT's financial statements.