XML 39 R16.htm IDEA: XBRL DOCUMENT v3.2.0.727
Basis of Presentation and Significant Accounting Policies (Policies)
6 Months Ended
Jun. 30, 2015
Basis of Presentation and Significant Accounting Policies  
Recent Accounting Pronouncements

 

Recent Accounting Pronouncements

 

In July 2015, the FASB issued guidance which requires inventory within the scope of the standard to be measured at the lower of cost and net realizable value. Previous guidance required inventory to be measured at the lower of cost or market (where market was defined as replacement cost, with a ceiling of net realizable value and floor of net realizable value less a normal profit margin). The updated guidance is effective for interim and annual reporting periods beginning after December 15, 2016, with early adoption permitted. We expect the adoption of this guidance to have no impact on our consolidated financial statements.

 

In April 2015, the Financial Accounting Standards Board (“FASB”) issued guidance regarding a customer’s accounting for fees paid in a cloud computing arrangement.  If a cloud computing arrangement includes a software license, the customer should account for the software license element of the arrangement consistent with the acquisition of other software licenses.  If a cloud computing arrangement does not include a software license, the customer should account for the arrangement as a service contract.  This guidance is effective for fiscal years, beginning after December 15, 2015, with early adoption permitted.  We are evaluating the potential impact of this adoption on our consolidated financial statements.

 

In April 2015, the FASB issued updated guidance intended to simplify, and provide consistency to, the presentation of debt issuance costs. The new standard requires that debt issuance costs be presented in the balance sheet as a direct deduction from the carrying amount of the debt liability, consistent with debt discounts. The updated guidance is effective for interim and annual reporting periods beginning after December 15, 2015, with early adoption permitted.  We expect the adoption of this guidance to have no impact on our consolidated financial statements.

 

In February 2015, the FASB issued updated guidance which changes the analysis that a reporting entity must perform to determine whether it should consolidate certain types of legal entities.  The updated guidance is effective for interim and annual reporting periods beginning after December 15, 2015, with early adoption permitted.  We expect the adoption of this guidance to have no impact on our consolidated financial statements.

 

In June 2014, the FASB issued updated guidance intended to eliminate the diversity in practice regarding share-based payment awards that include terms which provide for a performance target that affects vesting being achieved after the requisite service period. The new standard requires that a performance target which affects vesting and could be achieved after the requisite service period be treated as a performance condition that affects vesting and should not be reflected in estimating the grant-date fair value.  The updated guidance is effective for interim and annual reporting periods beginning after December 15, 2015, with early adoption permitted.  We expect the adoption of this guidance to have no impact on our consolidated financial statements.

 

In May 2014, the FASB issued accounting guidance that provides a comprehensive new revenue recognition model.  This will supersede most of the existing revenue recognition requirements and will require entities to recognize revenue at an amount that reflects the consideration to which a company expects to be entitled in exchange for transferring goods or services to a customer.  In July 2015, the FASB deferred the effective date of this standard by one year with early adoption permitted no earlier than the original effective date.  The guidance is now effective for us beginning in the first quarter of fiscal 2017 and is not expected to have a material impact on our consolidated financial statements.