Adoption of New Accounting Standards

12 Months Ended

Dec. 31, 2017

Adoption of New Accounting Standards

Adoption of New Accounting Standard

NOTE 2: Adoption of New Accounting Standards

During the fourth quarter of 2016, the Corporation adopted ASU 2016-09 “Compensation-Stock Compensation (Topic 718): Improvements to Employer Share-Based Payment Accounting.”This ASU simplifies several aspects of the accounting for share-based payment award transactions, one of which is the recognition of excess tax benefits and deficiencies related to share-based payments, including tax benefits of dividends on share-based payment awards. Prior to the adoption of ASU 2016-09, such tax consequences were recognized as components of additional paid-in capital. With the adoption of this ASU, tax benefits and deficiencies are recognized within income tax expense. 

During the fourth quarter of 2017, the Corporation adopted ASU 2018-02 “Income Statement – Reporting Comprehensive Income (Topic 220) Reclassification of OK..Certain Tax Effects from Accumulated Other Comprehensive Income.” The amendments in this ASU provide financial statement preparers with an option to reclassify the stranded tax effects resulting from the Act from within accumulated other comprehensive income to retained earnings.  The amendments are effective for fiscal years beginning after December 15, 2018, and interim periods within those fiscal years.  Early adoption is permitted.  Therefore, the Corporation elected to recognize the reclassification of $334,000 of stranded tax effects from within accumulated other comprehensive income to retained earnings in the financial statements for the year ending December 31, 2017.