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ACCOUNTING AND DISCLOSURE CHANGES
 12 Months Ended
Dec. 31, 2015
ACCOUNTING AND DISCLOSURE CHANGES  
ACCOUNTING AND DISCLOSURE CHANGES

 

NOTE 2    ACCOUNTING AND DISCLOSURE CHANGES

 

Recently Issued and Adopted Accounting and Disclosure Changes

 

In November 2015, the Financial Accounting Standards Board (FASB) issued rules requiring that deferred income tax liabilities and assets be classified as noncurrent in a classified balance sheet.  These new rules will be effective for annual and interim periods beginning after December 15, 2016 and can be applied either retrospectively or prospectively with earlier application permitted.  While we are evaluating any potential impact of these rules, we currently believe the effect of the new rules will not have a material impact on our financial statements.

 

In September 2015, the FASB issued rules that require an acquirer in a business combination account for measurement-period adjustments during the period in which it determines the amount of the adjustment, rather than retrospectively.  These new rules will be effective for annual and interim periods beginning after December 15, 2015 and must be applied prospectively. We do not expect these new rules to have a material impact on our financial statements.

 

In August 2015, the FASB issued rules to defer the effective date of its new revenue recognition rules to annual and interim reporting periods beginning after December 15, 2017.  Earlier application is permitted only as of annual and interim reporting periods beginning after December 15, 2016.  While we are evaluating any potential impact of these rules, we currently believe the effect of the new rules will not have a material impact on our financial statements.

 

In July 2015, the FASB issued rules to simplify the accounting for employee benefit plans by removing the requirement for plan investments to be disaggregated by class.  Under the new guidance, a plan will disaggregate its investments measured using fair value only by general type (e.g., common stocks, corporate bonds, mutual funds).  These new rules will be effective for fiscal years beginning after December 15, 2015 and must be applied retrospectively with earlier application permitted. We do not expect these disclosure changes to have a material impact on our financial statements.

 

In July 2015, the FASB issued rules requiring entities to measure inventory at the lower of cost and net realizable value.  These new rules will be effective for annual and interim periods beginning after December 15, 2016 and must be applied prospectively with earlier application permitted. We do not expect these new rules to have a material impact on our financial statements.

 

In May 2015, the FASB issued rules to remove the requirements to categorize within the fair value hierarchy all investments for which the fair value is measured using the NAV per share practical expedient, as well as limiting the requirements for related disclosures. These rules will be effective for annual and interim periods beginning after December 15, 2015 with early adoption of the rules permitted.  We do not expect the disclosure changes to have a significant impact on our financial statements.

 

In April 2015, the FASB issued rules that require debt issuance costs related to a recognized debt liability to be presented in the balance sheet as a direct deduction from the carrying amount of that debt liability, consistent with the presentation of debt discounts. We early adopted the new rule in the first quarter of 2015 and retrospectively reclassified unamortized debt issuance costs of $68 million at December 31, 2014. The amount was previously reflected in other assets.