Abercrombie & Fitch 2015 Annual Report Download - page 51

Table of Contents ABERCROMBIE & FITCH CO.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS — (Continued)
51
Recent accounting pronouncements
The following table provides a brief description of recent accounting pronouncements that could affect the Company's financial
statements:
Standard Description Effective Date Effect on the Financial Statements or Other Significant Matters
Standards adopted
ASU 2015-03, Simplifying the Presentation
of Debt Issuance Costs This standard amends ASC 835, Interest— Imputation of Interest. The amendment
provides guidance on the financial statement
presentation of debt issuance costs as a direct
reduction of a liability when associated with a
liability.
February 1,
2015 The adoption of this guidance impacted the Company's consolidated financial statements
by approximately $0.6 million.
ASU 2015-15, Simplifying the Presentation
of Debt Issuance Costs This standard amends ASC 835, Interest— Imputation of Interest. The amendment
provides guidance on the financial statement
presentation of debt issuance costs associated
with line-of-credit arrangements as an asset
regardless of whether there are any
outstanding borrowings on the line-of-credit
arrangement.
August 2,
2015 The adoption of this guidance did not have any impact on the Company's consolidated
financial statements.
ASU 2015-17, Income Taxes: Balance Sheet
Classification of Deferred Taxes This standard requires that deferred tax assets and liabilities be classified as noncurrent in a
classified statement of financial position.
November 1,
2015 The adoption of this standard resulted in the prospective reclassification of all current
deferred tax assets and liabilities to noncurrent
in the Company's consolidated balance sheet.
Standards not yet adopted
ASU 2014-09, Revenue from Contracts with
Customers This standard supersedes the revenue recognition requirements in "Revenue
Recognition (Topic 605)." The new ASC
guidance requires entities to recognize
revenue in a way that depicts the transfer of
promised goods or services to customers in an
amount that reflects the consideration which
the entity expects to be entitled to in exchange
for those goods or services.
February 4,
2018 The Company is currently evaluating the potential impact of this standard.
ASU 2014-15, Presentation of Financial
Statements—Going Concern This standard requires, for each annual and interim reporting period, an entity’s
management to evaluate whether there are
conditions or events, considered in the
aggregate, that raise substantial doubt about
the entity’s ability to continue as a going
concern.
January 30,
2016* The adoption of this amendment is not expected to have a material impact on the
Company's consolidated financial statements.
ASU 2015-11, Simplifying the Measurement
of Inventory This standard amends ASC 330, Inventory. This amendment applies to inventory
measured using first-in, first-out (FIFO) or
average cost. Under this amendment,
inventory should be measured at the lower of
cost and net realizable value, which is the
estimated selling price in the ordinary course
of business, less reasonably predictable costs
of completion, disposal and transportation.
January 29,
2017* The adoption of this amendment is not expected to have a material impact on the
Company's consolidated financial statements.
ASU 2016-02, Leases This standard supersedes the leasing
requirements in "Leases (Topic 840)." The
new ASC guidance requires an entity to
recognize lease assets and lease liabilities,
classified as operating leases, on the balance
sheet and disclose key leasing information that
depicts the lease rights and obligations of an
entity.
Febuary 4,
2019* The Company is currently evaluating the potential impact of this standard.
* Early adoption is permitted.