Ally Bank 2011 Annual Report Download - page 142

Table of Contents
Notes to Consolidated Financial Statements
Ally Financial Inc. • Form 10−K
Recently Adopted Accounting Standards
Comprehensive Income − Presentation of Comprehensive Income (ASU 2011−05)
As of December 31, 2011, we early adopted Accounting Standards Update (ASU) 2011−05, which amended Accounting Standards Codification (ASC)
220, Comprehensive Income. The amendments increased the prominence of items reported in other comprehensive income and facilitated convergence
between GAAP and International Financial Reporting Standards (IFRS). This ASU required that nonowner changes in stockholders' equity be presented
either in a single continuous statement of comprehensive income or in two separate but consecutive statements. We elected to early adopt ASU 2011−05,
including the deferral permitted under ASU 2011−12 (Comprehensive Income − Deferral of the Effective Date for Amendments to the Presentation of
Reclassifications of Items Out of Accumulated Other Comprehensive Income in Accounting Standards Update No. 2011−05), by retrospective application
for the three years ended December 31, 2011, 2010, and 2009. Because this ASU impacts only presentation, there was not a material impact to our financial
condition or results of operation.
Receivables − A Creditor's Determination of Whether a Restructuring Is a Troubled Debt Restructuring (ASU 2011−02)
As of July 1, 2011, we adopted ASU 2011−02, which amends ASC 310, Receivables. ASU 2011−02 clarifies which loan modifications constitute a
TDR. It is intended to assist creditors in determining whether a modification of the terms of a receivable meets the criteria to be considered a TDR, both for
purposes of recording an impairment loss and for disclosure of TDRs. The ASU must be applied retrospectively to modifications made subsequent to the
beginning of the annual period of adoption, which for us is January 1, 2011.
ASU 2011−02 also required us to disclose the total amount of receivables and the allowance for credit losses related to those receivables that are
newly considered impaired for which impairment was previously measured under ASC 450−20, Contingencies − Loss Contingencies. Refer to Note 9 for
additional information regarding TDRs.
The adoption did not have a material impact to our consolidated financial condition or results of operations.
Receivables − Disclosures about the Credit Quality of Financing Receivables and the Allowance for Credit Losses (ASU 2010−20)
ASU 2010−20 was implemented in three distinct components as required by the ASU. Beginning with the three months ended September 30, 2011,
and in conjunction with the requirements of ASU 2011−02, the deferral of TDR related disclosures within ASU 2010−20 prescribed by ASU 2011−01,
Deferral of the Effective Date of Disclosures about Troubled Debt Restructurings in Update No. 2010−20, was ended, which required us to expand our TDR
disclosures to include more information on modifications that are classified as TDRs. Beginning with the three months ended March 31, 2011,
ASU 2010−20 required us to disclose a rollforward of the allowance for loan losses and additional activity−based disclosures for both financing receivables
and the allowance for each reporting period. We early adopted the rollforward requirement during the December 31, 2010, reporting period along with the
initial expansion of disclosures related to the credit quality of finance receivables and loans. Since the guidance relates only to disclosures, adoption of each
of the phases did not have a material impact on our consolidated financial condition or results of operations.
Revenue Recognition −Multiple−Deliverable Revenue Arrangements (ASU 2009−13)
As of January 1, 2011, we adopted ASU 2009−13, which amends ASC 605, Revenue Recognition. The guidance significantly changed the accounting
for revenue recognition in arrangements with multiple deliverables and eliminated the residual method, which allocated the discount of a multiple
deliverable arrangement among the delivered items. The guidance requires entities to allocate the total consideration to all deliverables at inception using
the relative selling price and to allocate any discount in the arrangement proportionally to each deliverable based on each deliverable's selling price. The
adoption did not have a material impact to our consolidated financial condition or results of operations.
Recently Issued Accounting Standards
Financial Services − Insurance − Accounting for Costs Associated with Acquiring or Renewing Insurance Contracts (ASU 2010−26)
In October 2010, the Financial Accounting Standards Board (FASB) issued ASU 2010−26, which amends ASC 944, Financial Services − Insurance.
The amendments in this ASU specify which costs incurred in the acquisition of new and renewal insurance contracts should be capitalized. All other
acquisition−related costs should be expensed as incurred. If the initial application of the amendments in this ASU results in the capitalization of acquisition
costs that had not been previously capitalized, an entity may elect not to capitalize those types of costs. The ASU will be effective for us on January 1, 2012
and will be applied prospectively. Both retrospective application and early adoption are permitted. The adoption will not have a material impact to our
consolidated financial condition or results of operations.
Fair Value Measurement − Amendments to Achieve Common Fair Value Measurement and Disclosure Requirements in U.S. GAAP and IFRSs (ASU
2011−04)
In May 2011, the FASB issued ASU 2011−04, which amends ASC 820, Fair Value Measurements. The amendments in this ASU clarify how to
measure fair value. It is intended to improve the comparability of fair value measurements presented and disclosed in financial statements prepared in
accordance with GAAP and IFRS. The ASU will be effective for us on January 1, 2012, and must be applied prospectively. Early adoption is not permitted.
We do not expect the adoption to have a material impact to our consolidated financial condition or results of operations.
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