Amtrak 2014 Annual Report Download - page 30

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National Railroad Passenger Corporation and Subsidiaries (Amtrak)
Notes to Consolidated Financial Statements (continued)
1509-1694994 22
3. Basis of Presentation and Summary of Significant Accounting Policies (continued)
In May 2014, the FASB issued ASU No. 2014-09, Revenue from Contracts with Customers,
which supersedes previous revenue recognition guidance. The new standard requires that a
company recognize revenue when it transfers promised goods or services to customers in an
amount that reflects the consideration the company expects to receive in exchange for those
goods and services. Companies will need to use more judgment and estimates than under the
guidance currently in effect, including estimating the amount of variable revenue to recognize
over each identified performance obligation. Additional disclosures will be required to help users
of financial statements understand the nature, amount and timing of revenue and cash flows
arising from the contracts. In August 2015, the FASB issued a deferral of the effective date of
this pronouncement. The new standard will become effective for the Company beginning with
the fiscal year ending September 30, 2020 and can be adopted either retrospectively to each prior
reporting period presented or as a cumulative effect adjustment as of the date of adoption. The
Company is currently evaluating the impact of adopting this new guidance on the consolidated
financial statements.
In August 2014, the FASB issued ASU No. 2014-15, Presentation of Financial Statements –
Going Concern (Subtopic 205-40). This ASU provides guidance about management’ s
responsibility to evaluate whether there is substantial doubt about an entity’ s ability to continue
as a going concern and to provide related footnote disclosures. The guidance will be effective for
the Company beginning with the fiscal year ending September 30, 2017, with early adoption
permitted. As the Company expects to continue to receive funding from the Federal Government,
Amtrak does not expect the adoption of this ASU to have a significant impact on its consolidated
statements of financial condition or results of operations.
In April 2015, the FASB issued ASU No. 2015-03, Imputation of Interest (Subtopic 835-30),
simplifying the presentation of debt issuance costs. Under the new guidance, the debt issuance
costs related to a recognized debt liability will be presented on the balance sheet as a direct
deduction from the carrying amount of that debt liability. The amortization of debt issuance costs
will continue to be included in interest expense. This guidance should be applied retrospectively
and is effective for the Company beginning with the fiscal year ending September 30, 2017, with
early adoption permitted. This ASU is not expected to have a material impact on the Company’ s
consolidated statements of financial position or results of operations.