Capital One 2012 Annual Report Download - page 177

CAPITAL ONE FINANCIAL CORPORATION
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS—(Continued)
Transfers and Servicing: Reconsideration of Effective Control for Repurchase Agreements
In April 2011, the FASB issued an amendment to the guidance for transfers and servicing with regard to
repurchase agreements and other agreements that both entitle and obligate a transferor to repurchase or redeem
financial assets before their maturity. This amendment removes the criterion related to collateral maintenance
from the transferor’s assessment of effective control. It focuses the assessment of effective control on the
transferor’s rights and obligations with respect to the transferred financial assets and not on whether the
transferor has the practical ability to perform in accordance with those rights or obligations. Our adoption of the
amended guidance on January 1, 2012 did not have a material impact on our consolidated financial statements.
Issued but Not Yet Adopted Accounting Standards
Comprehensive Income: Reporting of Amounts Reclassified Out of Accumulated Other Comprehensive
Income
In February 2013, the FASB issued new guidance requiring an entity to report the effect of significant
reclassifications out of accumulated other comprehensive income on the respective line items in net income if the
amount being reclassified is required under U.S. GAAP to be reclassified in its entirety to net income. For other
amounts that are not required under U.S. GAAP to be reclassified in their entirety to net income in the same
reporting period, an entity is required to cross-reference other disclosures required under U.S. GAAP that provide
additional detail about those amounts. The new guidance does not change the items which must be reported in
other comprehensive income, how such items are measured or when they must be reclassified from other
comprehensive income to net income. The information must be presented either on the face of the Consolidated
Statement of Comprehensive Income or in the notes. The guidance is effective for reporting periods beginning
after December 15, 2012. Our adoption of the guidance on January 1, 2013 will have no effect on our financial
condition, results of operations or liquidity since it impacts disclosures only.
Offsetting Financial Assets and Liabilities
In December 2011, the FASB issued guidance intended to enhance current disclosure requirements on offsetting
financial assets and liabilities. The new disclosures will enable financial statement users to compare balance
sheets prepared under U.S. GAAP and IFRS, which are subject to different offsetting models. Upon adoption,
entities will be required to disclose both gross and net information about instruments and transactions eligible for
offset in the balance sheet as well as instruments and transactions subject to an agreement similar to a master
netting arrangement. The disclosures will be required irrespective of whether such instruments are presented
gross or net on the balance sheet. The guidance is effective for annual and interim reporting periods beginning on
or after January 1, 2013, with comparative retrospective disclosures required for all periods presented. Our
adoption of the guidance will have no effect on our financial condition, results of operations or liquidity since it
impacts disclosures only.
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