Comcast 2015 Annual Report Download - page 88

Comcast Corporation
Note 3: Recent Accounting Pronouncements
Revenue Recognition
In May 2014, the Financial Accounting Standards Board (“FASB”) updated the accounting guidance related to
revenue recognition. The updated accounting guidance provides a single, contract-based revenue recognition
model to help improve financial reporting by providing clearer guidance on when an entity should recognize
revenue, and by reducing the number of standards to which an entity has to refer. In July 2015, the FASB
voted to defer the effective date by one year to December 15, 2017 for annual reporting periods beginning
after that date. The updated accounting guidance provides companies with alternative methods of adoption.
We are currently in the process of determining the impact that the updated accounting guidance will have on
our consolidated financial statements and our method of adoption.
Consolidations
In February 2015, the FASB updated the accounting guidance related to consolidation under the variable
interest entity and voting interest entity models. The updated accounting guidance modifies the consolidation
guidance for VIEs, limited partnerships and similar legal entities. The updated guidance is effective for us as
of January 1, 2016. The updated accounting guidance provides companies with alternative methods of adop-
tion. We do not expect the updated accounting guidance to have a material impact on our consolidated
financial statements.
Debt Issuance Costs
In April 2015, the FASB updated the accounting guidance related to the balance sheet presentation of debt
issuance costs. The updated accounting guidance requires that debt issuance costs be presented as a direct
deduction from the associated debt obligation. We have adopted this guidance as of December 31, 2015 and
as a result we have reclassified unamortized debt issuance costs of $153 million as of December 31, 2014
from other noncurrent assets to a reduction of long-term debt on our consolidated balance sheet. As of
December 31, 2015, unamortized debt issuance costs included in long-term debt was $176 million.
Deferred Income Taxes
In November 2015, the FASB updated the accounting guidance related to the balance sheet presentation of
deferred taxes. The updated accounting guidance requires that all deferred tax liabilities and assets be classi-
fied as noncurrent in a classified balance sheet. The current requirement that deferred tax liabilities and
assets of a tax-paying component of an entity be offset and presented as a single amount is not affected by
the amendments in this update. We have adopted this guidance prospectively as of December 31, 2015.
Therefore, prior periods have not been adjusted to reflect this adoption. If we had retrospectively adopted this
guidance, $195 million of current deferred tax assets would have been reclassified from current assets to
long-term liabilities as of December 31, 2014.
85 Comcast 2015 Annual Report on Form 10-K