Energy Transfer 2015 Annual Report Download - page 173

Table of Contents
Certain prior year amounts have been conformed to the current year presentation. These reclassifications had no impact on net income or total equity.
Management evaluated subsequent events through the date the financial statements were issued.
The Partnership owns varying undivided interests in certain pipelines. Ownership of these pipelines has been structured as an ownership of an undivided
interest in assets, not as an ownership interest in a partnership, limited liability company, joint venture or other forms of entities. Each owner controls
marketing and invoices separately, and each owner is responsible for any loss, damage or injury that may occur to their own customers. As a result, these
undivided interests are consolidated proportionately.
2. ESTIMATES, SIGNIFICANT ACCOUNTING POLICIES AND BALANCE SHEET DETAIL:
Use of Estimates
The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported
amounts of assets and liabilities and the accrual for and disclosure of contingent assets and liabilities at the date of the financial statements and the
reported amounts of revenues and expenses during the reporting period.
The natural gas industry conducts its business by processing actual transactions at the end of the month following the month of delivery. Consequently,
the most current month’s financial results for the midstream, NGL and intrastate transportation and storage operations are estimated using volume
estimates and market prices. Any differences between estimated results and actual results are recognized in the following month’s financial statements.
Management believes that the estimated operating results represent the actual results in all material respects.
Some of the other significant estimates made by management include, but are not limited to, the timing of certain forecasted transactions that are hedged,
the fair value of derivative instruments, useful lives for depreciation and amortization, purchase accounting allocations and subsequent realizability of
intangible assets, fair value measurements used in the goodwill impairment test, market value of inventory, assets and liabilities resulting from the
regulated ratemaking process, contingency reserves and environmental reserves. Actual results could differ from those estimates.
New Accounting Pronouncements
In May 2014, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update No. 2014-09,   
   (“ASU 2014-09”), which clarifies the principles for recognizing revenue based on the core principle that an entity should
recognize revenue to depict the transfer of promised goods or services to customers in an amount that reflects the consideration to which the entity
expects to be entitled in exchange for those goods or services. In August 2015, the FASB deferred the effective date of ASU 2014-09, which is now
effective for annual reporting periods beginning after December 15, 2017, including interim periods within that reporting period. Early adoption is
permitted as of annual reporting periods beginning after December 15, 2016, including interim reporting periods within those annual periods. ASU 2014-
09 can be adopted either retrospectively to each prior reporting period presented or as a cumulative-effect adjustment as of the date of adoption. The
Partnership is currently evaluating the impact, if any, that adopting this new accounting standard will have on our revenue recognition policies.
In February 2015, the FASB issued Accounting Standards Update No. 2015-02, 
(“ASU 2015-02”), which changed the requirements for consolidation analysis. Under ASU 2015-02, reporting entities are required to evaluate whether
they should consolidate certain legal entities. ASU 2015-02 is effective for fiscal years beginning after December 15, 2015, and early adoption was
permitted. We expect to adopt this standard for the year ended December 31, 2016, and we do not anticipate a material impact to our financial position or
results of operations as a result of the adoption of this standard.
In April 2015, the FASB issued Accounting Standards Update No. 2015-03,  (“ASU 2015-03”), which
simplifies the presentation of debt issuance costs by requiring debt issuance costs related to a recognized debt liability to be presented in the balance
sheet as a direct deduction from the debt liability rather than as an asset. ASU 2015-03 is effective for annual reporting periods after December 15, 2015,
including interim periods within that reporting period, with early adoption permitted for financial statements that have not been previously issued. Upon
adoption, ASU 2015-03 must be applied retrospectively to all prior reporting period presented. We adopted and applied this standard to all consolidated
financial statements presented and there was not a material impact to our financial position or results of operations as a result of the adoption of this
standard.
In August 2015, the FASB issued ASU No. 2015-16,          
 This update requires that an acquirer recognize adjustments to provisional amounts that are identified during the measurement period in the
reporting period in which the adjustment amounts are determined.
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