Estee Lauder 2013 Annual Report Download - page 150

148 THE EST{E LAUDER COMPANIES INC.
the Company’s fiscal 2015 first quarter, with early adop-
tion permitted. The Company will apply this guidance
when it becomes effective, and the adoption of this guid-
ance is not expected to have a significant impact on its
consolidated financial statements.
In February 2013, the FASB issued authoritative guid-
ance requiring an entity to present, in a single location
either parenthetically on the face of the financial state-
ments or in a separate note, significant amounts reclassi-
fied from each component of accumulated other
comprehensive income and the income statement line
items affected by the reclassification. An entity is not per-
mitted to provide this information parenthetically on the
face of the income statement if it has items that are not
required to be reclassified in their entirety to net income.
Instead of disclosing the income statement line affected,
a cross reference to other disclosures that provide addi-
tional details on these items is required. This guidance
becomes effective prospectively for the Company’s fiscal
2014 first quarter, with early adoption permitted. The
Company will apply this new guidance when it becomes
effective, and the adoption of this guidance is not
expected to have a significant impact on its consolidated
financial statements.
In July 2012, the FASB amended its authoritative guid-
ance related to testing indefinite-lived intangible assets for
impairment. Under the revised guidance, entities testing
their indefinite-lived intangible assets for impairment have
the option of performing a qualitative assessment before
performing further impairment testing. If entities deter-
mine, on the basis of qualitative factors, that it is more-
likely-than-not that the asset is impaired, a quantitative
test is required. The guidance becomes effective in the
beginning of the Company’s fiscal 2014, with early adop-
tion permitted. The Company will apply this new guid-
ance when it becomes effective, and the adoption of this
guidance is not expected to have a significant impact on
its consolidated financial statements.
In December 2011, the FASB issued authoritative guid-
ance that creates new disclosure requirements about the
nature of an entity’s rights of offset and related arrange-
ments associated with its financial instruments and deriva-
tive instruments. This revised guidance helps reconcile
differences in the offsetting requirements under U.S.
GAAP and International Financial Reporting Standards
(“IFRS”). These requirements mandate that entities dis-
close both gross and net information about instruments
and transactions eligible for offset in the statement of
financial position as well as instruments and transactions
subject to an agreement similar to a master netting
arrangement. In January 2013, the FASB issued an update
application and early adoption permitted. The Company
is currently evaluating the timing of adoption and the
impact of this balance sheet presentation guidance but
does not expect it to have a significant impact on the
Company’s consolidated financial statements.
In March 2013, the FASB issued authoritative guidance
to resolve the diversity in practice concerning the release
of the cumulative translation adjustment (“CTA”) into net
income (i) when a parent sells a part or all of its invest-
ment in a foreign entity or no longer holds a controlling
financial interest in a subsidiary or group of assets within
a foreign entity, and (ii) in connection with a step acquisi-
tion of a foreign entity. This amended guidance requires
that CTA be released in net income only if the sale or
transfer results in the complete or substantially complete
liquidation of the foreign entity in which the subsidiary or
group of assets had resided, and that a pro rata portion of
the CTA be released into net income upon a partial sale of
an equity method investment in a foreign entity only. In
addition, the amended guidance clarifies the definition of
a sale of an investment in a foreign entity to include both,
events that result in the loss of a controlling financial inter-
est in a foreign entity and events that result in an acquirer
obtaining control of an acquiree in which it held an equity
interest immediately prior to the date of acquisition. The
CTA should be released into net income upon the occur-
rence of such events. This guidance becomes effective
prospectively for the Company’s fiscal 2015 first quarter
with early adoption permitted. The Company will apply
this new guidance when it becomes effective, and the
adoption of this guidance is not expected to have a
significant impact on its consolidated financial statements.
In February 2013, the FASB issued authoritative guid-
ance for the recognition, measurement, and disclosure of
obligations resulting from joint and several liability
arrangements for which the total amount of the obliga-
tions within the scope of this guidance is fixed at the
reporting date. It does not apply to certain obligations
that are addressed within existing guidance in U.S. GAAP.
This guidance requires an entity to measure in-scope obli-
gations with joint and several liability (e.g., debt arrange-
ments, other contractual obligations, settled litigations,
judicial rulings) as the sum of the amount the reporting
entity agreed to pay on the basis of its arrangement
among its co-obligors and any additional amount it
expects to pay on behalf of its co-obligors. In addition, an
entity is required to disclose the nature and amount of
the obligation. This guidance should be applied retro-
spectively to all prior periods for those obligations result-
ing from joint and several liability arrangements within the
scope of this guidance that exist at the beginning of