Exelon 2015 Annual Report Download - page 252

Table of Contents
Combined Notes to Consolidated Financial Statements—(Continued)
(Dollars in millions, except per share data unless otherwise noted)
NPNS. The guidance is effective upon issuance and should be applied prospectively. The adoption of this guidance had no impact on the
Registrants’ Consolidated Balance Sheets, Consolidated Statements of Operations and Comprehensive Income, Consolidated Statements of Cash
Flows and disclosures.
Simplifying the Presentation of Debt Issuance Costs
In April 2015, the FASB issued authoritative guidance that changes the presentation of debt issuance costs in financial statements. The new
guidance requires entities to present such costs in the balance sheet as a direct reduction to the related debt liability rather than as a deferred cost
(i.e., an asset) as required by current guidance. The new guidance does not change the recognition or measurement of debt issuance costs. The
guidance is effective for the Registrants for fiscal years beginning after December 15, 2015. Early adoption is permitted for financial statements
that have not been previously issued. The guidance is required to be applied retrospectively to all prior periods presented. The Registrants early
adopted the standard retrospectively in the fourth quarter of 2015. The adoption of this guidance resulted in a reclassification of $157 million, $70
million, $34 million, $14 million, and $16 million as of December 31, 2014, from Other long-term assets to Long-term debt, including Long-term debt
to financing trusts, in the Consolidated Balance Sheets of Exelon, Generation, ComEd, PECO and BGE, respectively. The standard did not impact
the Consolidated Statements of Operations and Comprehensive Income and Consolidated Statements of Cash Flows of the Registrants.
In August 2015, the FASB issued clarifying authoritative guidance for debt issuance costs incurred in connection with line-of-credit
arrangements. The guidance states that an entity should defer and present debt issuance costs as an asset and subsequently amortize the
deferred debt issuance costs ratably over the term of the line-of-credit arrangement. The adoption of this guidance had no impact on the
Registrants’ Consolidated Balance Sheets, Consolidated Statements of Operations and Comprehensive Income, Consolidated Statements of Cash
Flows and disclosures.
The following recently issued accounting standards are not yet required to be reflected in the combined financial statements of the
Registrants.
Recognition and Measurement of Financial Assets and Financial Liabilities
In January 2016, the FASB issued authoritative guidance which (i) requires all investments in equity securities, including other ownership
interests such as partnerships, unincorporated joint ventures and limited liability companies, to be carried at fair value through net income,
(ii) requires an incremental recognition and disclosure requirement related to the presentation of fair value changes of financial liabilities for which
the fair value option has been elected, (iii) amends several disclosure requirements, including the methods and significant assumptions used to
estimate fair value or a description of the changes in the methods and assumptions used to estimate fair value, and (iv) requires disclosure of the
fair value of financial assets and liabilities measured at amortized cost at the amount that would be received to sell the asset or paid to transfer
the liability. The standard is effective for fiscal years beginning after December 15, 2017 with early adoption permitted. The guidance is required to
be applied retrospectively with a cumulative effect adjustment to retained earnings for initial application of the guidance at the date of adoption
(modified retrospective method). The Registrants are currently assessing the impacts this guidance may have on their Consolidated Balance
Sheets, Consolidated Statements of Operations and Comprehensive Income, Consolidated Statements of Cash Flows and disclosures as well as
the potential to early adopt the guidance.
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Source: BALTIMORE GAS & ELECTRIC CO, 10-K, February 10, 2016 Powered by Morningstar® Document Research℠
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