Freddie Mac 2014 Annual Report Download - page 163

158 Freddie Mac
following common stock equivalent shares outstanding: (a) weighted average shares related to stock options if the average
market price during the period exceeds the exercise price; and (b) the weighted-average of unvested restricted stock units.
During periods in which a net loss attributable to common stockholders has been incurred, potential common equivalent shares
outstanding are not included in the calculation because it would have an antidilutive effect. See “NOTE 11:
STOCKHOLDERS’ EQUITY — Stock-Based Compensation” for additional information on our earnings-per-share calculation.
Comprehensive Income
Comprehensive income includes all changes in equity during a period, except those resulting from investments by
stockholders. We define comprehensive income as consisting of net income (loss) plus after-tax changes in: (a) the unrealized
gains and losses on available-for-sale securities; (b) the effective portion of derivatives accounted for as cash flow hedge
relationships; and (c) defined benefit plans.
Recent Accounting Guidance
The following table provides a brief description of recent accounting pronouncements that could affect our financial
statements.
Standard Description Date of Adoption Effect on the financial statements
Recently Adopted Accounting Guidance
ASU 2014-01, Accounting for
Investments in Qualified Affordable
Housing Projects (Topic 323)
The amendment permits entities to elect to
account for their investments in qualified
affordable housing projects using the proportional
amortization method if certain conditions are met.
January 1, 2014 The adoption of this amendment did not
have a material impact on our
consolidated financial statements.
ASU 2011-04, Amendments to Achieve
Common Fair Value Measurement and
Disclosure Requirements in U.S. GAAP
and IFRSs (Topic 820)
This amendment provided: (a) clarification about
the application of existing fair value measurement
and disclosure requirements; and (b) changes to
the guidance for measuring fair value and
disclosing information about fair value
measurements.
January 1, 2012 The adoption of this amendment did not
have a material impact on our
consolidated financial statements.
ASU 2011-03, Reconsideration of
Effective Control for Repurchase
Agreements (Topic 860)
This amendment removed 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 whether the
transferor has the practical ability to perform in
accordance with those rights or obligations.
January 1, 2012 The adoption of this amendment did not
have a material impact on our
consolidated financial statements.
Recently Issued Accounting Guidance, Not Yet Adopted Within our Consolidated Financial Statements
ASU 2014-04, Reclassification of
Residential Real Estate Collateralized
Consumer Mortgage Loans upon
Foreclosure (Topic 310)
The amendment clarifies that a creditor is
considered to have received physical possession
of residential real estate property collateralizing a
consumer mortgage loan, upon either: (a) the
creditor obtaining legal title to the residential real
estate property upon completion of a foreclosure;
or (b) the borrower conveying all interest in the
residential real estate property to the creditor to
satisfy that loan through completion of a deed in
lieu of foreclosure or through a similar legal
agreement.
January 1, 2015 We do not expect that the adoption of this
amendment will have a material impact
on our consolidated financial statements.
ASU 2014-11, Repurchase-to-Maturity
Transactions, Repurchase Financings,
and Disclosures (Topic 860)
The amendment requires repurchase-to-maturity
transactions to be accounted for as secured
borrowings and requires separate accounting for a
transfer of a financial asset executed
contemporaneously with a repurchase agreement
with the same counterparty.
January 1, 2015 We do not expect that the adoption of this
amendment will have a material impact
on our consolidated financial statements.
ASU 2014-09, Revenue from Contracts
with Customers (Topic 606) The amendment requires entities to recognize revenue to depict the transfer of promised goods
or services to customers in amounts that reflect
the consideration to which the entity expects to be
entitled in exchange for those goods or services.
January 1, 2017 We are evaluating the impact that the
adoption of this amendment will have on
our consolidated financial statements
ASU 2014-14, Classification of Certain
Government-Guaranteed Mortgage
Loans upon Foreclosure (Topic 310)
The amendment requires that a mortgage loan be
de-recognized and a separate receivable be
recognized upon foreclosure if certain conditions
are met. If those conditions are met and such a
receivable is recognized, the receivable should be
measured based on the amount of principal and
interest related to the loan expected to be
recovered from the guarantor.
January 1, 2015 We do not expect that the adoption of this
amendment will have a material impact
on our consolidated financial statements.
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