Goldman Sachs 2015 Annual Report Download - page 138

THE GOLDMAN SACHS GROUP, INC. AND SUBSIDIARIES
Notes to Consolidated Financial Statements
Repurchase-to-Maturity Transactions, Repurchase
Financings, and Disclosures (ASC 860). In June 2014,
the FASB issued ASU No. 2014-11, “Transfers and
Servicing (Topic 860) — Repurchase-to-Maturity
Transactions, Repurchase Financings, and Disclosures.”
ASU No. 2014-11 changes the accounting for repurchase-
and resale-to-maturity agreements by requiring that such
agreements be recognized as financing arrangements, and
requires that a transfer of a financial asset and a repurchase
agreement entered into contemporaneously be accounted
for separately. ASU No. 2014-11 also requires additional
disclosures about certain transferred financial assets
accounted for as sales and certain securities financing
transactions. The accounting changes and additional
disclosures about certain transferred financial assets
accounted for as sales were effective for the first interim and
annual reporting periods beginning after
December 15, 2014. The additional disclosures for certain
securities financing transactions were required for annual
reporting periods beginning after December 15, 2014 and
for interim reporting periods beginning after
March 15, 2015. Adoption of ASU No. 2014-11 did not
materially affect the firm’s financial condition, results of
operations, or cash flows.
Measuring the Financial Assets and the Financial
Liabilities of a Consolidated Collateralized Financing
Entity (ASC 810). In August 2014, the FASB issued ASU
No. 2014-13, “Consolidation (Topic 810) — Measuring
the Financial Assets and the Financial Liabilities of a
Consolidated Collateralized Financing Entity (CFE).” ASU
No. 2014-13 provides an alternative to reflect changes in
the fair value of the financial assets and the financial
liabilities of the CFE by measuring either the fair value of
the assets or liabilities, whichever is more observable. ASU
No. 2014-13 provides new disclosure requirements for
those electing this approach, and was effective for interim
and annual periods beginning after
December 15, 2015. Adoption of ASU No. 2014-13 in the
first quarter of 2016 did not materially affect the firm’s
financial condition, results of operations, or cash flows.
Amendments to the Consolidation Analysis
(ASC 810). In February 2015, the FASB issued ASU
No. 2015-02, “Consolidation (Topic 810) — Amendments
to the Consolidation Analysis.” ASU No. 2015-02
eliminates the deferral of the requirements of ASU
No. 2009-17, “Consolidations (Topic 810) —
Improvements to Financial Reporting by Enterprises
Involved with Variable Interest Entities” for certain
interests in investment funds and provides a scope
exception from Topic 810 for certain investments in money
market funds. The ASU also makes several modifications to
the consolidation guidance for VIEs and general partners’
investments in limited partnerships, as well as
modifications to the evaluation of whether limited
partnerships are VIEs or voting interest entities. ASU
No. 2015-02 is effective for interim and annual reporting
periods beginning after December 15, 2015. ASU
No. 2015-02 is required to be adopted under a modified
retrospective approach or retrospectively to all periods
presented. Early adoption was permitted. The firm adopted
ASU No. 2015-02 effective January 1, 2016, using a
modified retrospective approach. The impact of adoption
was not material (approximately $200 million on the firm’s
statement of financial condition).
Simplifying the Presentation of Debt Issuance Costs
(ASC 835). In April 2015, the FASB issued ASU No. 2015-
03, “Interest — Imputation of Interest (Subtopic 835-30) —
Simplifying the Presentation of Debt Issuance Costs.” ASU
No. 2015-03 simplifies the presentation of debt issuance
costs by requiring that these costs related to a recognized
debt liability be presented in the statement of financial
condition as a direct reduction from the carrying amount of
that liability. ASU No. 2015-03 is effective for annual
reporting periods beginning after December 15, 2015,
including interim periods within that reporting period. ASU
No. 2015-03 is required to be applied retrospectively to all
periods presented beginning in the year of adoption. Early
adoption was permitted. The firm early adopted ASU
No. 2015-03 in September 2015 and upon adoption the
impact was a reduction to both total assets and total
liabilities of $444 million. In accordance with ASU
No. 2015-03, previously reported amounts have been
conformed to the current presentation, as reflected in
Notes 13 through 16. The impact as of December 2014 was
a reduction to both total assets and total liabilities of
$398 million.
126 Goldman Sachs 2015 Form 10-K