HP 2015 Annual Report Download - page 97

Table of Contents
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Balance Sheets. Net earnings attributable to the non-controlling interests are eliminated within Interest and other, net in the Consolidated Statements of
Earnings and are not presented separately as they were not material for any period presented.
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HP has made certain segment and business unit realignments in order to optimize its operating structure. Reclassifications of certain prior-year segment
and business unit financial information have been made to conform to the current-year presentation. None of the changes impacts HP's previously reported
consolidated net revenue, earnings from operations, net earnings or net earnings per share ("EPS"). See Note 2 for a further discussion of HP's segment
reorganization.
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The preparation of financial statements in accordance with U.S. GAAP requires management to make estimates and assumptions that affect the amounts
reported in HP's Consolidated Financial Statements and accompanying notes. Actual results could differ materially from those estimates.
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HP predominately uses the U.S. dollar as its functional currency. Assets and liabilities denominated in non-U.S. dollars are remeasured into U.S. dollars at
current exchange rates for monetary assets and liabilities and at historical exchange rates for nonmonetary assets and liabilities. Net revenue, costs and
expenses denominated in non-U.S. dollars are recorded in U.S. dollars at monthly average exchange rates prevailing during the period. HP includes gains or
losses from foreign currency remeasurement in Interest and other, net in the Consolidated Statements of Earnings. Certain non-U.S. subsidiaries designate the
local currency as their functional currency, and HP records the translation of their assets and liabilities into U.S. dollars at the balance sheet date as translation
adjustments and includes them as a component of Accumulated other comprehensive loss in the Consolidated Balance Sheets.
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In November 2015, the Financial Accounting Standards Board ("FASB") issued an accounting standards update for income taxes, which requires deferred
tax assets and liabilities to be classified as noncurrent in a classified statement of financial position. The new accounting guidance is effective for annual
reporting periods beginning after December 15, 2016 and interim periods therein. Early adoption is permitted for all entities as of the beginning of interim or
annual reporting periods. HP is currently assessing the impact of this adoption on its Consolidated Financial Statements, and plans to adopt for its interim
and annual reporting period beginning November 1, 2015.
In April 2015, the FASB amended the existing accounting standards for intangible assets. The amendments provide explicit guidance to customers in
determining the accounting for fees paid in a cloud computing arrangement, wherein the arrangements that do not convey a software license to the customer
are accounted for as service contracts. HP is required to adopt the guidance in the first quarter of fiscal 2017; however early adoption is permitted as is
retrospective application. HP is currently evaluating the impact of these amendments on its Consolidated Financial Statements.
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Source: HP INC, 10-K, December 16, 2015 Powered by Morningstar® Document Research℠
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