Honeywell 2013 Annual Report Download - page 81

In May 2011, the FASB issued amendments to clarify the application of existing fair value
measurements and expand existing disclosure requirements. These amendments, effective for the
interim and annual periods beginning on or after December 15, 2011 (early adoption was prohibited),
resulted in a common definition of fair value and common requirements for measurement of and
disclosure requirements between U.S. GAAP and International Financial Reporting Standards. The
implementation of the amended accounting guidance did not have a material impact on our
consolidated financial position or results of operations.
In June 2011, the FASB issued amendments to disclosure requirements for presentation of
comprehensive income. This guidance, effective retrospectively for the interim and annual periods
beginning on or after December 15, 2011 (early adoption was permitted), required presentation of total
comprehensive income, the components of net income, and the components of other comprehensive
income either in a single continuous statement of comprehensive income or in two separate but
consecutive statements. In December 2011, the FASB issued an amendment to defer the presentation
on the face of the financial statements the effects of reclassifications out of accumulated other
comprehensive income on the components of net income and other comprehensive income for annual
and interim financial statements. The implementation of the amended accounting guidance did not
have a material impact on our consolidated financial position or results of operations. In February
2013, the FASB issued amendments to disclosure requirements for presentation of comprehensive
income. The standard required presentation (either in a single note or parenthetically on the face of the
financial statements) of the effect of significant amounts reclassified from each component of
accumulated other comprehensive income based on its source and the income statement line items
affected by the reclassification. If a component was not required to be reclassified to net income in its
entirety, a cross reference to the related footnote for additional information would be required. The
amendments were effective prospectively for reporting periods beginning after December 15, 2012
(early adoption was permitted). Since these amendments to accounting guidance impacted
presentation and disclosure requirements only, their adoption did not have a material impact on our
consolidated financial position or results of operations.
In September 2011, the FASB issued amendments to the goodwill impairment guidance which
provided an option for companies to use a qualitative approach to test goodwill for impairment if certain
conditions were met. The amendments were effective for annual and interim goodwill impairment tests
performed for fiscal years beginning after December 15, 2011 (early adoption was permitted). The
implementation of the amended accounting guidance did not have a material impact on our
consolidated financial position or results of operations.
In July 2012, the FASB issued amendments to the indefinite-lived intangible asset impairment
guidance which provided an option for companies to use a qualitative approach to test indefinite-lived
intangible assets for impairment if certain conditions were met. The amendments were effective for
annual and interim indefinite-lived intangible asset impairment tests performed for fiscal years
beginning after September 15, 2012. The implementation of the amended accounting guidance did not
have a material impact on our consolidated financial position or results of operations.
In February 2013, the FASB issued amendments to guidance for obligations resulting from joint
and several liability arrangements. The amended guidance requires an entity to measure obligations
resulting from joint and several liability arrangements for which the sum of (1) the amount of the
obligation within the scope of this guidance is fixed at the reporting date, as the amount the reporting
entity agreed to pay on the basis of its arrangement among its co-obligors and (2) any additional
amount the reporting entity expects to pay on behalf of its co-obligors. The guidance also requires an
entity to disclose the nature and amount of the obligation as well as other information about those
obligations. The amendments should be applied retrospectively to all prior periods presented for
obligations within the scope of guidance that exist at the beginning of an entity’s fiscal year of adoption.
The amendments are effective for fiscal years, and interim periods within those years, beginning after
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HONEYWELL INTERNATIONAL INC.
NOTES TO FINANCIAL STATEMENTS—(Continued)
(Dollars in millions, except per share amounts)