Huntington National Bank 2007 Annual Report Download - page 86

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–SEGMENT RESULTS — Accounting policies for the lines of business are the same as those used in the preparation of the
consolidated financial statements with respect to activities specifically attributable to each business line. However, the preparation
of business line results requires management to establish methodologies to allocate funding costs and benefits, expenses, and
other financial elements to each line of business. Changes are made in these methodologies utilized for certain balance sheet and
income statement allocations performed by Huntington’s management reporting system, as appropriate.
–STATEMENT OF CASH FLOWS — Cash and cash equivalents are defined as “Cash and due from banks” and “Federal funds sold and
securities purchased under resale agreements.”
2. NEW ACCOUNTING STANDARDS
STANDARDS ADOPTED IN 2007:
–FINANCIAL ACCOUNTING STANDARDS BOARD (FASB) INTERPRETATION NO. 48,
Accounting for Uncertainty in Income Taxes
(FIN 48) — In July 2006, the FASB issued FIN 48, Accounting for Uncertainty in Income Taxes. This Interpretation of FASB
Statement No. 109, Accounting for Income Taxes, contains guidance on the recognition and measurement of uncertain tax
positions. Huntington adopted FIN 48 on January 1, 2007. Huntington recognizes the impact of a tax position if it is more
likely than not that it will be sustained upon examination, based upon the technical merits of the position. The adoption of
FIN 48 was not significant to Huntington’s consolidated financial statements (See Note 17).
–FASB STATEMENT NO. 158,
Employer’s Accounting for Defined Benefit Pension and Other Postretirement Plans — an
amendment of FASB Statements No. 87, 88, 106, and 132R (Statement No. 158)
— In September 2006, the FASB issued
Statement No. 158, as an amendment to FASB Statements No. 87, 88, 106, and 132R. Huntington adopted the recognition
provisions of Statement No. 158 at December 31, 2006. In addition, Statement No. 158 requires a fiscal year end measurement
of plan assets and benefit obligations, eliminating the use of earlier measurement dates currently permissible. Huntington has
elected the “two-measurement approach” to transition to a fiscal year-end measurement date. The impact of transitioning to a
fiscal year-end measurement date on January 1, 2008, was not material to Huntington’s consolidated financial statements.
STANDARDS NOT YET FULLY ADOPTED AS OF DECEMBER 31, 2007:
–FASB STATEMENT NO. 157,
Fair Value Measurements
(Statement No. 157) — In September 2006, the FASB issued Statement
No. 157. This Statement establishes a common definition for fair value to be applied to GAAP guidance requiring use of fair
value, establishes a framework for measuring fair value, and expands disclosure about such fair value measurements. Statement
No. 157 is effective for fiscal years beginning after November 15, 2007. Huntington adopted Statement No. 157, effective
January 1, 2008. The impact of this new pronouncement was not material to Huntington’s consolidated financial statements.
–FASB STATEMENT NO. 159,
The Fair Value Option for Financial Assets and Financial Liabilitie
s (Statement No. 159) —In
February 2007, the FASB issued Statement No. 159. This Statement permits entities to choose to measure financial instruments
and certain other financial assets and financial liabilities at fair value. This Statement is effective for fiscal years beginning after
November 15, 2007. Huntington adopted Statement No. 159, effective January 1, 2008. The impact of this new pronouncement
was not material to Huntington’s consolidated financial statements.
–SECURITIES AND EXCHANGE COMMISSION (SEC) STAFF ACCOUNTING BULLETIN NO. 109,
Written Loan Commitments Recorded at Fair
Value Through Earnings
(SAB 109) — In November 2007, SEC SAB 109 was issued. SAB 109 provides the staff’s views on the
accounting for written loan commitments recorded at fair value. To make the staff’s views consistent with Statement No. 156,
Accounting for Servicing of Financial Assets, and Statement No. 159, SAB 109 revises and rescinds portions of SAB No. 105,
Application of Accounting Principles to Loan Commitments, and requires that the expected net future cash flows related to the
associated servicing of a loan should be included in the measurement of all written loan commitments that are accounted for at
fair value through earnings. The provisions of SAB 109 are applicable to written loan commitments issued or modified in fiscal
quarters beginning after December 15, 2007. The Company is currently assessing the impact this Statement will have on its
consolidated financial statements.
–FASB STATEMENT NO. 141 (REVISED 2007),
Business Combinations (Statement No. 141R)
— Statement No. 141R was issued in
December 2007. The revised statement requires an acquirer to recognize the assets acquired, the liabilities assumed, and any
noncontrolling interest in the acquiree at the acquisition date, measured at their fair values as of that date, with limited
exceptions specified in the Statement. Statement No. 141R requires prospective application for business combinations
consummated in fiscal years beginning on or after December 15, 2008. Early application is prohibited.
84
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS HUNTINGTON BANCSHARES INCORPORATED