Huntington National Bank 2011 Annual Report Download - page 145

2. ACCOUNTING STANDARDS UPDATE
ASU 2011-02 — Receivables (Topic 310), A Creditor’s Determination of Whether a Restructuring Is a
Troubled Debt Restructuring. The ASU amends Subtopic 310-40 to clarify existing guidance related to a
creditor’s evaluation of whether a restructuring of debt is considered a TDR. The amendments add additional
clarity in determining whether a creditor has granted a concession and whether a debtor is experiencing financial
difficulties. The updated guidance and related disclosure requirements are effective for financial statements
issued for the first interim or annual period beginning on or after June 15, 2011, and should be applied
retroactively to the beginning of the annual period of adoption (See Note 3). The amendment did not have a
material impact on Huntington’s Consolidated Financial Statements.
ASU 2011-03 — Transfers and Servicing (Topic 860), Reconsideration of Effective Control for
Repurchase Agreements. The ASU amends Topic 860 to remove from the assessment of effective control
(1) the criterion requiring the transferor to have the ability to repurchase or redeem the financial assets on
substantially the agreed terms, even in the event of default by the transferee, and (2) the collateral maintenance
implementation guidance related to that criterion. The updated guidance and requirements are effective for
financial statements issued for the first interim or annual period beginning after December 15, 2011, and should
be applied prospectively to transactions or modifications of existing transactions that occur on or after the
effective date. Early adoption was not permitted. Management does not believe the amendment will have a
material impact on Huntington’s Consolidated Financial Statements.
ASU 2011-04 — Fair Value Measurement (Topic 820), Amendments to Achieve Common Fair Value
Measurement and Disclosure Requirements in U.S. GAAP and IFRSs. The ASU amends Topic 820 to add
both additional clarifications to existing fair value measurement and disclosure requirements and changes to
existing principles and disclosure guidance. Clarifications were made to the relevancy of the highest and best use
valuation concept, measurement of an instrument classified in an entity’s shareholder’s equity and disclosure of
quantitative information about the unobservable inputs for level 3 fair value measurements. Changes to existing
principles and disclosures included measurement of financial instruments managed within a portfolio, the
application of premiums and discounts in fair value measurement, and additional disclosures related to fair value
measurements. The updated guidance and requirements are effective for financial statements issued for the first
interim or annual period beginning after December 15, 2011, and should be applied prospectively. Early adoption
is permitted. Management does not believe the principle amendments will have a material impact on
Huntington’s Consolidated Financial Statements.
ASU 2011-05 — Other Comprehensive Income (Topic 220), Presentation of Comprehensive Income.
The ASU amends Topic 220 to require an entity the option to present the total of 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. An entity is also required to
present on the face of the financial statements reclassification adjustments for items that are reclassified from
other comprehensive income to net income in the statement(s) where the components of net income and the
components of other comprehensive income are presented. The amendments do not change items that must be
reported in other comprehensive income or when an item of other comprehensive income must be reclassified to
net income, only the format for presentation. The updated guidance and requirements are effective for financial
statements issued for the fiscal years, and the interim periods within those years, beginning after December 15,
2011. The amendments should be applied retrospectively. Early adoption is permitted. Management does not
believe the amendment will have a material impact on Huntington’s Consolidated Financial Statements.
ASU 2011-08 — Intangibles — Goodwill and Other (Topic 350): Testing Goodwill for Impairment.
The ASU amends Topic 350 to permit an entity the option to first assess qualitative factors to determine whether
it is more likely than not (50% threshold) that the fair value of a reporting unit is less than its carrying amount as
a basis for determining whether it is necessary to perform the two-step goodwill impairment test. The
amendments are effective for annual and interim goodwill impairment tests performed for fiscal years beginning
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