INTL FCStone 2013 Annual Report Download - page 93

INTLFCSTONEINC.Form10K72
PART II
ITEM 8Financial Statements and Supplementary Data
Recent Accounting Pronouncements
In June 2011, the Financial Accounting Standards Board (“FASB”)
issued new guidance on the presentation of comprehensive income.
is guidance eliminates the option to report comprehensive
income and its components in the consolidated statement of
stockholders’ equity. Under this guidance, an entity can elect
to present items of net income and comprehensive income in
one continuous statement or in two separate, but consecutive,
statements. In addition, the guidance requires entities to
show the eects of items reclassied from accumulated other
comprehensive loss to net income on the face of the nancial
statements. is guidance is eective for scal years beginning after
December15,2011 and interim and annual periods thereafter.
Early adoption is permitted, but full retrospective application
is required. is guidance was eective for the Company’s scal
year 2013. e adoption of this guidance resulted in a change
in the presentation of comprehensive income in the Company’s
consolidated nancial statements.
In December 2011, the FASB issued new guidance on the
disclosures about osetting assets and liabilities. While the FASB
retained the existing osetting models under U.S. GAAP, the
new standard requires disclosures to allow investors to better
compare and understand signicant quantitative dierences
in nancial statements prepared under U.S. GAAP. e new
standard is eective for annual periods beginning on or after
January 1, 2013, and interim periods within those annual periods.
Retrospective application is required. is guidance is eective
for the Company’s scal year beginning October 1, 2013. e
Company expects to adopt this guidance starting with the rst
quarter of scal year 2014. e adoption of this guidance is
expected to change some of the Company’s disclosures in the
notes to its consolidated nancial statements.
In July 2012, the FASB issued nal guidance on indenite-
lived intangible assets impairment testing. Under the guidance,
entities testing indenite-lived intangibles for impairment
have the option of rst performing a qualitative assessment to
determine whether it is more likely than not that an indenite-
lived intangible asset is impaired. If a company determines that
it is more likely than not that the fair value of such an asset
exceeds its carrying amount, it would not need to calculate the fair
value of the asset in that year. However, if a company concludes
otherwise, it must calculate the fair value of the asset, compare
that value with its carrying amount and record an impairment
charge, if any. e guidance does not revise the requirement to
test indenite-lived intangible assets annually for impairment.
In addition, the guidance does not amend the requirement to
test indenite-lived intangible assets for impairment between
annual tests if events or circumstances warrant, however, it
does revise the examples of events and circumstances that an
entity should consider. e guidance is eective for annual and
interim impairment tests performed for scal years beginning
after September 15,2012. Early adoption is permitted. e
Company adopted this guidance and it did not have a material
impact on the Company’s consolidated nancial statements.
In February 2013, the FASB issued Accounting Standards Update
(“ASU”) No. 2013-02, Reporting of Amounts Reclassied Out
of Accumulated Other Comprehensive Income requiring new
disclosures regarding reclassication adjustments from accumulated
other comprehensive income (“AOCI”). ASU No. 2013-02 requires
disclosure of amounts reclassied out of AOCI by component.
In addition, the entity is required to present, either on the face
of the statement where net income is presented or the notes,
signicant amounts reclassied out of AOCI by the respective
line items of net income. e Company expects to adopt this
guidance starting with the rst quarter of scal year 2014. e
adoption of this guidance is not expected to have a material
impact on the Company’s consolidated nancial statements.
In March 2013, the FASB issued ASU No. 2013-05, Parent’s
Accounting for the Cumulative Translation Adjustment upon
Derecognition of Certain Subsidiaries or Groups of Assets
within a Foreign Entity or of an Investment in a Foreign Entity,
which addresses the accounting for the cumulative translation
adjustment when a parent either sells part or all of its investment
in a foreign entity or no longer holds a controlling nancial
interest in a subsidiary or group of assets that is a nonprot
activity or a business within a foreign entity. For public entities,
the ASU is eective prospectively for scal years, and interim
periods, within those years, beginning after December 15, 2013.
Early adoption is permitted. e Company expects to adopt
this guidance starting with the rst quarter of scal year 2015.
e adoption of this guidance is not expected to have a material
impact on the Company’s consolidated nancial statements.
In July 2013, the FASB issued ASUNo. 2013-11, Presentation
of an Unrecognized Tax Benet When a Net Operating Loss
Carryforward, a Similar Tax Loss, or a Tax Credit Carryforward
Exists. is ASU provides that an unrecognized tax benet, or a
portion thereof, should be presented in the nancial statements
as a reduction to a deferred tax asset for a net operating loss
carryforward, a similar tax loss, or a tax credit carryforward,
except to the extent that a net operating loss carryforward, a
similar tax loss, or a tax credit carryforward is not available at the
reporting date to settle any additional income taxes that would
result from disallowance of a tax position, or the tax law does not
require the entity to use, and the entity does not intend to use,
the deferred tax asset for such purpose, then the unrecognized
tax benet should be presented as a liability. For public entities,
the ASU is eective prospectively for scal years, and interim
periods within those years, beginning after December 15, 2013.
e Company expects to adopt this guidance starting with the
rst quarter of scal year 2015. e adoption of ASU 2013-11
is not expected to have a material impact on the Company’s
consolidated nancial statements.