INTL FCStone 2014 Annual Report Download - page 86

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INTL FCSTONE INC. Form 10K70
PART II
ITEM 8 Financial Statements and Supplementary Data
that they are offset in the financial statements or subject to an
enforceable master netting arrangement or similar agreement.
While the FASB retained the existing offsetting models under
U.S. GAAP, the new standard requires disclosures to allow
investors to better compare and understand significant quantitative
differences in financial statements prepared under U.S. GAAP.
e new standard is effective for annual periods beginning on or
after January 1, 2013, and interim periods within those annual
periods. Retrospective application is required. is guidance is
effective for the Company’s fiscal year beginning October 1,
2013. e Company adopted this guidance starting with the
first quarter ended December 31, 2013. e adoption of this
guidance did not have a material impact on the Company’s
disclosures within the notes to its condensed consolidated
financial statements. Refer to Note 4 and Note 10 of the notes
to the consolidated financial statements for disclosure of assets
and liabilities regarding the Company’s derivative instruments
and repurchase agreements.
In February 2013, the FASB issued Accounting Standards
Update (“ASU”) 2013-02, Reporting of Amounts Reclassified
Out of Accumulated Other Comprehensive Income requiring
new disclosures regarding reclassification adjustments from
accumulated other comprehensive income (“AOCI”).
ASU No. 2013-02 requires disclosure of amounts reclassified
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, significant amounts reclassified out of
AOCI by the respective line items of net income. e Company
adopted this guidance starting with the first quarter ended
December 31, 2013. e adoption of this guidance did not
have a material impact on the presentation of the Company’s
consolidated financial statements.
In March 2013, the FASB issued ASU 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 financial interest in a subsidiary or group of assets
that is a nonprofit activity or a business within a foreign entity.
For public entities, the ASU is effective prospectively for fiscal
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
first quarter of fiscal year 2015. e adoption of this guidance
is not expected to have a material impact on the Company’s
consolidated financial statements.
In July 2013, the FASB issued ASU 2013-11, Presentation
of an Unrecognized Tax Benefit When a Net Operating Loss
Carryforward, a Similar Tax Loss, or a Tax Credit Carryforward
Exists. is ASU provides that an unrecognized tax benefit, or a
portion thereof, should be presented in the financial 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 benefit should be presented as a liability. For public entities,
the ASU is effective prospectively for fiscal years, and interim
periods within those years, beginning after December 15, 2013.
e Company expects to adopt this guidance starting with the
first quarter of fiscal year 2015. e adoption of ASU 2013-11
is not expected to have a material impact on the Company’s
consolidated financial statements.
In April 2014, the FASB issued ASU 2014-08, Presentation
of Financial Statements: Reporting Discontinued Operations,
which updated guidance on reporting discontinued operations
and disclosures of disposals of components of an entity. Under
the amendment only those disposals of components of an entity
that represent a strategic shift that has (or will have) a major
effect on an entity’s operations and financial results will be
reported as discontinued operations in the financial statements.
Next, the elimination of the component’s operations, cash flows
and significant continuing involvement conditions have been
removed. Lastly, an equity method investment could be reported
as discontinued operations. e updated guidance is effective
prospectively for all disposals or classifications as held for sale that
occur within annual periods beginning after December 15, 2014.
e Company expects to adopt this guidance starting with the
first quarter of fiscal year 2016. e Company does not expect
the adoption of this guidance to have a material impact on the
consolidated financial statements.
On May 28, 2014, the FASB issued ASU 2014-09, Revenue
from Contracts with Customers, which requires an entity to
recognize the amount of revenue to which it expects to be entitled
for the transfer of promised goods or services to customers. e
ASU will replace most existing revenue recognition guidance in
U.S. GAAP when it becomes effective. For public entities, the
ASU is effective for fiscal years, and interim periods within those
years, beginning after December 15, 2016. Early application is
not permitted. e Company expects to adopt this guidance
starting with the first quarter of fiscal year 2018. e standard
permits the use of either the retrospective or cumulative effect
transition method. e Company is evaluating the effect that
ASU 2014-09 will have on its consolidated financial statements
and related disclosures. e Company has not yet selected a
transition method nor has it determined the effect of the standard
on its ongoing financial reporting.
In June 2014, the FASB issued ASU 2014-11, Transfers and
Servicing: Repurchase-to-Maturity Transactions, Repurchase
Financings, and Disclosures, which changes the accounting
for repurchase-to-maturity transactions to secured borrowing