KeyBank 2014 Annual Report Download - page 139

apply pushdown accounting in the reporting period in which the change-in-control event occurs and should
determine whether to elect to apply pushdown accounting for each individual change-in-control event. This
accounting guidance was effective as of November 18, 2014, after which an acquired entity can make an election
to apply the guidance to future change-in-control events or to its most recent change-in-control event. However,
if the financial statements for the period in which the most recent change-in-control event occurred have already
been issued or made available to be issued, the application of this guidance would be a change in accounting
principle. We did not change the accounting for previously recorded acquisitions based on this new guidance.
Presentation of unrecognized tax benefits. In July 2013, the FASB issued new accounting guidance that
requires unrecognized tax benefits to 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 if certain criteria are
met. This accounting guidance was applied prospectively to unrecognized tax benefits that existed at the effective
date. It was effective for fiscal years, and interim periods within those years, beginning after December 15, 2013
(effective January 1, 2014, for us). The adoption of this accounting guidance did not have a material effect on our
financial condition or results of operations. We provide additional information regarding the presentation of our
unrecognized tax benefits in Note 12 (“Income Taxes”).
Investment companies. In June 2013, the FASB issued new accounting guidance that modifies the criteria used
in defining an investment company. It also sets forth certain measurement and disclosure requirements for an
investment company. This accounting guidance was effective for interim and annual reporting periods in fiscal
years that begin after December 15, 2013 (effective January 1, 2014, for us). The adoption of this accounting
guidance did not have a material effect on our financial condition or results of operations. We provide the
disclosures required by this new accounting guidance in Note 6 (“Fair Value Measurements”).
Liquidation basis of accounting. In April 2013, the FASB issued new accounting guidance that specifies when
and how an entity should prepare its financial statements using the liquidation basis of accounting when
liquidation is imminent as defined in the guidance and describes the related disclosures that should be made. This
new accounting guidance was effective for entities that determine liquidation is imminent during annual
reporting periods beginning after December 15, 2013, and interim reporting periods therein (effective January 1,
2014, for us). Entities should apply the requirements prospectively from the day that liquidation becomes
imminent.
Reporting of cumulative translation adjustments upon the derecognition of certain investments. In March
2013, the FASB issued new accounting guidance that addresses the accounting for the cumulative translation
adjustment when a parent either sells a 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. This accounting guidance was effective prospectively for reporting periods beginning after
December 15, 2013 (effective January 1, 2014, for us). The adoption of this accounting guidance did not have a
material effect on our financial condition or results of operations.
Accounting Guidance Pending Adoption at December 31, 2014
Derivatives and hedging. In November 2014, the FASB issued new accounting guidance that clarifies how
current guidance should be interpreted when evaluating the economic characteristics and risks of a host contract
in a hybrid financial instrument that is issued in the form of a share. An entity should consider all relevant terms
and features, including the embedded derivative feature being evaluated for bifurcation, when evaluating the
nature of a host contract. This accounting guidance will be effective for interim and annual reporting periods
beginning after December 15, 2015 (effective January 1, 2016, for us) and should be implemented using a
modified retrospective basis. Retrospective application to all relevant prior periods and early adoption is
permitted. The adoption of this accounting guidance is not expected to have a material effect on our financial
condition or results of operations.
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