KeyBank 2014 Annual Report Download - page 140

Going concern. In August 2014, the FASB issued new accounting guidance that requires management to
perform interim and annual assessments of an entity’s ability to continue as a going concern within one year of
the date the financial statements are issued. Disclosure is required when conditions or events raise substantial
doubt about an entity’s ability to continue as a going concern. This accounting guidance will be effective for
interim and annual reporting periods beginning after December 15, 2016 (effective January 1, 2017, for us).
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.
Troubled debt restructurings. In August 2014, the FASB issued new accounting guidance that clarifies how to
account for certain government-guaranteed mortgage loans upon foreclosure. This accounting guidance will be
effective for reporting periods beginning after December 15, 2014 (effective January 1, 2015, for us) and can be
implemented using either a modified retrospective method or a prospective method. Early adoption is permitted.
We have elected to implement the new accounting guidance using a prospective approach. The adoption of this
accounting guidance is not expected to have a material effect on our financial condition or results of operations.
Consolidation. In August 2014, the FASB issued new accounting guidance that clarifies how to measure the
financial assets and the financial liabilities of a consolidated collateralized financing entity. This accounting
guidance will be effective for interim and annual reporting periods beginning after December 15, 2015 (effective
January 1, 2016, for us) and can be implemented using either a retrospective method or a cumulative-effect
approach. 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.
Stock-based compensation. In June 2014, the FASB issued new accounting guidance that clarifies how to
account for share-based payments when the terms of an award provide that a performance target could be
achieved after the requisite service period. This accounting guidance will be effective for interim and annual
reporting periods beginning after December 15, 2015 (effective January 1, 2016, for us) and can be implemented
using either a retrospective method or a prospective method. 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.
Transfers and servicing of financial assets. In June 2014, the FASB issued new accounting guidance that
applies secured borrowing accounting to repurchase-to-maturity transactions and linked repurchase financings
and expands disclosure requirements. This accounting guidance will be effective for interim and annual reporting
periods beginning after December 15, 2014 (effective January 1, 2015, for us) and needs to be implemented
using a cumulative-effect approach to transactions outstanding as of the effective date with no adjustment to prior
periods. The disclosure related to certain sales transactions will be presented for interim and annual periods
beginning after December 15, 2014 (March 31, 2015, for us). The disclosure for secured borrowings will be
presented for annual periods beginning after December 15, 2014, and for interim periods beginning after
March 15, 2015 (June 30, 2015, for us). Early adoption is not permitted. The adoption of this accounting
guidance is not expected to have a material effect on our financial condition or results of operations.
Revenue recognition. In May 2014, the FASB issued new accounting guidance that revises the criteria for
determining when to recognize revenue from contracts with customers and expands disclosure requirements. This
accounting guidance will be effective for interim and annual reporting periods beginning after December 15,
2016 (effective January 1, 2017, for us) and can be implemented using either a retrospective method or a
cumulative-effect approach. Early adoption is not permitted. We have elected to implement the new accounting
guidance using a cumulative-effect approach. Our preliminary analysis suggests that the adoption of this
accounting guidance is not expected to have a material effect on our financial condition or results of operations.
There are many aspects of the new accounting guidance that are still being interpreted, and therefore, the results
of our materiality analysis may change based on the conclusions reached as to the application of the new
guidance.
Discontinued operations. In April 2014, the FASB issued new accounting guidance that revises the criteria for
determining when disposals should be reported as discontinued operations and modifies the disclosure
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