National Grid 2013 Annual Report Download - page 19

18
financial statement users’ ability to understand the causes of an entity’ s change in financial position and results of
operations. As a result of this guidance entities are required to either present the statement of income and statement of
comprehensive income in a single continuous statement or in two separate, but consecutive statements of net income and
other comprehensive income. This guidance does not change the items that are reported in other comprehensive income
or any reclassification of items to net income. In addition, the new guidance does not change an entity’ s option to present
components of other comprehensive income net of or before related tax effects. This guidance became effective for non-
public companies for fiscal years ending after December 15, 2012, and for interim and annual periods thereafter, and it is
to be applied retrospectively. The Company adopted this guidance for the fiscal year ended March 31, 2013, with no
impact on its consolidated financial position, results of operations, or cash flows.
Accounting Guidance Not Yet Adopted
Offsetting Assets and Liabilities
In December 2011, the FASB issued accounting guidance requiring enhanced disclosure related to offsetting assets and
liabilities. Under the new guidance, reporting entities will be required to disclose both gross and net information about
instruments and transactions eligible for offset in the statement of financial position and instruments and transactions
subject to an agreement similar to a master netting agreement, such as for derivatives. In January 2013, the FASB issued
additional guidance to clarify that the specific instruments and activities that should be considered in these disclosures
will be limited to recognized derivatives, repurchase and reverse repurchase agreements, and securities lending
transactions. This guidance is effective for fiscal years, and interim periods within those years, beginning after January 1,
2013, and is to be applied retrospectively. The Company will begin including the new required disclosures in its fiscal
year 2014 interim financial statements as applicable and does not expect any impact on its consolidated financial
position, results of operations, or cash flows.
Reclassifications From Accumulated Other Comprehensive Income
In February 2013, the FASB issued accounting guidance that requires an entity to report information about significant
reclassifications out of accumulated other comprehensive income. The new guidance requires presentation either in a
single footnote or parenthetically on the financial statements, of the effect of significant amounts reclassified out of
accumulated other comprehensive income based on the corresponding line items in the statement of net income. For
amounts that are not required to be reclassified in their entirety to net income in the same reporting period, an entity
would cross-reference other disclosures that provide additional detail about those amounts. The amendments do not
change the current requirements for reporting net income or other comprehensive income in the financial statements. For
non-public entities, the amendments are effective prospectively for reporting periods beginning after December 15, 2013.
Early adoption is permitted. The Company is evaluating the impact, if any, on its consolidated financial position, results
of operations, and cash flows.