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PAYCHEX, INC.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS — (Continued)
In February 2015, the FASB issued ASU No. 2015-02 “Consolidation (Topic 810): Amendments to the
Consolidation Analysis.” This guidance focuses on a reporting company’s consolidation evaluation to determine
whether they should consolidate certain legal entities. This guidance is effective for annual periods beginning
after December 15, 2015, and is applicable to the Company’s fiscal year beginning June 1, 2016. Early adoption
is permitted, including adoption in an interim period. The Company is currently evaluating this guidance, but
does not anticipate it will have a material impact to its consolidated financial statements.
In January 2015, the FASB issued ASU No. 2015-01 “Income Statement — Extraordinary and Unusual
Items (Subtopic 225-20)-Simplifying Income Statement Presentation by Eliminating the Concept of
Extraordinary Items.” This guidance eliminates from GAAP the concept of extraordinary items and is effective
for annual reporting periods, including interim reporting periods, beginning after December 15, 2015, and is
applicable to the Company’s fiscal year beginning June 1, 2016. Early adoption is permitted. The Company does
not anticipate it will have a material impact to its consolidated financial statements.
In June 2014, the FASB issued ASU No. 2014-12, “Compensation — Stock Compensation (Topic 718):
Accounting for Share-Based Payments When the Terms of an Award Provide That a Performance Target Could
Be Achieved after the Requisite Service Period (a consensus of the FASB Emerging Issues Task Force).” This
guidance requires a performance target that affects vesting and that could be achieved after the requisite service
period to be treated as a performance condition. The current accounting standard for stock-based compensation
as it applies to awards with performance conditions should be applied. This guidance is effective for fiscal years,
including interim reporting periods, beginning after December 15, 2015, and is applicable to the Company’s
fiscal year beginning June 1, 2016. The Company is currently evaluating this guidance, but does not anticipate it
will have a material impact to its consolidated financial statements.
In May 2014, the FASB issued ASU No. 2014-09, “Revenue from Contracts with Customers (Topic 606).”
This guidance supersedes current guidance on revenue recognition in Topic 605, “Revenue Recognition.” In
addition, there are disclosure requirements related to the nature, amount, timing, and uncertainty of revenue
recognition. This guidance will be effective for annual reporting periods beginning after December 15, 2017,
including interim reporting periods, as recently amended, and will be required to be applied retrospectively. Early
application of the guidance is permitted for annual reporting periods beginning after December 31, 2016. This
guidance is applicable to the Company’s fiscal year beginning June 1, 2018. The Company is currently
evaluating this guidance and any potential impact to its consolidated financial statements.
Other recent authoritative guidance issued by the FASB (including technical corrections to the FASB
Accounting Standards Codification), the American Institute of Certified Public Accountants, and the Securities
and Exchange Commission (“SEC”) did not, or are not expected to have a material effect on the Company’s
consolidated financial statements.
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