Priceline 2014 Annual Report Download - page 52

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guidance specifies the accounting for some costs to obtain or fulfill a contract with a customer. The new standard will also require enhanced
disclosures. The accounting standard is effective for public entities for annual and interim periods beginning after December 15, 2016. Early
adoption is not permitted under U.S. GAAP and retrospective application is permitted but not required. We are currently evaluating the impact
on its consolidated financial statements of adopting this new guidance.
In April 2014, the FASB issued an accounting update which amends the definition of a discontinued operation. The new definition
limits discontinued operations reporting to disposals of components of an entity that represent strategic shifts that have or will have a major
effect on an entity's operations and financial results. The new definition includes an acquired business that is classified as held for sale at the date
of acquisition. The accounting update requires new disclosures of both discontinued operations and a disposal of an individually significant
component of an entity. The accounting update is effective for annual and interim periods beginning on or after December 15, 2014. Early
adoption is permitted but only for disposals that have not been reported in financial statements previously issued. We adopted this update in the
first quarter of 2015 and this accounting update did not have an impact on our consolidated financial statements.
In July 2013, the FASB issued an accounting update which provides guidance on financial statement presentation of an unrecognized
tax benefit when a net operating loss carryforward or a tax credit carryforward exists in the same taxing jurisdiction. Per this guidance, an entity
must present the unrecognized tax benefit as a reduction to a deferred tax asset, except when the carryforward is not available as of the reporting
date under the governing tax law to settle taxes or the entity does not intend to use the deferred tax asset for this purpose. This amendment does
not impact the recognition or measurement of uncertain tax positions or the disclosure reconciliation of gross unrecognized tax benefits. The
update is effective for public companies beginning after December 15, 2013. We adopted this update in the first quarter of 2014 and this
accounting update did not have an impact on the Company's consolidated balance sheet.
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