Priceline 2015 Annual Report Download - page 52

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entities. We adopted this accounting update in the fourth quarter of 2015 and this accounting update did not have an impact to our consolidated financial
statements.
In May 2014, the FASB and the International Accounting Standards Board ("IASB") issued a new accounting standard on the recognition of revenue from
contracts with customers that is designed to create greater comparability for financial statement users across industries and jurisdictions. The core principle of the
standard is that an "entity recognizes revenue to depict the transfer of promised goods or services to customers in an amount that reflects the consideration to which
the entity expects to be entitled in exchange for those goods or services." Additionally, the new guidance specified 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 was initially effective for public entities for annual
and interim periods beginning after December 15, 2016. In July 2015, the FASB agreed to defer the effective date of the new revenue standard to annual periods
beginning after December 15, 2017 with early adoption permitted as of the original effective date. We are currently evaluating the impact to our consolidated
financial statements of adopting this new guidance.
In April 2014, the FASB issued an accounting update which amended 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. We adopted this update in the first quarter of 2015 and this accounting update did not have an impact to
our consolidated financial statements.
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