Royal Caribbean Cruise Lines 2014 Annual Report Download - page 79

78 Royal Caribbean Cruises Ltd.
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
In April 2014, amended guidance was issued changing
the requirements for reporting discontinued operations
and enhancing the disclosures in this area. The new
guidance requires a disposal of a component of an
entity or a group of components of an entity to be
reported in discontinued operations if the disposal
represents a strategic shift that has (or will have) a
major effect on an entity’s operations and financial
results. The guidance will be effective prospectively
for our interim and annual reporting periods beginning
after December 15, 2014. The guidance will impact the
reporting and disclosures of future disposals, if any.
In May 2014, amended guidance was issued to clarify
the principles used to recognize revenue for all entities.
The guidance is based on the principle that revenue
should be recognized to depict the transfer of prom-
ised 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.
The standard also requires more detailed disclosures
and provides additional guidance for transactions
that were not comprehensively addressed in the prior
accounting guidance. This guidance must be applied
using one of two retrospective application methods
and will be effective for our interim and annual report-
ing periods beginning after December 15, 2016. Early
adoption is not permitted. We are currently evaluating
the impact of the adoption of this newly issued guid-
ance to our consolidated financial statements.
In August 2014, guidance was issued requiring manage-
ment to evaluate, at each annual and interim reporting
period, whether there are conditions or events that
raise substantial doubt about the entity’s ability to
continue as a going concern within one year after the
date the financial statements are issued and provide
related disclosures. This guidance will be effective for
our annual reporting period ending after December
15, 2016, and for annual periods and interim periods
thereafter. Early adoption is permitted. The adoption
of this newly issued guidance is not expected to have
an impact to our consolidated financial statements.
In January 2015, amended guidance was issued
changing the requirements for reporting extraordi-
nary and unusual items in the income statement. The
update eliminates the concept of extraordinary items.
The presentation and disclosure guidance for items
that are unusual in nature or occur infrequently will be
retained and will be expanded to include items that
are both unusual in nature and infrequently occurring.
A reporting entity may apply the amendments pro-
spectively or retrospectively to all periods presented
in the financial statements. The guidance will be effec-
tive for fiscal years, and interim periods within those
fiscal years, beginning after December 15, 2015. Early
adoption is permitted provided that the guidance is
applied from the beginning of the fiscal year of adop-
tion. The adoption of this newly issued guidance is
not expected to have an impact to our consolidated
financial statements.
In February 2015, amended guidance was issued
affecting current consolidation guidance. The guid-
ance changes the analysis that a reporting entity must
perform to determine whether it should consolidate
certain types of legal entities. This guidance must be
applied using one of two retrospective application
methods and will be effective for fiscal years, and for
interim periods within those fiscal years, beginning
after December 15, 2015. Early adoption is permitted,
including adoption in any interim period. We are cur-
rently evaluating the impact, if any, of the adoption
of this newly issued guidance to our consolidated
financial statements.
Reclassifications
As of December 31, 2013, $24.3 million has been
reclassified in the consolidated balance sheet from
Accrued expenses and other liabilities to Derivative
financial instruments within Total current liabilities in
order to conform to the current year presentation.
For the years ended December 31, 2013 and December
31, 2012, a net deferred income tax benefit (expense)
of $1.8 million and $(0.5) million, respectively, have
been reclassified in the consolidated statements of
cash flows from Other, net to Net deferred income
tax (benefit) expense within Net cash provided by
operating activities in order to conform to the current
year presentation.
NOTE 3. GOODWILL
The carrying amount of goodwill attributable to our
Royal Caribbean International and Pullmantur report-
ing units was as follows (in thousands):
Royal
Caribbean
International Pullmantur Total
Balance at
December 31, 2012   
Foreign currency
translation
adjustment ()  
Balance at
December 31, 2013   
Foreign currency
translation
adjustment () () ()
Balance at
December 31, 2014   