Wells Fargo 2012 Annual Report Download - page 104

Current Accounting Developments
The following accounting pronouncements have been issued by
the FASB but are not yet effective:
x Accounting Standards Update (ASU or Update) 2011-11,
Disclosures about Offsetting Assets and Liabilities;
x ASU 2013-01, Clarifying the Scope of Disclosures about
Offsetting Assets and Liabilities; and
x ASU 2013-02, Reporting of Amounts Reclassified Out of
Accumulated Other Comprehensive Income.
ASU 2011-11 expands the disclosure requirements for certain
financial instruments and derivatives that are subject to
enforceable master netting agreements or similar arrangements.
The disclosures are required regardless of whether the
instruments have been offset (or netted) in the statement of
financial position. Under ASU 2011-11, companies must describe
the nature of offsetting arrangements and provide quantitative
information about those agreements, including the gross and net
amounts of financial instruments that are recognized in the
statement of financial position. In January 2013, the FASB
issued ASU 2013-01, which clarifies the scope of ASU 2011-11
by limiting the disclosures to derivatives, repurchase
agreements, and securities lending transactions to the extent
they are subject to an enforceable master netting or similar
arrangement. These changes are effective for us in first quarter
2013 with retrospective application. The Updates will not affect
our consolidated financial results since they amend only the
disclosure requirements for offsetting financial instruments.
ASU 2013-02 requires companies to disclose the effect on net
income line items from significant amounts reclassified out of
accumulated other comprehensive income and entirely into net
income. However, for those reclassifications that are partially or
entirely capitalized on the balance sheet, then companies must
provide a cross-reference to disclosures that provide information
about the effect of the reclassifications. This guidance is effective
for us in Q1 2013 with prospective application. The Update will
not affect our consolidated financial results as it amends only the
disclosure requirements for accumulated other comprehensive
income.
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