Wells Fargo 2014 Annual Report Download - page 115

Effective date and financial
Standard Description statement impact
ASU 2014-09 - Revenue from Contracts
With Customers (Topic 606) The Update modifies the guidance
companies use to recognize revenue from
contracts with customers for transfers of
goods or services and transfers of
nonfinancial assets, unless those
contracts are within the scope of other
standards. The guidance also requires
new qualitative and quantitative
disclosures, including information about
contract balances and performance
obligations.
The Update is effective for us in first
quarter 2017 with retrospective
application. Early adoption is not
permitted. We are evaluating the impact
this Update will have on our consolidated
financial statements.
ASU 2014-08 - Presentation of Financial
Statements (Topic 205) and Property,
Plant, and Equipment (Topic 360):
Reporting Discontinued Operations and
Disclosures of Disposals of Components of
an Entity
The Update changes the definition and
reporting requirements for discontinued
operations. Under the new guidance, an
entity’s disposal of a component or group
of components must be reported in
discontinued operations if the disposal is
a strategic shift that has or will have a
significant effect on the entity’s
operations and financial results.
These changes are effective for us in first
quarter 2015 with prospective application.
Early adoption is permitted for disposals
that have not been previously reported.
This Update will not have a material
impact on our consolidated financial
statements.
ASU 2014-01 - Investments - Equity
Method and Joint Ventures (Topic 323):
Accounting for Investments in Qualified
Affordable Housing Projects
The Update amends the accounting
guidance for investments in affordable
housing projects that qualify for the low-
income housing tax credit. The Update
allows companies to make an accounting
policy election to amortize the cost of its
investments in proportion to the tax
benefits received if certain criteria are met
and present the amortization as a
component of income tax expense.
Additionally, the Update requires
incremental disclosures for all entities
that invest in qualified affordable housing
projects regardless of the policy election.
The new disclosure requirements are
effective for us in first quarter 2015. We
do not intend to adopt the accounting
policy election permitted by the Update,
and therefore, it will not affect our
consolidated financial statements.
Forward-Looking Statements
This document contains “forward-looking statements” within the
meaning of the Private Securities Litigation Reform Act of 1995.
In addition, we may make forward-looking statements in our
other documents filed or furnished with the SEC, and our
management may make forward-looking statements orally to
analysts, investors, representatives of the media and others.
Forward-looking statements can be identified by words such as
“anticipates,” “intends,” “plans,” “seeks,” “believes,” “estimates,”
“expects,” “target,” “projects,” “outlook,” “forecast,” “will,”
“may,” “could,” “should,” “can” and similar references to future
periods. In particular, forward-looking statements include, but
are not limited to, statements we make about: (i) the future
operating or financial performance of the Company, including
our outlook for future growth; (ii) our noninterest expense and
efficiency ratio; (iii) future credit quality and performance,
including our expectations regarding future loan losses and
allowance releases; (iv) the appropriateness of the allowance for
credit losses; (v) our expectations regarding net interest income
and net interest margin; (vi) loan growth or the reduction or
mitigation of risk in our loan portfolios; (vii) future capital levels
and our estimated Common Equity Tier 1 ratio under Basel III
capital standards; (viii) the performance of our mortgage
business and any related exposures; (ix) the expected outcome
and impact of legal, regulatory and legislative developments, as
well as our expectations regarding compliance therewith; (x)
future common stock dividends, common share repurchases and
other uses of capital; (xi) our targeted range for return on assets
and return on equity; (xii) the outcome of contingencies, such as
legal proceedings; and (xiii) the Company’s plans, objectives and
strategies.
Forward-looking statements are not based on historical
facts but instead represent our current expectations and
assumptions regarding our business, the economy and other
future conditions. Because forward-looking statements relate to
the future, they are subject to inherent uncertainties, risks and
changes in circumstances that are difficult to predict. Our actual
results may differ materially from those contemplated by the
forward-looking statements. We caution you, therefore, against
relying on any of these forward-looking statements. They are
neither statements of historical fact nor guarantees or
assurances of future performance. While there is no assurance
that any list of risks and uncertainties or risk factors is complete,
important factors that could cause actual results to differ
materially from those in the forward-looking statements include
the following, without limitation:
• current and future economic and market conditions,
including the effects of declines in housing prices, high
unemployment rates, U.S. fiscal debt, budget and tax
matters, geopolitical matters, and the overall slowdown in
global economic growth;
• our capital and liquidity requirements (including under
regulatory capital standards, such as the Basel III capital
113