Autodesk 2016 Annual Report Download - page 152

2016 Form 10-K 80
accounting guidance. Adoption of ASU 2015-17 did not have a material impact on Autodesk's consolidated financial
statements.
Effective in the third quarter of fiscal 2016, Autodesk elected to early adopt FABS's Accounting Standards Update No.
2015-16 ("ASU 2015-16") regarding ASC Topic 805 "Business Combinations: Simplifying the Accounting for Measurement-
Period Adjustments." The amendments in ASU 2015-16 eliminate the requirement to restate prior period financial statements
for measurement period adjustments. The amendments also require that the cumulative impact of a measurement period
adjustment (including the impact on prior periods) be recognized in the reporting period in which the adjustment is identified.
The amendments for ASU-2015-16 were prospectively applied and did not have a material impact on Autodesk's consolidated
financial statements.
Effective in the second quarter of fiscal 2016, Autodesk elected to early adopt FASB's Accounting Standards Update
2015-03 (“ASU 2015-03”) regarding Subtopic 835-30 “Interest - Imputation of Interest: Simplifying the Presentation of Debt
Issuance Costs.” The amendments in ASU 2015-03 require that debt issuance costs related to a recognized debt liability be
presented in the balance sheet as a direct deduction from the carrying amount of that debt liability, consistent with debt
discounts. The standard requires retrospective application and represents a change in accounting principle. The adoption of
ASU 2015-03 resulted in a $4.1 million retrospective reduction of both our other assets and long term notes payable, net, as of
January 31, 2015.
Recently Issued Accounting Standards
In February 2016, the FASB issued Accounting Standards Update No. 2016-02 ("ASU 2016-02") regarding ASC Topic
842 "Leases." The amendments in this ASU require balance sheet recognition of lease assets and lease liabilities by lessees for
leases classified as operating leases, with an optional policy election to not recognize lease assets and lease liabilities for leases
with a term of 12 months or less. The amendments also require new disclosures, including qualitative and quantitative
requirements, providing additional information about the amounts recorded in the financial statements. ASU 2016-02 will be
effective for Autodesk’s fiscal year beginning February 1, 2019 unless Autodesk elects early adoption. The amendments require
a modified retrospective approach with optional practical expedients. Autodesk is currently evaluating the accounting,
transition, and disclosure requirements of the standard and cannot currently estimate the financial statement impact of adoption.
In January 2016, the FASB issued Accounting Standards Update No. 2016-01 ("ASU 2016-01") regarding ASC Topic
825-10 "Financial Instruments - Overall." The amendments address certain aspects of recognition, measurement, presentation,
and disclosure of financial instruments, and require equity securities to be measured at fair value with changes in fair value
recognized through net income. The amendments also simplify the impairment assessment of equity investments without
readily determinable fair values by requiring a qualitative assessment for impairment quarterly at each reporting period. The
amendments in ASU 2016-01 are effective for annual and interim periods beginning after December 15, 2017. An entity should
apply the amendments by means of a cumulative-effect adjustment to the balance sheet as of the beginning of the fiscal year of
adoption, with prospective adoption of the amendments related to equity securities without readily determinable fair values
existing as of the date of adoption. Autodesk is currently evaluating the accounting, transition, and disclosure requirements of
the standard and cannot currently estimate the financial statement impact of adoption.
In May 2015, the FASB issued Accounting Standards Update No. 2015-07 ("ASU 2015-07") regarding ASC Topic 820
"Fair Value Measurement: Disclosures for Investments in Certain Entities That Calculate Net Asset Value per Share (or Its
Equivalent)." The amendments in ASU 2015-07 remove the requirement to categorize within the fair value hierarchy all
investments for which fair value is measured using the net asset value per share practical expedient. The amendments also limit
certain disclosures to investments for which the entity has elected to measure at fair value using the net asset value per share
practical expedient. The amendments in ASU 2015-07 are effective for annual and interim periods beginning after December
15, 2015. Early adoption is permitted. The amendments should be applied retrospectively by removing from the fair value
hierarchy any investments for which fair value is measured using the net asset value per share practical expedient. Autodesk
does not expect ASU 2015-07 to have a material impact on its consolidated financial statements.
In April 2015, the FASB issued Accounting Standards Update No. 2015-05 ("ASU 2015-05") regarding Subtopic 350-40,
“Intangibles - Goodwill and Other - Internal-Use Software: Customer's Accounting for Fees Paid in a Cloud Computing
Arrangement.” The amendments in this ASU provide guidance about whether a cloud computing arrangement includes a
software license. If a cloud computing arrangement includes a software license, the customer should account for the software
license element of the arrangement consistent with other software licenses. If a cloud computing arrangement does not include a
software license, the customer should account for the arrangement as a service contract. The amendments in ASU 2015-05 are
effective for annual and interim periods beginning after December 15, 2015. Early adoption is permitted. The amendments in
2016 Annual Report