DELPHI 2011 Annual Report Download - page 102

Table of Contents
Recently issued accounting pronouncements—In June 2009, the Financial Accounting Standards Board ("FASB") issued guidance related to
accounting for transfers of financial assets which changes the way entities account for securitizations and special-purpose entities, codified in FASB ASC 810,
Consolidation, and FASB ASC 860, Transfers and Servicing. The adoption of this guidance on January 1, 2010 did not have a significant impact on Delphi's
financial statements.
In October 2009, the FASB issued Accounting Standards Update ("ASU") 2009-13, Revenue Recognition—Multiple-Deliverable Revenue
Arrangements—a consensus of the FASB Emerging Issues Task Force, which amends FASB ASC 605, Revenue Recognition, by modifying the criteria used
to separate elements in a multiple-element arrangement, introducing the concept of "best estimate of selling price" for determining the selling price of a
deliverable, establishing a hierarchy of evidence for determining the selling price of a deliverable, requiring use of the relative selling price method and
prohibiting use of the residual method to allocate arrangement consideration among units of accounting, and expanding the disclosure requirements for all
multiple-element arrangements within the scope of FASB ASC 605-25. The amended guidance is effective prospectively for revenue arrangements entered
into or materially modified in fiscal years beginning on or after June 15, 2010. The adoption of this guidance on January 1, 2011 did not have a significant
impact on Delphi's financial statements.
In April 2010, the FASB ratified Emerging Issues Task Force Issue No. 08-9, Milestone Method of Revenue Recognition ("Issue 08-9"). ASU 2010-17,
Revenue Recognition—Milestone Method, which resulted from the ratification of Issue 08-9 and amends FASB ASC 605. ASU 2010-17 allows, but does not
require, an entity to make an accounting policy election to recognize a payment that is contingent upon the achievement of a substantive milestone in its
entirety in the period in which the milestone is achieved. The guidance in ASU 2010-17 is effective for fiscal years, and interim periods within those years,
beginning on or after June 15, 2010. The adoption of this guidance on January 1, 2011 did not have a significant impact on Delphi's financial statements.
In August 2010, the FASB issued ASU 2010-20, Receivables—Disclosures about the Credit Quality of Financing Receivables and the Allowance for
Credit Losses. This guidance amends required disclosures about an entity's allowance for credit losses and the credit quality of its financing receivables. The
update will require entities to provide a greater level of disaggregated information about the credit quality of its financing receivables and its allowance for
credit losses. The guidance is effective for public companies for interim and annual reporting periods ending on or after December 15, 2010 and for non-
public companies, for annual reporting periods ending on or after December 15, 2011. In January 2011, the FASB issued ASU 2011-01 Receivables—
Deferral of the Effective Date of Disclosures about troubled debt restructurings in ASU 2010-20. This guidance temporarily delays the effective date of the
disclosures about troubled debt restructurings for public entities. This deferral was reversed by the issuance of ASU 2011-02 (see description in the following
paragraph) and the effective date is interim and annual periods beginning after June 15, 2011. The adoption of this guidance on January 1, 2011 did not have a
significant impact on Delphi's financial statements.
In April 2011, the FASB issued ASU 2011-02, A Creditor's Determination of Whether a Restructuring is a Troubled Debt Restructuring. This guidance
clarifies the definition of what constitutes a concession given by a creditor and clarifies guidance on whether a debtor is experiencing financial difficulties
both for purposes of recording an impairment loss and for disclosure of troubled debt restructuring. The guidance in ASU 2011-02 is effective with interim
and annual periods beginning after June 15, 2011. The adoption of this guidance did not have a significant impact on Delphi's financial statements.
In May 2011, the FASB issued ASU 2011-04, Amendments to Achieve Common Fair Value Measurement and Disclosure Requirements in US GAAP
and IFRSs, which updates the definition of fair value and measurement criteria to bring them into agreement with IFRSs (which are also changed to agree
with US GAAP). The guidance is effective for interim and annual periods beginning after December 15, 2011. Early adoption is not permitted. Delphi is
evaluating the effects of this guidance but does not expect it to have a significant impact on Delphi's financial statements other than providing the required
disclosures.
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