Equifax 2015 Annual Report Download - page 53

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be classified as noncurrent in a classified statement of financial position. For public business entities, the amendments in this
update are effective for financial statements issued for annual periods beginning after December 15, 2016, and interim periods
within those annual periods. Earlier application is permitted for all entities as of the beginning of an interim or annual reporting
period. The amendments in this update may be applied either prospectively to all deferred tax liabilities and assets or
retrospectively to all periods presented.
As permitted under this update, the Company has adopted the new guidance and retrospectively presented the deferred
tax liabilities and assets as noncurrent on our Consolidated Balance Sheet for the years ended December 31, 2015 and 2014.
We have also updated Item 6 "Selected Financial Data" for this change. The Company believes that this presentation leads to
further simplification of financial reporting. This change did not affect our consolidated statements of income, cash flows, or
shareholders' equity.
Recent Accounting Pronouncements. ReportingofProvisionalAmountsinaBusinessCombination.In September
2015, the FASB issued ASU 2015-03 “Business Combinations (Topic 805): Simplifying the Accounting for Measurement-
Period Adjustments”. This standard eliminates the requirement to restate prior period financial statements for measurement
period adjustments following a business combination. The new standard requires 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 prior period impact of the adjustment should be either presented separately on the face of the income statement
or disclosed in the notes. The guidance becomes effective for fiscal years and interim reporting periods beginning after
December 15, 2015, with early adoption permitted for financial statements that have not been issued. We do not expect the
adoption of this standard to have a material impact on our consolidated financial position, results of operations and cash flows.
CloudComputingArrangements.In April 2015, the FASB issued ASU 2015-05 “Intangibles—Goodwill and Other—
Internal-Use Software: Customer's Accounting for Fees Paid in a cloud Computing Arrangement.” The update provides criteria
for customers in a cloud computing arrangement to use to determine whether the arrangement includes a license of software.
The guidance becomes effective for fiscal years and interim reporting periods beginning after December 15, 2015, with early
adoption permitted. We do not expect the adoption of this standard to have a material impact on our consolidated financial
position, results of operations and cash flows.
PresentationofDebtIssuanceCosts.In April 2015, the FASB issued ASU 2015-03 “Interest - Imputation of Interest.”
The guidance modified the presentation of debt issuance costs, to 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 guidance becomes effective for fiscal years and interim reporting periods beginning after December 15,
2015, with early adoption permitted. In August 2015, the FASB issued ASU 2015-15 "Interest - Imputation of Interest", which
updated the ASU 2015-03 guidance to state that the SEC staff would not object to an entity deferring and presenting debt
issuance costs as an asset and subsequently amortizing the deferred debt issuance costs ratably over the term of the line-of-
credit arrangement, regardless of whether there are any outstanding borrowings on the line-of-credit arrangement. We do not
expect the adoption of this standard to have a material impact on our consolidated financial position, results of operations and
cash flows.
RevenueRecognition. In May 2014, the FASB issued ASU No. 2014-9, "Revenue from Contracts with Customers."
ASU 2014-9 is a comprehensive new revenue recognition model that requires a company to recognize revenue to depict the
transfer of goods or services to a customer at an amount that reflects the consideration it expects to receive in exchange for
those goods or services. ASU 2014-9 also requires additional disclosure about the nature, amount, timing and uncertainty of
revenue and cash flows arising from customer contracts, including significant judgments and changes in judgments and assets
recognized from costs incurred to obtain or fulfill a contract. ASU 2014-9 was originally effective for annual reporting periods,
and interim periods within that period, beginning after December 15, 2016 and early adoption was not permitted. On July 9,
2015, the FASB voted to defer the effective date by one year to December 15, 2017 for interim and annual reporting periods
beginning after that date and permitted early adoption of the standard, but not before the original effective date of December
15, 2016. Companies may use either a full retrospective or a modified retrospective approach to adopt ASU 2014-9. The
Company is evaluating the potential effects of the adoption of this standard on its Consolidated Financial Statements.
2. COST METHOD INVESTMENT
We hold a 15% equity interest in BVS, which is the second largest consumer and commercial credit information
company in Brazil. This investment is recorded in other assets, net, on the Consolidated Balance Sheets and is accounted for
using the cost method. As of December 31, 2012, our investment in BVS was valued at 130 million Brazilian Reais, which was
the same as the initial fair value. The initial fair value was determined by a third-party using income, market and transaction
approaches.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
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