Halliburton 2015 Annual Report Download - page 92

Download and view the complete annual report

Please find page 92 of the 2015 Halliburton annual report below. You can navigate through the pages in the report by either clicking on the pages listed below, or by using the keyword search tool below to find specific information within the annual report.

Page out of 108

  • 1
  • 2
  • 3
  • 4
  • 5
  • 6
  • 7
  • 8
  • 9
  • 10
  • 11
  • 12
  • 13
  • 14
  • 15
  • 16
  • 17
  • 18
  • 19
  • 20
  • 21
  • 22
  • 23
  • 24
  • 25
  • 26
  • 27
  • 28
  • 29
  • 30
  • 31
  • 32
  • 33
  • 34
  • 35
  • 36
  • 37
  • 38
  • 39
  • 40
  • 41
  • 42
  • 43
  • 44
  • 45
  • 46
  • 47
  • 48
  • 49
  • 50
  • 51
  • 52
  • 53
  • 54
  • 55
  • 56
  • 57
  • 58
  • 59
  • 60
  • 61
  • 62
  • 63
  • 64
  • 65
  • 66
  • 67
  • 68
  • 69
  • 70
  • 71
  • 72
  • 73
  • 74
  • 75
  • 76
  • 77
  • 78
  • 79
  • 80
  • 81
  • 82
  • 83
  • 84
  • 85
  • 86
  • 87
  • 88
  • 89
  • 90
  • 91
  • 92
  • 93
  • 94
  • 95
  • 96
  • 97
  • 98
  • 99
  • 100
  • 101
  • 102
  • 103
  • 104
  • 105
  • 106
  • 107
  • 108

75
presumption that a general partner should consolidate a limited partnership and modifies the evaluation of whether limited
partnerships are variable interest entities or voting interest entities. This update is effective for fiscal years beginning after
December 15, 2015, and interim periods within those fiscal years. We do not expect the adoption of this update to have a
material impact on our consolidated financial statements.
Inventory
In July 2015, the FASB issued an accounting standards update to simplify the measurement of inventory, which
requires inventory measured using the first in, first out (FIFO) or average cost methods to be subsequently measured at the
lower of cost and net realizable value. Net realizable value is the estimated selling price in the ordinary course of business, less
reasonably predictable cost of completion, disposal, and transportation. Currently, these inventory methods are required to be
subsequently measured at the lower of cost or market. Market could be replacement cost, net realizable value, or net realizable
value less an approximately normal profit margin. This update will be effective for fiscal years beginning after December 15,
2016, including interim periods within those fiscal years, and will be applied prospectively. Early adoption is permitted. We are
currently evaluating the impact that this update will have on our consolidated financial statements.
Business Combinations
In September 2015, the FASB issued an accounting standards update to simplify the accounting for measurement-
period adjustments for an acquirer in a business combination. The update will require an acquirer to recognize any adjustments
to provisional amounts of the initial accounting for a business combination with a corresponding adjustment to goodwill in the
reporting period in which the adjustments are determined in the measurement period, as opposed to revising prior periods
presented in financial statements. Thus, an acquirer shall adjust its financial statements as needed, including recognizing in its
current-period earnings the full effect of changes in depreciation, amortization, or other income effects, by line item, if any, as a
result of the change to the provisional amounts calculated as if the accounting had been completed at the acquisition date. This
update is effective for fiscal years beginning after December 15, 2015, and interim periods within those fiscal years. This
update may have a material impact on our consolidated financial statements subsequent to the pending acquisition of Baker
Hughes for any measurement-period adjustments after the initial accounting period. See Note 2 for further information about
the pending acquisition.