JP Morgan Chase 2015 Annual Report Download - page 180

Management’s discussion and analysis
170 JPMorgan Chase & Co./2015 Annual Report
ACCOUNTING AND REPORTING DEVELOPMENTS
Financial Accounting Standards Board (“FASB”) Standards Adopted during 2015
Standard Summary of guidance Effects on financial statements
Simplifying the
presentation of debt
issuance costs
• Requires that unamortized debt issuance costs be presented as a
reduction of the applicable liability rather than as an asset.
• Does not impact the amortization method for these costs.
• Adopted October 1, 2015.
• There was no material impact on the Firm’s
Consolidated balance sheets, and no impact on the
Firm’s Consolidated results of operations.
• For further information, see Note 1.(a)
Disclosures for
investments in certain
entities that calculate net
asset value per share (or
its equivalent)
• Removes the requirement to categorize investments measured
under the net asset value (“NAV”) practical expedient from the
fair value hierarchy.
• Limits disclosures required for investments that are eligible to be
measured using the NAV practical expedient to investments for
which the entity has elected the practical expedient.
• Adopted April 1, 2015.
• The application of this guidance only affected the
disclosures related to these investments and had
no impact on the Firm’s Consolidated balance
sheets or results of operations.
• For further information, see Note 3.(a)
Repurchase agreements
and similar transactions
• Amends the accounting for certain secured financing
transactions.
• Requires enhanced disclosures with respect to transactions
recognized as sales in which exposure to the derecognized assets
is retained through a separate agreement with the counterparty.
• Requires enhanced disclosures with respect to the types of financial
assets pledged in secured financing transactions and the remaining
contractual maturity of the secured financing transactions.
• Accounting amendments adopted January 1, 2015.
• Disclosure enhancements adopted April 1, 2015.
• There was no material impact on the Firm’s
Consolidated Financial Statements.
• For further information, see Note 6 and Note 13.
Reporting discontinued
operations and
disclosures of disposals of
components of an entity
• Changes the criteria for determining whether a disposition
qualifies for discontinued operations presentation.
• Requires enhanced disclosures about discontinued operations and
significant dispositions that do not qualify to be presented as
discontinued operations.
• Adopted January 1, 2015.
• There was no material impact on the Firm’s
Consolidated Financial Statements.
Investments in qualified
affordable housing
projects
• Applies to accounting for investments in affordable housing
projects that qualify for the low-income housing tax credit.
• Replaces the effective yield method and allows companies to make
an accounting policy election to amortize the initial cost of its
investments in proportion to the tax credits and other benefits
received if certain criteria are met, and to present the amortization
as a component of income tax expense.
• Adopted January 1, 2015.
• For further information, see Note 1.(a)
(a) The guidance was required to be applied retrospectively and accordingly, certain prior period amounts have been revised to conform with the current
period presentation.