Nucor 2015 Annual Report Download - page 57

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Foreign Currency Translation For Nucor’s operations where the functional currency is other than the U.S. dollar, assets and liabilities
have been translated at year-end exchange rates and income and expenses translated using average exchange rates for the respective
periods. Adjustments resulting from the process of translating an entity’s financial statements into the U.S. dollar have been recorded
in accumulated other comprehensive income (loss) and are included in net earnings only upon sale or liquidation of the underlying
investments. Foreign currency transaction gains and losses are included in net earnings in the period they occur.
Recently Adopted Accounting Pronouncements In the first quarter of 2015, Nucor adopted new accounting guidance which
changes the criteria for determining which disposals can be presented as discontinued operations and modifies related disclosure
requirements. This standard is applied prospectively for the Company beginning January 1, 2015. The adoption of this standard
did not have a material effect on the Company’s consolidated financial statements.
In November 2015, new accounting guidance was issued that requires entities to present deferred tax assets and deferred tax
liabilities, along with any related valuation allowance, as noncurrent in a balance sheet. The standard is effective for annual and
interim periods beginning after December 15, 2016, with early adoption permitted. We have early adopted this new guidance
prospectively beginning with the consolidated balance sheet at December 31, 2015. Prior periods were not retrospectively adjusted.
Recently Issued Accounting Pronouncements In May 2014, new accounting guidance was issued that will supersede nearly all
existing accounting guidance related to revenue recognition. The new guidance provides that an entity recognizes revenue when it
transfers promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be
entitled in exchange for those goods or services. This update 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. In August 2015, additional accounting guidance
was issued that deferred the effective date of this new accounting guidance by one year. As a result, the amendments are effective
for the Company for annual and interim reporting periods beginning after December 15, 2017. The Company is evaluating adoption
methods and the impact the amendments will have on its consolidated financial statements.
In August 2014, new accounting guidance was issued that specifies the responsibility that an entity’s management has to evaluate
whether there is substantial doubt about the entity’s ability to continue as a going concern. The standard is effective for the Company
for annual and interim periods beginning after December 15, 2016, and is not expected to have an effect on the Company’s
consolidated financial statements.
In April 2015, new accounting guidance was issued that requires 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.
This new guidance is effective for the Company for annual and interim periods beginning after December 15, 2015, and is not
expected to have a material effect on the Company’s consolidated financial statements.
In September 2015, new accounting guidance was issued that requires an acquirer in a business combination to recognize
adjustments to provisional amounts that are identified during the measurement period in the reporting period in which the
adjustment amounts are determined. The standard is effective for the Company for annual and interim periods beginning after
December 15, 2015, and is not expected to have a material effect on the Company’s consolidated financial statements.
In January 2016, new accounting guidance was issued regarding the recognition and measurement of financial assets and financial
liabilities. Changes to the current GAAP model primarily affect the accounting for equity investments, financial liabilities under the fair
value option and the presentation and disclosure requirements for financial instruments. In addition, the Financial Accounting Standards
Board clarified guidance related to the valuation allowance assessment when recognizing deferred tax assets resulting from unrealized
losses on available-for-sale debt securities. The accounting for other financial instruments, such as loans, investments in debt securities
and financial liabilities is largely unchanged. The standard is effective for the Company for annual and interim periods beginning after
December 15, 2017, and is not expected to have a material effect on the Company’s consolidated financial statements.