Rayovac 2015 Annual Report Download - page 83

line item that would have been recorded in previous reporting periods if the adjustment to the estimated amounts
had been recognized as of the acquisition date. The ASU will become effective for us beginning in the first
quarter of our fiscal year ending September 30, 2017, with early adoption permitted. The amendments are applied
to adjustments to provision amounts that occur after the effective date and the impact of the adoption of this
guidance on the Company’s consolidated financial statements will depend on the future business combination
activity.
In July 2015, the FASB issued ASU 2015-11, Inventory (Topic 330) Simplifying the Measurement of
Inventory, which changes the measurement principle for inventory from the lower of cost or market to lower of
cost and net realizable value. Net realizable value is defined as the estimated selling prices in the ordinary course
of business, less reasonably predictable costs of completion, disposal and transportation. This ASU eliminates the
guidance that entities consider replacement cost or net realizable value less an approximately normal profit
margin in the subsequent measurement of inventory when cost is determined on a first-in, first-out or average
cost basis. The ASU will become effective for us beginning in the first quarter of our fiscal year ending
September 30, 2018, with early adoption permitted. We are currently assessing the impact this pronouncement
will have on the consolidated financial statements of the Company.
In April 2015, the FASB issued ASU No. 2015-03, Interest—Imputation of Interest (Subtopic 835-30):
Simplifying the Presentation of Debt Issuance Costs. This ASU requires debt issuance costs related to a
recognized debt liability to be presented on the balance sheet as a direct deduction from the debt liability, similar
to the presentation of debt discounts. This ASU will become effective for us beginning in the first quarter of our
fiscal year ending September 30, 2017, with early adoption permitted. We are currently assessing the impact this
pronouncement will have on the consolidated financial statements of the Company.
In April 2015, the FASB issued ASU No. 2015-05, Intangibles—Goodwill and Other—Internal-Use
Software (Subtopic 350-40) Customer’s Accounting for Fees Paid in Cloud Computing Arrangements, which
provides for guidance on the accounting for fees paid in cloud computing arrangements. The ASU provides
guidance to customers about whether the cloud computing arrangement includes a software license, which could
be accounted for as a separate element of the arrangement similar to the acquisition of other software licenses.
The absence of a software license would result in recognizing the arrangement as a service contract. This ASU
will become effective for us beginning in the first quarter of our fiscal year ending September 30, 2017, with
early adoption permitted. We are currently assessing the impact this pronouncement will have on the
consolidated financial statements of the Company.
In August 2014, the FASB issued ASU No. 2014-15, Presentation of Financial Statements—Going Concern
(Subtopic 205-40) Disclosure of Uncertainties about the Entity’s Ability to Continue as a Going Concern, which
provides guidance on determining when and how reporting entities must disclose going-concern uncertainties in
their financial statements. The new standard requires management to perform interim and annual assessments of
an entity’s ability to continue as a going concern for a period of one year from the date of issuance of the entity’s
financial statements. Further, an entity must provide certain disclosures if there is substantial doubt about the
entity’s ability to continue as a going concern. This ASU will become effective for us beginning in the first
quarter of our fiscal year ending September 30, 2017. The adoption of this guidance is not expected to have a
material impact on the Company’s consolidated financial statements.
In April, 2014, the FASB issued ASU No. 2014-08, Presentation of Financial Statements (Topic 2015) and
Property, Plant and Equipment (Topic 360) Reporting Discontinued Operations and Disclosures of Disposals of
Components of an Entity. This ASU changes the criteria for reporting discontinued operations where only
disposals representing a strategic shift in operations should be presented as discontinued operations. Such
strategic shifts should have a major effect on the organization’s operating and financial results. This new
guidance also expanded the disclosure requirements about discontinued operations. This ASU will become
effective for us during our fiscal year ending September 30, 2016. The impact of the adoption of this guidance on
the Company’s consolidated financial statements will depend on the Company’s future disposal activity.
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