Vectren 2013 Annual Report Download - page 121

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119
23. Impact of Recently Issued Accounting Guidance
Offsetting Assets and Liabilities
In January 2013, the FASB issued new accounting guidance on disclosures of offsetting assets and liabilities. This guidance
amends prior requirements to add clarification to the scope of the offsetting disclosures. The amendment clarifies that the scope
applies to derivative instruments accounted for in accordance with reporting topics on derivatives and hedging, including
bifurcated embedded derivatives, repurchase agreements and reverse repurchase agreements, and securities borrowing and
securities lending transactions that are either offset in accordance with US GAAP or subject to an enforceable master netting
arrangement or similar agreement. This guidance is effective for fiscal years beginning on or after January 1, 2013 and interim
periods within annual periods. The Company adopted this guidance as of January 1, 2013. The adoption of this guidance did
not have a material impact on the Company's financial statements.
Accumulated Other Comprehensive Income (AOCI)
In February 2013, the FASB issued new accounting guidance on the reporting of reclassifications from AOCI. The guidance
requires an entity to report the effect of significant reclassification from AOCI on the respective line items in net income if the
amount being reclassified is required under US GAAP to be reclassified in its entirety to net income. For other amounts that are
not required under US GAAP to be reclassified in their entirety to net income in the same reporting period, an entity is required
to cross-reference to other disclosures required that provide additional details about these amounts. The new guidance is
effective for fiscal years, and interim periods within annual periods, beginning after December 15, 2012. As this guidance
provides only disclosure requirements, the adoption of this standard did not impact the Company's results of operations, cash
flows or financial position.
Unrecognized Tax Benefit Presentation
In July 2013, the FASB issued new accounting guidance on presenting an unrecognized tax benefit when net operating loss
carryforwards exist. The new standard was issued in an effort to eliminate diversity in practice resulting from a lack of guidance
on this topic in the current US GAAP. The update provides that an unrecognized tax benefit, or a portion of an unrecognized tax
benefit, should be presented in the financial statements as a reduction to a deferred tax asset for a net operating loss
carryforward, a similar tax loss, or a tax credit carryforward, except under certain circumstances outlined in the update. The
amendments in the update are effective for fiscal years, and interim periods within those years, beginning after December 15,
2013, with early adoption permitted. This update is consistent with how the Company currently presents unrecognized tax
benefits, therefore, adoption of this guidance resulted in no material impact on the Company's financial statements.