Visa 2015 Annual Report Download - page 95

VISA INC.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS—(Continued)
September 30, 2015
Earnings per share. The Company calculates earnings per share using the two-class method to
reflect the different rights of each class and series of outstanding common stock. The dilutive effect of
incremental common stock equivalents is reflected in diluted earnings per share by application of the
treasury stock method. See Note 15—Earnings Per Share.
Recently Issued Accounting Pronouncements
In February 2013, the Financial Accounting Standards Board (“FASB”) issued Accounting
Standards Update (“ASU”) 2013-04, which provides guidance for the recognition, measurement and
disclosure of obligations resulting from joint and several liability arrangements for which the total
amount of the obligation is fixed at the reporting date. The Company adopted the standard effective
October 1, 2014. The adoption did not have a material impact on the consolidated financial statements.
In March 2013, the FASB issued ASU 2013-05, which clarifies the applicable guidance for the
release of the cumulative translation adjustment into net income when a parent either sells a part or all
of its investment in a foreign entity, or no longer holds a controlling financial interest in a subsidiary or
group of assets that is a nonprofit activity or a business within a foreign entity. The Company adopted
the standard effective October 1, 2014. The adoption did not have a material impact on the
consolidated financial statements.
In July 2013, the FASB issued ASU 2013-11, which provides guidance for the financial statement
presentation of an unrecognized tax benefit when a net operating loss carryforward, a similar tax loss
or a tax credit carryforward exists. The Company adopted the standard effective October 1, 2014. The
adoption did not have a material impact on the consolidated financial statements.
In May 2014, the FASB issued ASU No. 2014-09, which requires an entity to recognize the
amount of revenue to which it expects to be entitled for the transfer of goods or services to customers.
The ASU will replace existing revenue recognition guidance in U.S. GAAP when it becomes effective.
In August 2015, the FASB issued ASU No. 2015-14, which defers the effective date of ASU No. 2014-
09 by one year. The Company will adopt the standard effective October 1, 2018.The standard permits
the use of either the retrospective or cumulative effect transition method. The Company is evaluating
the effect that ASU 2014-09 will have on its consolidated financial statements and related disclosures.
The Company has not yet selected a transition method and is evaluating the full effect of the standard
on its ongoing financial reporting.
In June 2014, the FASB issued ASU No. 2014-12, which requires a performance target in stock
compensation awards that affects vesting, and is achievable after the requisite service period, be
treated as a performance condition. The Company will adopt the standard effective October 1, 2016.
The adoption is not expected to have a material impact on the consolidated financial statements.
In April 2015, the FASB issued ASU No. 2015-03, which simplifies the presentation of debt
issuance costs by requiring that debt issuance costs be presented in the balance sheet as a direct
deduction from the carrying amount of debt liability, consistent with debt discounts and premiums.
Subsequently, in August 2015, the FASB issued ASU No. 2015-15, which adds SEC staff guidance on
the presentation of debt issuance costs related to line-of-credit arrangements, allowing for the deferral
and presentation of debt issuance costs as an asset and subsequent amortization of the deferred debt
issuance costs ratably over the term of the line-of-credit arrangement, regardless of whether there are
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