Voya 2014 Annual Report Download - page 281

Voya Financial, Inc.
Notes to the Consolidated Financial Statements
(Dollar amounts in millions, unless otherwise stated)
possible claims and assessments. Amounts related to loss contingencies are accrued and recorded in Other
liabilities on the Consolidated Balance Sheets if it is probable that a loss has been incurred and the amount can be
reasonably estimated, based on the Company’s best estimate of the ultimate outcome. If determined to meet the
criteria for a reserve, the Company also evaluates whether there are external legal or other costs directly
associated with the resolution of the matter and accrues such costs if estimable.
Adoption of New Pronouncements
Presentation of Unrecognized Tax Benefits
In July 2013, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update
(“ASU”) 2013-11, “Income Taxes (Accounting Standards Codification (“ASC”) Topic 740): Presentation of an
Unrecognized Tax Benefit When a Net Operating Loss Carryforward, a Similar Tax Loss, or a Tax Credit
Carryforward Exists” (“ASU 2013-11”), which clarifies that:
• An unrecognized tax benefit should be presented as a reduction to a deferred tax asset for a net
operating loss carryforward, a similar tax loss or a tax credit carryforward, except,
• An unrecognized tax benefit should be presented as a liability and not be combined with a deferred tax
asset (i) to the extent a net operating loss carryforward, a similar tax loss or a tax credit carryforward is
not available at the reporting date to settle any additional income taxes that would result from the
disallowance of a tax position or (ii) the tax law does not require the entity to use, or the entity does not
intend to use, the deferred tax asset for such a purpose.
• The assessment of whether a deferred tax asset is available is based on the unrecognized tax benefit and
deferred tax asset that exist at the reporting date and should be made presuming disallowance of the tax
position at the reporting date.
The provisions of ASU 2013-11 were adopted prospectively by the Company on January 1, 2014, to
unrecognized tax benefits existing on that date. The adoption had no effect on the Company’s financial condition,
results of operations or cash flows, as the guidance is consistent with that previously applied.
Investment Companies
In June 2013, the FASB issued ASU 2013-08, “Financial Services-Investment Companies (ASC Topic 946):
Amendments to the Scope, Measurement, and Disclosure Requirements” (“ASU 2013-08”), which provides
comprehensive guidance for assessing whether an entity is an investment company and requires an investment
company to measure noncontrolling ownership interests in other investment companies at fair value. ASU 2013-
08 also requires an entity to disclose that it is an investment company and any changes to that status, as well as
information about financial support provided or required to be provided to investees.
The provisions of ASU 2013-08 were adopted prospectively by the Company on January 1, 2014, for entities that
are investment companies at that date. The adoption had no effect on the Company’s financial condition, results
of operations or cash flows.
Joint and Several Liability Arrangements
In February 2013, the FASB issued ASU 2013-04, “Liabilities (ASC Topic 405): Obligations Resulting from
Joint and Several Liability Arrangements for Which the Total Amount of the Obligation Is Fixed at the Reporting
Date” (“ASU 2013-04”), which requires an entity to measure obligations resulting from joint and several liable
258