eTrade 2011 Annual Report Download - page 113

receivables; the allowance for credit losses related to financing receivables; impaired loans (individually
evaluated for impairment); credit quality information; and modifications. The amended disclosure guidance
related to non-TDRs was effective January 1, 2011 for the Company, and the amended disclosure guidance
related to TDRs was effective July 1, 2011 for the Company. The Company’s disclosures reflect the adoption of
the amended disclosure guidance related to TDR and non-TDR information in Note 6—Loans Receivable, Net.
A Creditor’s Determination of Whether a Restructuring is a Troubled Debt Restructuring
In April 2011, the FASB amended the accounting guidance for TDRs. The amendments clarify the guidance
on a creditor’s evaluation of whether it has granted a concession and whether a debtor is experiencing financial
difficulties. The amended accounting guidance was effective July 1, 2011 for the Company, and was applied
retrospectively to January 1, 2011 for the Company. The adoption of the amended accounting guidance did not
affect the Company’s conclusion that the Company’s modification of loans through traditional collections actions
taken in the normal course of servicing delinquent accounts that typically result in an insignificant delay in the
timing of payments are not TDRs. The adoption of the amended accounting guidance did not have a material
impact on the Company’s financial condition, results of operations, or cash flows.
Reconsideration of Effective Control for Repurchase Agreements
In April 2011, the FASB amended the accounting guidance for repurchase agreements. The amendments
change the effective control assessment by removing the criterion that required the transferor to have the ability
to repurchase or redeem financial assets on substantially the agreed terms, even in the event of default by the
transferee, and the collateral maintenance guidance related to that criterion. The amended accounting guidance
became effective January 1, 2012 for the Company, and will be applied prospectively to transactions or
modifications of existing transactions that occur on or after the effective date. The adoption of the amended
accounting guidance did not have a material impact on the Company’s financial condition, results of operations,
or cash flows.
Amendments to Achieve Common Fair Value Measurement and Disclosure Requirements in U.S. GAAP and
IFRSs
In May 2011, the FASB amended the accounting and disclosure guidance related to fair value
measurements. The amended guidance will result in common fair value measurement and disclosure
requirements in GAAP and IFRSs. The amended guidance changes the wording used to describe certain
requirements in GAAP for measuring fair value and for disclosing information about fair value measurement.
The amended accounting guidance became effective January 1, 2012 for the Company, and will be applied
prospectively. The adoption of the amended guidance did not have a material impact on the Company’s financial
condition, results of operations, or cash flows.
Presentation of Comprehensive Income
In June 2011, the FASB amended the presentation guidance for comprehensive income. Among other
presentation changes, the amended guidance provides the option to present the total of comprehensive income,
the components of net income, and the components of other comprehensive income either in a single continuous
statement of comprehensive income or in two separate but consecutive statements. The amended presentation
guidance became effective January 1, 2012 for the Company.
Testing Goodwill for Impairment
In September 2011, the FASB amended the guidance on testing goodwill for impairment. The amended
guidance provides an option to perform a qualitative assessment to determine whether it is more likely than not
that the fair value of a reporting unit is impaired as a basis for determining if further testing of goodwill for
110