American Express 2013 Annual Report Download - page 69

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AMERICAN EXPRESS COMPANY
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
OTHER SIGNIFICANT ACCOUNTING POLICIES
The following table identifies the Company’s other significant accounting policies, the Note and page where the Note can be found.
Significant Accounting Policy
Note
Number Note Title Page
Fair Value Measurements Note 3 Fair Values Page 68
Accounts Receivable Note 4 Accounts Receivable and Loans Page 72
Loans Note 4 Accounts Receivable and Loans Page 72
Reserves for Losses Note 5 Reserves for Losses Page 77
Investment Securities Note 6 Investment Securities Page 79
Asset Securitizations Note 7 Asset Securitizations Page 80
Goodwill and Other Intangible Assets Note 8 Other Assets Page 81
Membership Rewards Note 11 Other Liabilities Page 87
Derivative Financial Instruments and Hedging Activities Note 12 Derivatives and Hedging Activities Page 87
Income Taxes Note 17 Income Taxes Page 94
Stock-based Compensation Note 20 Stock Plans Page 97
Retirement Plans Note 21 Retirement Plans Page 98
Regulatory Matters and Capital Adequacy Note 23 Regulatory Matters and Capital Adequacy Page 100
Legal Contingencies Note 24 Commitments and Contingencies Page 101
Reportable Operating Segments Note 25 Reportable Operating Segments and Geographic Operations Page 102
RECENTLY ISSUED ACCOUNTING STANDARDS
The Financial Accounting Standards Board recently issued
Accounting Standards Update (ASU) No. 2014-01, Investments –
Equity Method and Joint Ventures (Topic 323): Accounting for
Investments in Qualified Affordable Housing Projects. Provided
certain conditions are met, this standard permits entities to account
for investments in qualified affordable housing projects using the
proportional amortization method, which results in amortizing the
initial cost of the investment in proportion to the tax credits and other
tax benefits received, and recognizing the net investment performance
in the income statement as a component of income tax expense.
Additionally, the standard requires new disclosures about all
investments in qualified affordable housing projects irrespective of the
method used to account for the investments. The standard, which is to
be retrospectively applied, will be effective beginning in the first
quarter of 2015; however, early adoption is permitted. This standard is
not expected to have a material impact on the Company’s financial
position or results of operations upon adoption.
CLASSIFICATION OF VARIOUS ITEMS
Certain reclassifications of prior period amounts have been made to
conform to the current period presentation. These reclassifications did
not have a material impact on the Company’s financial position,
results of operations or cash flows.
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