BB&T 2012 Annual Report Download - page 115

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93
assets is based on the expected returns for each major asset class in which the plan invests, adjusted for the weight of each
asset class in the target mix.
Insurance Income
Insurance commission revenue is recognized at the later of the billing date or the effective date of the related insurance
policies. Insurance premiums from underwriting activities are recognized as income over the policy term. The portion of
premiums that will be earned in the future is deferred and included in other liabilities in the Consolidated Balance Sheets.
Changes in Accounting Principles and Effects of New Accounting Pronouncements
Effective January 1, 2012, the Company adopted new guidance impacting Fair Value Measurements and Disclosures. The
new guidance requires: quantitative information about the significant unobservable inputs used for Level 3 measurements; a
qualitative discussion about the sensitivity of recurring Level 3 measurements to changes in the unobservable inputs
disclosed, including the interrelationship between inputs; and a description of the company’ s valuation processes. The
adoption of this guidance had no impact on BB&T’ s consolidated financial position, results of operations or cash flows. The
new disclosures required by this guidance are included in Note 18 to these consolidated financial statements.
Effective January 1, 2012, the Company adopted new guidance impacting Comprehensive Income that requires all changes in
OCI to be presented either in a single continuous statement of comprehensive income or in two separate but consecutive
financial statements. The guidance does not change the items that must be reported in OCI. BB&T has elected to present
two separate but consecutive financial statements.
Effective January 1, 2012, the Company adopted new guidance impacting Intangibles that permits an entity to first assess
qualitative factors to determine whether the two step goodwill impairment test is required. The adoption of this guidance had
no impact on BB&T’ s consolidated financial position, results of operations or cash flows.
Effective January 1, 2013, the Company will adopt new guidance impacting the presentation of certain items on the Balance
Sheet. The new guidance requires an entity to disclose both gross and net information about derivatives and securities
borrowing and lending transactions that have a right of setoff or are subject to an enforceable master netting arrangement or
similar agreement. The adoption of this guidance will not impact BB&T’ s consolidated financial position, results of
operations or cash flows, but may result in certain additional disclosures.
Effective January 1, 2013, the Company will adopt new guidance on Business Combinations. The new guidance clarifies that
when a reporting entity recognizes an indemnification asset as a result of a government-assisted acquisition of a financial
institution and subsequently a change in the cash flows expected to be collected on the indemnification asset occurs, the
reporting entity should account for the change in the measurement of the indemnification asset on the same basis as the
change in the assets subject to indemnification. Any amortization of changes in value should be limited to the lesser of the
contractual term of the indemnification agreement or the remaining life of the indemnified assets. BB&T has previously
accounted for its indemnification asset in accordance with this guidance; accordingly, this guidance will have no impact on
BB&T’ s consolidated financial position, results of operations or cash flows.
Effective January 1, 2013, the Company will adopt new guidance impacting Comprehensive Income that requires a reporting
entity to present significant amounts reclassified out of AOCI by the respective line items of net income. The adoption of
this guidance will not impact BB&T’ s consolidated financial position, results of operations or cash flows, but may result in
certain additional disclosures.