BB&T 2013 Annual Report Download - page 100

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100
Changes in Accounting Principles and Effects of New Accounting Pronouncements
In January 2014, the FASB issued new guidance related to Troubled Debt Restructurings, which clarifies the timing of when
an in substance repossession or foreclosure of collateralized residential real property is deemed to have occurred. The
guidance also requires new disclosures related to the amount of foreclosed residential real estate property held by the creditor
and the recorded investment in consumer mortgage loans collateralized by residential real estate property that are in the
process of foreclosure. This guidance is effective for interim and annual reporting periods beginning after December 15,
2014. The adoption of this guidance is not expected to be material to the consolidated financial position, results of operations
or cash flows.
In January 2014, the FASB issued new guidance related to Investments in Qualified Affordable Housing Projects. The new
guidance allows an entity, provided certain criteria are met, to elect the proportional amortization method to account for these
investments. The proportional amortization method allows an entity to amortize the initial cost of the investment in
proportion to the amount of tax credits and other tax benefits received and recognize the net investment performance in the
income statement as a component of the provision for income taxes. This guidance is effective for interim and annual
reporting periods beginning after December 15, 2014. BB&T is currently evaluating this guidance to determine the impact on
its consolidated financial position, results of operations and cash flows.
In June 2013, the FASB issued new guidance related to Investment Companies. The new guidance amends the criteria for an
entity to qualify as an investment company and requires an investment company to measure all of its investments at fair
value. This guidance is effective for interim and annual reporting periods beginning after December 15, 2013. The adoption
of this guidance was not material to the consolidated financial position, results of operations or cash flows.
Effective January 1, 2013, the Company adopted 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, repurchase
agreements 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 did not impact the consolidated financial
position, results of operations or cash flows. The new disclosures required by this guidance for derivatives are included in
Note 18 “Derivative Financial Instruments” to these consolidated financial statements. The adoption of this guidance did not
impact our disclosures of repurchase agreements and securities borrowing and lending transactions as the balances and
volume of transactions are not material.
Effective January 1, 2013, the Company adopted 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, the adoption of this guidance had no
impact on the consolidated financial position, results of operations or cash flows.
Effective January 1, 2013, the Company adopted 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 did not impact the consolidated financial position, results of operations or cash flows. The new disclosures required
by this guidance are included in Note 11 “AOCI” to these consolidated financial statements.