UPS 2015 Annual Report Download - page 82

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UNITED PARCEL SERVICE, INC. AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
70
standard on a retrospective basis in the fourth quarter of 2015 as we expect it to reduce the complexity in the preparation of our
consolidated financial statements. We have reclassified $590 and $18 million of current deferred tax assets and liabilities,
respectively, to non-current assets and liabilities within our consolidated financial position in 2014. This accounting standards
update did not have a material impact on our results of operations.
In September 2015, the FASB issued an accounting standards update that simplifies the accounting for measurement-
period adjustments related to business combinations. This update removes the requirement to retrospectively apply adjustments
made to estimated amounts recognized in a business combination. This update permits the purchaser to adjust the estimated
amounts in the reporting period in which the adjustment amounts are determined. This new guidance would have become
effective for us in the first quarter of 2016; however, we have elected to early adopt this standard in the third quarter of 2015 as
we expect it to reduce the complexity in the preparation of our consolidated financial statements. This accounting standards
update did not have a material impact on our consolidated financial position or results of operations.
In April 2015, the FASB issued an accounting standards update to simplify the presentation of debt issuance costs. This
update amends existing guidance to require the presentation of debt issuance costs in the consolidated balance sheets as a direct
deduction from the carrying amount of the associated debt liability instead of a deferred charge. In August 2015, the FASB
issued updated guidance pertaining to the presentation of debt issuance costs related to line-of-credit arrangements. This update
allows an entity to defer and present debt issuance costs as an asset, subsequently amortizing the deferred debt issuance costs
over the term of the line-of-credit arrangement, regardless of whether there are any outstanding borrowings on the line-of-credit
arrangement. We have elected to early adopt this standard in the fourth quarter of 2015 on a retrospective basis as we expect it
to reduce the complexity in the preparation of our consolidated financial statements. This accounting standards update did not
have a material impact on our consolidated financial position or results of operations.
In June 2014, the FASB issued an accounting standards update for companies that grant their employees share-based
payments in which the terms of the award provided that a performance target that affects vesting could be achieved after the
requisite service period. This new guidance became effective for us in the first quarter of 2015 and did not have a material
impact on our consolidated financial position or results of operations.
Accounting Standards Issued But Not Yet Effective
In May 2015, the FASB issued an accounting standards update that changes the disclosure requirement for reporting
investments at fair value. This update removes the requirement to categorize investments for which fair value is measured using
the net asset value per share practical expedient within the fair value hierarchy. These disclosures are limited to investments for
which the entity has elected to measure the fair value using that practical expedient. This new guidance will be applied
retrospectively and become effective for us in the first quarter of 2016, but early adoption is permitted. At this time, we do not
expect this new guidance to have a material impact on our disclosures.
In May 2014, the FASB issued an accounting standards update that changes the revenue recognition for companies that
enter into contracts with customers to transfer goods or services. This amended guidance requires revenue to be recognized in
an amount that reflects the consideration to which the company expects to be entitled for those goods and services when the
performance obligation has been satisfied. This amended guidance also requires enhanced disclosures regarding the nature,
amount, timing and uncertainty of revenue and related cash flows arising from contracts with customers. In August 2015, the
FASB issued an accounting standards update that defers the effective date of the new revenue recognition guidance for one year
to interim and annual reporting periods beginning after December 15, 2017. Early adoption is permitted, but not before the
original effective date beginning after December 15, 2016. At this time, we do not expect this accounting standards update to
have a material impact on our consolidated financial position or results of operations.
Changes in Presentation
Certain prior year amounts have been reclassified to conform to the current year presentation. These reclassifications had
no impact on our financial position or results of operations.