Windstream 2015 Annual Report Download - page 188

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
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F-58
2. Summary of Significant Accounting Policies and Changes, Continued:
On July 9, 2015, the FASB deferred the effective date by one year to December 15, 2017 for annual reporting periods beginning
after that date, or January 1, 2018, for calendar companies like Windstream. Entities are permitted to early adopt the standard, but
not before the original effective date of December 15, 2016. We are in the process of determining the method of adoption and
assessing the impact the new standard will have on our consolidated financial statements. We expect to adopt this standard effective
January 1, 2018.
Fair Value Measurement Disclosures – In May 2015, the FASB issued ASU No. 2015-07, Disclosures for Investments in Certain
Entities That Calculate Net Asset Value Per Share (or Its Equivalent), which amends certain fair value measurement disclosures
(“ASU 2015-07”). The standard removes the requirement to categorize within the fair value hierarchy investments for which fair
value is measured using the net asset value per share practical expedient and also removes certain related disclosure requirements.
ASU 2015-07 is effective retrospectively for fiscal years, and interim periods within those years, beginning after December 31,
2015, with early adoption permitted.
Pension Plan Investment Disclosures – In July 2015, the FASB issued ASU No. 2015-12, Plan Accounting: Defined Benefit Pension
Plans (Topic 960), Defined Contribution Plans (Topic 962), Health and Welfare Benefit Plans (Topic 965) (“ ASU 2015-12”). This
standard eliminates the requirement to measure the fair value of fully benefit-responsive investment contracts and provide the
related fair value disclosures. Under the new guidance, fully benefit-responsive investment contracts will be measured and disclosed
only at contract value. The standard also eliminates certain disclosure requirements related to an employee benefit plan’s investments
presented in the plan’s standalone financial statements. ASU 2015-12 is effective retrospectively for fiscal years beginning after
December 31, 2015, with early adoption permitted. Adoption of ASU 2015-07 and 2015-12 will impact certain of the disclosures
related to our qualified pension plan assets, but otherwise is not expected to have a material impact on our consolidated financial
statements.
Valuation of Inventory – In July 2015, the FASB issued ASU No. 2015-11, Simplifying the Measurement of Inventory (“ASU
2015-11”). The updated guidance requires that an entity should measure inventory valued using a first-in, first-out or average cost
method at the lower of cost and net realizable value. Net realizable value is defined as the estimated selling price in the ordinary
course of business, less reasonably predictable costs of completion, disposal, and transportation. ASU 2015-11 should be applied
on a prospective basis and is effective for fiscal years, and interim periods within those years, beginning after December 15, 2016,
with early adoption permitted. We are currently assessing the timing of adoption of ASU 2015-11, however, we do not expect it
to have a material impact to our consolidated results of operations, financial position or cash flows.
Measurement Period Adjustments in a Business Combination – In September 2015, the FASB issued ASU No. 2015-16, Simplifying
the Accounting for Measurement-Period Adjustments (“ASU 2015-16”), which eliminates the requirement to restate prior period
financial statements for measurement period adjustments related to a business combination. The standard requires that the
cumulative impact of a measurement period adjustment be recognized in the reporting period in which the adjustment is identified.
ASU 2015-16 also requires companies to disclose the portion of the adjustment recorded in current-period earnings by line item
that would have been recorded in previous reporting periods if the adjustment to the provisional amounts had been recognized as
of the acquisition date, either separately in the income statement or in the notes. ASU 2015-16 is effective prospectively for annual
and interim periods after December 15, 2015, with early adoption permitted. We do not expect the adoption of ASU 2015-16 to
have a material impact on our consolidated financial statements.