| Recent Accounting Standards |
RECENT ACCOUNTING STANDARDS
The following table provides a brief description of recent accounting standards that had not been adopted by the Partnership as of March 31, 2016:
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Standard |
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Description |
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Expected Date of Adoption |
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Effect on our Consolidated Financial Statements or Other Significant Matters |
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ASU 2014-09, Revenue from Contracts with Customers (Topic 606), and subsequent amendments thereto
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This standard amends existing revenue recognition guidance and requires an entity to recognize revenue to depict the transfer of promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services. This guidance may be early adopted beginning January 1, 2017, and may be adopted either retrospectively to each prior reporting period presented or as a cumulative-effect adjustment as of the date of adoption. |
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January 1, 2018 |
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We are currently evaluating the impact of the provisions of this guidance on our Consolidated Financial Statements and related disclosures.
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ASU 2014-15, Presentation of Financial Statements-Going Concern (Subtopic 205-40): Disclosure of Uncertainties about an Entity’s Ability to Continue as a Going Concern
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This standard requires an entity’s management to evaluate, for each reporting period, whether there are conditions and events that raise substantial doubt about the entity’s ability to continue as a going concern within one year after the financial statements are issued. Additional disclosures are required if management concludes that conditions or events raise substantial doubt about the entity’s ability to continue as a going concern. Early adoption is permitted. |
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December 31, 2016 |
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The adoption of this guidance is not expected to have an impact on our Consolidated Financial Statements or related disclosures.
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ASU 2015-11, Inventory (Topic 330): Simplifying the Measurement of Inventory
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This standard requires inventory to be measured at the lower of cost and net realizable value. Net realizable value is the estimated selling prices in the ordinary course of business, less reasonably predictable costs of completion, disposal and transportation. This guidance may be early adopted and must be adopted prospectively. |
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January 1, 2017 |
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We are currently evaluating the impact of the provisions of this guidance on our Consolidated Financial Statements and related disclosures. |
ASU 2016-02, Leases (Topic 842)
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This standard requires a lessee to recognize leases on its balance sheet by recording a liability representing the obligation to make future lease payments and a right-of-use asset representing the right to use the underlying asset for the lease term. A lessee is permitted to make an election not to recognize lease assets and liabilities for leases with a term of 12 months or less. The standard also modifies the definition of a lease and requires expanded disclosures. This guidance may be early adopted, and must be adopted using a modified retrospective approach with certain available practical expedients. |
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January 1, 2019
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We are currently evaluating the impact of the provisions of this guidance on our Consolidated Financial Statements and related disclosures. |
Additionally, the following table provides a brief description of recent accounting standards that were adopted by the Partnership during the reporting period:
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Standard |
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Description |
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Date of Adoption |
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Effect on our Consolidated Financial Statements or Other Significant Matters |
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ASU 2015-02, Consolidation (Topic 810): Amendments to the Consolidation Analysis
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These amendments primarily affect asset managers and reporting entities involved with limited partnerships or similar entities, but the analysis is relevant in the evaluation of any reporting organization’s requirement to consolidate a legal entity. This guidance changes (1) the identification of variable interests, (2) the variable interest entity characteristics for a limited partnership or similar entity and (3) the primary beneficiary determination. This guidance may be early adopted, and may be adopted either retrospectively to each prior reporting period presented or as a cumulative-effect adjustment as of the date of adoption. |
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January 1, 2016 |
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The adoption of this guidance did not have an impact on our Consolidated Financial Statements or related disclosures.
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ASU 2015-03, Interest - Imputation of Interest (Subtopic 835-30): Simplifying the Presentation of Debt Issuance Costs and ASU 2015-15, Presentation and Subsequent Measurement of Debt Issuance Costs Associated with Line-of-Credit Arrangements
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These standards require debt issuance costs related to a recognized debt liability to be presented in the balance sheet as a direct deduction from the debt liability rather than as an asset. Debt issuance costs incurred in connection with line of credit arrangements may be presented as an asset and subsequently amortized ratably over the term of the line of credit arrangement. This guidance may be early adopted, and must be adopted retrospectively to each prior reporting period presented. |
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January 1, 2016 |
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Upon adoption of these standards, the balance of debt, net was reduced by the balance of debt issuance costs, net, except for the balance related to line of credit arrangements, on our Consolidated Balance Sheets. See Note 9—Debt for required disclosures for a change in accounting principle.
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ASU 2015-06, Earnings Per Share (Topic 260): Effects on Historical Earnings per Unit of Master Limited Partnership Dropdown Transactions
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This standard requires a master limited partnership to allocate net income (losses) of a transferred business entirely to the general partner when computing earnings per unit for periods before the dropdown transaction occurred. This guidance also requires a master limited partnership to disclose the effects of the dropdown transaction on net income (losses) per unit for the periods before and after the dropdown transaction occurred. This guidance may be early adopted, and must be adopted retrospectively to each prior reporting period presented. |
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January 1, 2016 |
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The adoption of this guidance did not have an impact on our Consolidated Financial Statements or related disclosures.
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