Accounting Changes and New Accounting Guidance

3 Months Ended

Mar. 31, 2014

New Accounting Pronouncements and Changes in Accounting Principles [Abstract]

Accounting changes and new accounting guidance

Accounting changes and new accounting guidance

ASU - 2014-01 - Accounting for Investments in Qualified Affordable Housing Projects - a Consensus of the FASB Emerging Issues Task Force

In January 2014, the Financial Accounting Standards Board (“FASB”) issued ASU 2014-01, “Accounting for Investments in Qualified Affordable Housing Projects - a Consensus of the FASB Emerging Issues Task Force.” This ASU permits entities that invest in a qualified affordable housing project through a limited liability entity to elect to account for the income statement effects of such investments using the proportional amortization method if certain conditions are met. The impact to the income statement was recorded in income tax expense. Investments in qualified affordable housing projects not accounted for using the proportional amortization method were accounted for as an equity method investment or cost method investment. In addition, the Company included the value of commitments to fund qualified affordable housing projects on the balance sheet.  These investments are recorded in other assets. In the first quarter of 2014, we restated the prior period financial statements to reflect the impact of the retrospective application of the new accounting guidance.

The table below presents the impact of the new accounting guidance on our previously reported earnings (loss) per share applicable to the common shareholders.

Earnings (loss) per share applicable to the common shareholders of The Bank of New York Mellon Corporation	As previously reported					As revised
(in dollars)	4Q13		1Q13			4Q13		1Q13
Basic	$	0.44	$	(0.23	)	$	0.44	$	(0.23	)
Diluted	$	0.44	$	(0.23	)	$	0.44	$	(0.23	)

This table below presents the impact of this new accounting guidance on our previously reported income statement amounts.

Income Statement	As previously reported						Adjustments				As revised
(in millions)	4Q13			1Q13			4Q13		1Q13		4Q13			1Q13
Investment and other income	$	(60	)	$	72		$	17	$	16	$	(43	)	$	88
Total fee revenue	2,758			2,796			17		16		2,775			2,812
Total fee and other revenue	2,797			2,844			17		16		2,814			2,860
Income before income taxes	711			809			17		16		728			825
Provision for income taxes	155			1,046			17		16		172			1,062
Net income (loss)	556			(237		)	—		—		556			(237		)
Net income (loss) applicable to shareholders of The Bank of New York Mellon Corporation	539			(253		)	—		—		539			(253		)
Net income (loss) applicable to common shareholders of The Bank of New York Mellon Corporation	513			(266		)	—		—		513			(266		)

The table below presents the impact of this new guidance on our previously reported balance sheet.

Balance sheet at Dec. 31, 2013 (in millions)	As previously reported		Adjustment			As revised
Other assets	$	20,360	$	206		$	20,566
Total assets of operations	363,038		206			363,244
Total assets	374,310		206			374,516
Accrued taxes and other expenses	6,985		11			6,996
Other liabilities	4,608		219			4,827
Total liabilities of operations	325,645		230			325,875
Total liabilities	335,776		230			336,006
Retained earnings	15,976		(24		)	15,952
The Bank of New York Mellon Corporation shareholders’ equity	37,521		(24		)	37,497
Permanent equity	38,304		(24		)	38,280
Total liabilities, temporary equity and permanent equity	374,310		206			374,516