Accounting Changes and New Accounting Guidance

9 Months Ended

Sep. 30, 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 per share applicable to the common shareholders.

Earnings per share applicable to the common shareholders of The Bank of New York Mellon Corporation	As previously reported				As revised
(in dollars)	3Q13		YTD13		3Q13		YTD13
Basic	$	0.83	$	1.31	$	0.82	$	1.30
Diluted	$	0.82	$	1.30	$	0.82	$	1.30

The table below presents the impact of the new accounting guidance on our previously reported income statements.

Income statement	As previously reported					Adjustments						As revised
(in millions)	3Q13			YTD13		3Q13			YTD13			3Q13		YTD13
Investment and other income	$	135		$	476	$	16		$	48		$	151	$	524
Total fee revenue	2,941			8,892		16			48			2,957		8,940
Total fee and other revenue	2,963			8,994		16			48			2,979		9,042
Income before income taxes	986			3,001		16			48			1,002		3,049
Provision (benefit) for income taxes	(2		)	1,365		21			55			19		1,420
Net income (loss)	988			1,636		(5		)	(7		)	983		1,629
Net income (loss) applicable to shareholders of The Bank of New York Mellon Corporation	980			1,572		(5		)	(7		)	975		1,565
Net income (loss) applicable to common shareholders of The Bank of New York Mellon Corporation	967			1,534		(5		)	(7		)	962		1,527