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New Accounting Guidance Pending Adoption
3 Months Ended
Mar. 31, 2013
New Accounting Guidance Pending Adoption [Abstract]  
New Accounting Guidance Pending Adoption

19. New Accounting Guidance Pending Adoption

 

(PPL, PPL Energy Supply, PPL Electric, LKE, LG&E and KU)

 

Accounting for Obligations Resulting from Joint and Several Liability Arrangements

 

Effective January 1, 2014, the Registrants will retrospectively adopt accounting guidance for the recognition, measurement and disclosure of certain obligations resulting from joint and several liability arrangements when the amount of the obligation is fixed at the reporting date. If the obligation is determined to be in the scope of this guidance, it will be measured as the sum of the amount the reporting entity agreed to pay on the basis of its arrangements among its co-obligors and any additional amount the reporting entity expects to pay on behalf of its co-obligors. This guidance also requires additional disclosures for these obligations.

 

The Registrants are assessing the potential impact of adoption, which could be material.

 

Accounting for the Cumulative Translation Adjustment upon Derecognition of Certain Subsidiaries or Groups of Assets within a Foreign Entity or of an Investment in a Foreign Entity

 

Effective January 1, 2014, PPL will prospectively adopt accounting guidance that requires a cumulative translation adjustment to be released into earnings when an entity ceases to have a controlling financial interest in a subsidiary or group of assets within a consolidated foreign entity and the sale or transfer results in the complete or substantially complete liquidation of the foreign entity. For the step acquisition of previously held equity method investments that are foreign entities, this guidance clarifies that the amount of accumulated other comprehensive income that is reclassified and included in the calculation of a gain or loss shall include any foreign currency translation adjustment related to that previously held investment.

 

The initial adoption of this guidance is not expected to have a significant impact on PPL; however, the impact in future periods could be material.