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New Accounting Pronouncements (Policies)
 9 Months Ended
Sep. 30, 2023
Accounting Policies  
New accounting pronouncements policies
Recently Adopted Accounting Standards Updates
Standard
Description
Date of adoption
Effect on the financial statements
 
FASB ASU 2023-04,
Liabilities (Topic 405)
The
 
Financial Accounting
 
Standards Board
("FASB")
 
issued
 
Accounting
 
Standards
Update
 
(“ASU”)
 
2023-04
 
in
 
August
 
2023
which
 
amends
 
paragraphs
 
within
 
ASC
Topic
 
405
 
to
 
clarify
 
the
 
accounting
 
and
disclosure
 
for
 
obligations
 
to
 
safeguard
Crypto-Assets
 
held
 
by
 
an
 
entity
 
for
 
its
platform users.
August 2023
The
 
Corporation
 
was
 
not
 
impacted
 
by
the
 
adoption of
 
this
 
ASU
 
since
 
it does
not
 
hold
 
Crypto-Assets
 
for
 
its
 
platform
users.
FASB ASU 2023-03,
Presentation of Financial
Statements (Topic 205),
Income Statement—
Reporting Comprehensive
Income (Topic 220),
Distinguishing Liabilities
from Equity (Topic 480),
Equity (505), and
Compensation—Stock
Compensation (Topic 718)
 
The
 
FASB
 
issued
 
ASU
 
2023-03
 
in
 
July
2023 which
 
amends or
 
supersedes various
SEC
 
paragraphs
 
within
 
the
 
Codification
 
to
conform
 
to
 
past
 
SEC
 
announcements
 
and
guidance
 
which
 
updated
 
SAB
 
Topics
 
5.T,
14, and 6. B.
July 1, 2023
The
 
Corporation
 
was
 
not
 
impacted
 
by
the
 
adoption
 
of
 
this
 
ASU
 
since
 
it
codifies previous guidance.
 
FASB ASU 2022-05,
Financial Services -
Insurance (Topic 944)
Transition for Sold
Contracts
The
 
FASB
 
issued
 
ASU
 
2022-05
 
in
December 2022, which
 
allows an insurance
entity to make an
 
accounting policy election
of
 
applying
 
the
 
Long-Duration
 
Contracts
(LDTI) transition guidance
 
on a transaction-
by-transaction
 
basis
 
if
 
the
 
contracts
 
have
been
 
derecognized
 
because
 
of
 
a
 
sale
 
or
disposal
 
and
 
the
 
insurance
 
entity
 
has
 
no
significant
 
continuing
 
involvement
 
with
 
the
derecognized contract.
January 1, 2023
The
 
Corporation
 
was
 
not
 
impacted
 
by
the
 
adoption
 
of
 
ASU
 
2022-05
 
during
the
 
first
 
quarter
 
of
 
2023
 
since
 
it
 
does
not
 
hold
 
Long-Duration
 
Contracts
(LDTI).
FASB ASU 2022-04,
Liabilities—Supplier
Finance Programs
(Subtopic 405-50)
Disclosure of Supplier
Finance Program
Obligations
The
 
FASB
 
issued
 
ASU
 
2022-04
 
in
September 2022, which requires to disclose
information
 
about
 
the
 
use
 
of
 
supplier
finance
 
programs
 
in
 
connection
 
with
 
the
purchase of goods and services.
January 1, 2023
The
 
Corporation
 
was
 
not
 
impacted
 
by
the
 
adoption
 
of
 
ASU
 
2022-04
 
since
 
it
does
 
not
 
use
 
supplier
 
finance
programs.
Recently Adopted Accounting Standards Updates
Standard
Description
Date of adoption
Effect on the financial statements
 
FASB ASU 2022-02,
Financial Instruments—
Credit Losses (Topic 326)
Troubled Debt
Restructurings and
Vintage Disclosures
The
 
FASB
 
issued
 
ASU
 
2022-02
 
in
 
March
2022,
 
which
 
eliminates
 
the
 
accounting
guidance
 
for
 
troubled
 
debt
 
restructurings
(“TDRs”) in
 
Subtopic 310-40
 
Receivables—
Troubled
 
Debt
 
Restructurings
 
by
 
Creditors
and
 
requires
 
creditors
 
to
 
apply
 
the
 
loan
refinancing
 
and
 
restructuring
 
guidance
 
to
determine whether
 
a modification
 
results in
a new
 
loan or
 
a continuation
 
of an
 
existing
loan.
 
In
 
addition,
 
the
 
ASU
 
enhances
 
the
disclosure
 
requirements
 
for
 
certain
 
loan
refinancing
 
and
 
restructurings
 
by
 
creditors
when
 
a
 
borrower
 
is
 
experiencing
 
financial
difficulty
 
and
 
enhances
 
the
 
vintage
disclosure
 
by
 
requiring
 
the
 
disclosure
 
of
current-period
 
gross
 
write-offs
 
by
 
year
 
of
origination for financing
 
receivables and net
investments in leases.
 
January 1, 2023
The Corporation adopted
 
ASU 2022-02
during
 
the
 
first
 
quarter
 
of
 
2023.
 
The
adoption
 
of
 
this
 
standard
 
resulted
 
in
enhanced disclosure for
 
loans modified
to
 
borrowers
 
with
 
financial
 
difficulties
and
 
the
 
disclosure
 
of
 
period
 
gross
charge
 
offs
 
by
 
vintage
 
year.
 
The
Corporation
 
anticipates
 
that
 
there
 
will
be loans subject to disclosure under the
new standard that
 
did not qualify
 
under
the prior guidance
 
given the removal
 
of
the
 
concession
 
requirement
 
for
 
such
disclosures.
 
The
 
amended
 
guidance
eliminated the
 
requirement to
 
measure
the effect of the concession from a
 
loan
modification, for
 
which the
 
Corporation
used
 
a
 
discounted
 
cash
 
flow
 
(“DCF”)
model. The
 
impact of
 
discontinuing the
use
 
of
 
the
 
DCF model
 
to
 
measure the
concession resulted
 
in a
 
release of
 
the
allowance
 
for
 
credit
 
losses
 
("ACL")
 
of
$
46
 
million, mainly
 
related to
 
mortgage
loans
 
for
 
which
 
modifications
 
mostly
included
 
a
 
reduction
 
in
 
contractual
interest
 
rates
 
and
 
given
 
the
 
extended
maturity
 
term
 
of
 
these
 
loans,
 
this
resulted
 
in
 
an
 
increase
 
in
 
the
 
ACL
 
in
the
 
period
 
of
 
modification.
 
For
 
the
transition
 
method
 
related
 
to
 
the
recognition and measurement of TDRs,
the
 
Corporation
 
has
 
elected
 
to
 
apply
the modified
 
retrospective approach for
the
 
adoption
 
of
 
this
 
standard.
Accordingly,
 
this
 
presented
 
an
adjustment increase
 
of $
29
 
million, net
of
 
tax
 
effect,
 
to
 
the
 
beginning
 
balance
of
 
retained
 
earnings
 
on
 
January
 
1,
2023.
FASB ASU 2022-01,
Derivatives and Hedging
(Topic 815) – Fair Value
Hedging—Portfolio Layer
Method
The
 
FASB
 
issued
 
ASU
 
2022-01
 
in
 
March
2022,
 
which
 
amends
 
ASC
 
Topic
 
815
 
by
allowing
 
non
 
prepayable
 
financial
 
assets
also
 
to
 
be
 
included
 
in
 
a
 
closed
 
portfolio
hedged
 
using
 
the
 
portfolio
 
layer
 
method.
This
 
amendment permits
 
an entity
 
to
 
apply
fair
 
value
 
hedging to
 
a
 
stated
 
amount
 
of
 
a
closed
 
portfolio
 
of
 
prepayable
 
and
 
non-
prepayable
 
financial
 
assets
 
without
considering
 
prepayment
 
risk
 
or
 
credit
 
risk
when measuring those assets.
January 1, 2023
The
 
Corporation
 
was
 
not
 
impacted
 
by
the
 
adoption
 
of
 
ASU
 
2022-01
 
since
 
it
does not hold derivatives designated as
fair value hedges.
FASB ASU 2021-08,
Business Combinations
(Topic 805) – Accounting
for Contract Assets and
Contract Liabilities from
Contracts with Customers
The FASB
 
issued ASU
 
2021-08 in
 
October
2021,
 
which
 
amends
 
ASC
 
Topic
 
805
 
by
requiring
 
contract
 
assets
 
and
 
contract
liabilities arising
 
from revenue
 
contract with
customers
 
to
 
be
 
recognized
 
in
 
accordance
with ASC
 
Topic
 
606 on
 
the acquisition date
instead of fair value.
January 1, 2023
The
 
Corporation
 
was
 
not
 
impacted
 
by
the adoption of ASU 2021-08, however,
it
 
will
 
consider
 
this
 
guidance
 
for
revenue
 
contracts
 
with
 
customers
recognized
 
as
 
part
 
of
 
business
combinations
 
entered
 
into
 
on
 
or
 
after
the effective date.
Accounting Standards Updates Not Yet Adopted
Standard
Description
Date of adoption
Effect on the financial statements
 
FASB ASU 2023-06,
Disclosure Improvements,
Codification Amendments
in Response to the SEC’s
 
Disclosure Update and
Simplification Initiative
The FASB
 
issued ASU
 
2023-06 in
 
October
2023
 
which
 
modifies
 
the
 
disclosure
 
or
presentation
 
requirements
 
of
 
various
subtopics
 
in
 
the
 
Codification
 
with
 
the
purpose of aligning U.S.
 
GAAP requirement
with those of the SEC under Regulation S-X
and S-K.
 
The date on which
the SEC removes
related disclosure
requirements from
Regulation S-X or
Regulation S-K. If by
June 30, 2027, the
SEC has not
removed the
applicable
requirement from
Regulation S-X or
Regulation S-K, the
pending content of
the related
amendment will be
removed from the
Codification and will
not become
 
effective for any
entity.
The Corporation
 
does not
 
expect to
 
be
impacted
 
by
 
the
 
adoption
 
of
 
this
 
ASU
since
 
it
 
is
 
currently
 
subject
 
to
 
SEC's
current
 
disclosure
 
and
 
presentation
requirements under Regulation S-X and
S-K.
FASB ASU 2023-05,
Business Combinations -
Joint Venture Formations
(Subtopic 805-60)
 
Recognition and initial
measurement
The
 
FASB
 
issued
 
ASU
 
2023-05
 
in
 
August
2023,
 
which
 
amends ASC
 
subtopic
 
805-60
to include specific
 
guidance about how
 
joint
ventures
 
should
 
recognize
 
and
 
initially
measure
 
assets
 
contributed
 
and
 
liabilities
assumed.
 
The
 
amendments
 
require
 
that
 
a
joint venture,
 
upon formation, will
 
recognize
and initially measure its assets and liabilities
at fair value.
January 1, 2025
The Corporation
 
does not
 
expect to
 
be
impacted by the adoption of this ASU.
 
FASB ASU 2023-02,
Investments—Equity
Method and Joint
Ventures (Topic 323) -
Accounting for
Investments in Tax Credit
Structures Using the
Proportional Amortization
Method
The
 
FASB
 
issued
 
ASU
 
2023-02
 
in
 
March
2023,
 
which
 
amend
 
topic
 
ASC
 
323
 
by
permitting
 
the
 
election
 
to
 
apply
 
the
proportional amortization method to account
for
 
tax
 
equity
 
investments
 
that
 
generate
income
 
tax
 
credits
 
through
 
investment
 
in
low-income-housing
 
tax
 
credit
 
(LIHTC)
structures
 
and
 
other
 
tax
 
credit
 
programs
 
if
certain
 
conditions
 
are
 
met.
 
The
 
ASU
 
also
eliminates
 
the
 
application
 
of
 
the
 
subtopic
323-740
 
to
 
LIHTC
 
investment
 
not
accounted
 
for
 
using
 
the
 
proportional
amortization
 
method
 
and
 
instead
 
requires
the use of other guidance.
January 1, 2024
The Corporation
 
is currently
 
evaluating
the
 
impact
 
that
 
the
 
adoption
 
of
 
this
guidance
 
will
 
have
 
on
 
its
 
financial
statements
 
and
 
presentation
 
and
disclosures.