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New Accounting Guidance Pending Adoption
12 Months Ended
Dec. 31, 2012
New Accounting Guidance Pending Adoption [Abstract]  
New Accounting Guidance Pending Adoption

24. New Accounting Guidance Pending Adoption

 

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

 

Improving Disclosures about Offsetting Balance Sheet Items

 

Effective January 1, 2013, the Registrants will retrospectively adopt accounting guidance issued to enhance disclosures about derivative instruments that either (1) offset on the balance sheet or (2) are subject to an enforceable master netting arrangement or similar agreement, irrespective of whether they are offset on the balance sheet.

 

Upon adoption, the enhanced disclosure requirements are not expected to have a significant impact on the Registrants.

 

Testing Indefinite-Lived Intangible Assets for Impairment

 

Effective January 1, 2013, the Registrants will prospectively adopt accounting guidance that allows an entity to elect the option to first make a qualitative evaluation about the likelihood of an impairment of an indefinite-lived intangible asset. If, based on this assessment, the entity determines that it is more likely than not that the fair value of the indefinite-lived intangible asset exceeds the carrying amount, the fair value of that asset does not need to be calculated. If the entity concludes otherwise, a quantitative impairment test must be performed by determining the fair value of the asset and comparing it with the carrying value. The entity would record an impairment charge, if necessary.

 

Upon adoption, the guidance is not expected to have a significant impact on the Registrants.

 

Reporting Amounts Reclassified Out of AOCI

 

Effective January 1, 2013, the Registrants will prospectively adopt accounting guidance issued to improve the reporting of reclassifications out of AOCI. The Registrants will be required to provide information about the effects on net income of significant amounts reclassified out of AOCI by their respective statement of income line item, if the item is required to be reclassified to net income in its entirety. For items not reclassified to net income in their entirety, the Registrants will be required to reference other disclosures that provide details on these amounts.

 

Upon adoption, the enhanced disclosure requirements are not expected to have a significant impact on the Registrants.