JPMorgan Chase & Co./2018 Form 10-K 144 Financial Accounting Standards Board (“FASB”) Standards Adopted during 2018 ACCOUNTING AND REPORTING DEVELOPMENTS Management’s discussion and analysis Standard Summary of guidance Effects on financial statements Revenue recognition – revenue from contracts with customers Issued May 2014 • Requires that revenue from contracts with customers be recognized upon transfer of control of a good or service in the amount of consideration expected to be received. • Changes the accounting for certain contract costs, including whether they may be offset against revenue in the Consolidated statements of income, and requires additional disclosures about revenue and contract costs. • Adopted January 1, 2018. • For further information, refer to Note 1. Recognition and measurement of financial assets and financial liabilities Issued January 2016 • Requires that certain equity instruments be measured at fair value, with changes in fair value recognized in earnings. • Provides a measurement alternative for equity securities without readily determinable fair values to be measured at cost less impairment (if any), plus or minus observable price changes from an identical or similar investment of the same issuer. Any such price changes are reflected in earnings beginning in the period of adoption. • Adopted January 1, 2018. • For further information, refer to Note 1. Classification of certain cash receipts and cash payments in the statement of cash flows Issued August 2016 • Provides targeted amendments to the classification of certain cash flows, including the treatment of settlement payments for zero coupon debt instruments and distributions received from equity method investments. • Adopted January 1, 2018. • The adoption of the guidance had no material impact as the Firm was either in compliance with the amendments or the amounts to which it was applied were immaterial. Treatment of restricted cash on the statement of cash flows Issued November 2016 • Requires restricted cash to be combined with unrestricted cash when reconciling the beginning and ending cash balances on the Consolidated statements of cash flows. • Requires additional disclosures to supplement the Consolidated statements of cash flows. • Adopted January 1, 2018 • For further information, refer to Note 1.