|ASU 2023-02 Investments - Equity Method and Joint Ventures (Topic 323): Accounting for Investments in Tax Credit Structures Using the Proportional Amortization Method Issued: March 2023
•Permits the election of the proportional amortization method for any tax equity investment that meets specific criteria.
•Requires that the election be made on a tax-credit-program-by-tax-credit-program basis.
•Receipt of tax credits must be accounted for using the flow through method.
•Required that a liability be recorded for delayed equity contributions.
•Expands disclosure requirements for the nature of investments and financial statement effect.
•Effective for fiscal years beginning after December 15, 2023, including interim periods within those fiscal years.
•Early adoption is permitted in any interim period.
•If adopted in an interim period, it shall be adopted as if adopted at the beginning of the fiscal year.
•The amendments can be applied in retrospective or modified retrospective basis, with a cumulative effect adjustment reflected in retained earnings.
•Huntington does not expect adoption of the standard to have a material impact on its Unaudited Consolidated Financial Statements.