CHFC 2018 Annual Report

Standard Description Adoption Date Effect on the financial statements ASU No. 2018-15 - Intangible- Goodwill and h l Ot er-Interna - Use Software ( b i Su top c ) 350-40 : Customer's Accounting for l i Imp ementat on Costs Incurred in a Cloud Computing Arrangement hT at Is a i Serv ce ( Contract "ASU ) 2018-15" ASU 2018-15 clarifies the accounting treatment for implementation costs for hosting arrangements that are service contracts. The amendments in this update align the requirements for capitalizing implementation costs incurred in a hosting arrangement that is a service contract with the requirements for capitalizing implementation costs incurred to develop or obtain internal use software in accordance with subtopic 350-40. Under this guidance costs for implementation activities during the development stage shall be capitalized. The said capitalized-costs shall be expensed over the term of the hosting arrangement. Third quarter of 2018 applied retrospectively The early adoption in the third quarter did not have a material effect on the Consolidated Financial Statements. Chemical Financial Corporation Notes to Consolidated Financial Statements December 31, 2018 102