NOTES TO THE UNAUDITED INTERIM CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
In June 2016, the FASB issued ASU No. 2016-13
(ASU 2016-13), Financial InstrumentsCredit Losses (Topic 326), Measurement of Credit Losses on Financial Instruments. ASU 2016-13 changes the
impairment model for most financial assets and certain other instruments. The standard will replace incurred loss approach with an expected loss model for instruments measured at amortized cost. For available-for-sale debt securities, entities will be required to record allowances rather than reduce the carrying amount, as they do today under the other-than-temporary
impairment model. The standard is effective for public business entities for annual periods beginning after December 15, 2019, and interim periods therein. Early adoption is permitted. The Company is currently evaluating the impact of adopting
this standard on its consolidated financial statements
In November 2016, the FASB issued Accounting Standards Update No. 2016-18 (ASU 2016-18), Statement of Cash Flows (Topic 230): Restricted Cash. ASU 2016-18 requires companies
to include amounts generally described as restricted cash and restricted cash equivalents in cash and cash equivalents when reconciling beginning-of-period and end-of-period total amounts shown on the statement of cash flows. This standard is effective for public business entities in the first quarter of 2018. Early adoption is
permitted. The Company is currently evaluating the effect that this guidance will have on our consolidated financial statements and related disclosures.
In January 2017, the FASB issued Accounting Standards Update No. 2017-04 (ASU 2017-04), IntangiblesGoodwill and Other (Topic 350): Simplifying the Test for Goodwill Impairment. ASU 2017-04 eliminates the requirement to calculate the
implied fair value of goodwill to measure a goodwill impairment charge. Instead, entities will record an impairment charge based on the excess of a reporting units carrying amount over its fair value. This standard is effective for public
business entities in the first quarter of 2020. Early adoption is permitted. The Company is currently evaluating the effect that this guidance will have on our consolidated financial statements and related disclosures.
As of March 31, 2017, all of the short-term
held-to-maturity investments were time deposits in commercial banks with maturities of less than one year. The short-term available-for-sale investments are debt securities with maturities of less than one year purchased from commercial banks and other financial institutions, and equity securities of a publicly listed company.
During the three-month periods ended March 31, 2016 and 2017, the Company recorded interest income from its short-term investments of
RMB559.70 million and RMB632.20 million (US$91.85 million) in earnings, respectively.
Other invested securities
As of March 31, 2017, all other invested securities are trading securities bought for Baidu Wealth Management business, which
are held principally for the purpose of selling them in the near term.
The carrying amounts of the Companys cost method investments were RMB12.94 billion and RMB13.02 billion (US$1.89 billion) as of
December 31, 2016 and March 31, 2017, respectively. The carrying amounts of the Companys equity method investments were RMB32.26 billion and RMB32.05 billion (US$4.66 billion) as of December 31, 2016 and March 31,