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NOTE C - NEW ACCOUNTING PRONOUNCEMENTS
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6 Months Ended |
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Jun. 30, 2011
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| New Accounting Pronouncements, Policy [Policy Text Block] |
NOTE
C – NEW ACCOUNTING PRONOUNCEMENTS
In
May 2011, the Financial Accounting Standards Board
(FASB) issued FASB ASU No. 2011-04, “Amendments to
Achieve Common Fair Value Measurement and Disclosure
Requirements in U.S. GAAP and IFRSs,” which is now
codified under FASB ASC Topic 820, “Fair Value
Measurement.” This new guidance provides common
requirements for measuring fair value and for disclosing
information about fair value measurements in accordance with
U.S. generally accepted accounting principles
(“GAAP”) and International Financial Reporting
Standards (“IFRSs”). Certain fair value
measurement principles were clarified or amended in this ASU,
such as the application of the highest and best use and
valuation premise concepts. New and revised disclosure
requirements include: quantitative information about
significant unobservable inputs used for all Level 3 fair
value measurements and a description of the valuation
processes in place, as well as a qualitative discussion about
the sensitivity of recurring Level 3 fair value measurements;
public companies will need to disclose any transfers between
Level 1 and Level 2 fair value measurements on a gross basis,
including the reason(s) for those transfers; a
requirement regarding disclosure on the highest and best use
of a nonfinancial asset; and a requirement that all fair
value measurements be categorized in the fair value hierarchy
with disclosure of that categorization. FASB ASU
No. 2011-04 will be effective on a prospective basis for
public companies during interim and annual periods beginning
after December 15, 2011. Early adoption by public
companies is not permitted. We do not expect the
adoption of this ASU to have an impact on our consolidated
statements.
In
September 2011, the FASB issued FASB ASU
No. 2011-08, “Testing Goodwill for
Impairment,” which is now codified under FASB ASC Topic
350, “Intangibles — Goodwill and
Other.” This new guidance allows an entity to
first assess qualitative factors to evaluate if the existence
of events or circumstances leads to a determination it is
necessary to perform the current two-step test. After
assessing the totality of events or circumstances, if it is
determined it is not more likely than not that the fair value
of a reporting unit is less than its carrying amount, then
performing the two-step impairment test is unnecessary.
Otherwise, the entity is required to perform Step 1 of the
impairment test. An entity has the option to bypass the
qualitative assessment for any reporting unit in any period
and proceed directly to Step 1 of the two-step impairment
test, and then resume performing the qualitative assessment
in any subsequent period. Reporting units with zero or
negative carrying amounts continue to be required to perform
a qualitative assessment in place of Step 1 of the impairment
test. The new guidance includes examples of events and
circumstances an entity should consider in its evaluation of
whether it is more likely than not that the fair value of a
reporting unit is less than its carrying amount, such as
macroeconomic conditions; industry and market considerations;
cost factors; overall financial performance; and other
relevant entity-specific events. The examples of events
and circumstances included in this ASU supersede the previous
examples entities should have considered. FASB ASU
No. 2011-08 is effective for annual and interim goodwill
impairment tests performed for fiscal years beginning after
December 15, 2011. We do not expect the adoption of
this ASU to have an impact on our consolidated
statements.
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