Recent Accounting Pronouncements |
9 Months Ended |
|---|---|
Sep. 30, 2011 | |
| Recent Accounting Pronouncements [Abstract] | |
| RECENT ACCOUNTING PRONOUNCEMENTS |
NOTE 2 — RECENT ACCOUNTING PRONOUNCEMENTS
Changes to U.S. GAAP are established by the Financial Accounting Standards Board (the “FASB”)
in the form of accounting standards updates (“ASU’s”) to the FASB’s Accounting Standards
Codification (“ASC”).
The Company considers the applicability and impact of all ASU’s. ASU’s not listed below were
assessed and determined to not be applicable or are expected to have minimal impact on our
consolidated financial position and results of operations.
Newly Adopted Accounting Standards
In October 2009, the FASB issued an update to existing guidance on accounting for arrangements
with multiple deliverables. This update allows companies to allocate consideration received for
qualified separate deliverables using estimated selling price for both delivered and undelivered
items when vendor-specific objective evidence or third-party evidence is unavailable. Additional
disclosures discussing the nature of multiple element arrangements, the types of deliverables under
the arrangements, the general timing of their delivery and significant factors and estimates used
to determine estimated selling prices is required. This guidance is effective prospectively for
interim and annual periods ending after June 15, 2010. The Company adopted this guidance effective
January 1, 2011. The adoption did not have a material impact on the Company’s consolidated
financial statements.
In December 2010, the FASB issued an update to existing guidance on the calculation of
impairment of goodwill. This update modifies Step 1 of the goodwill impairment test for reporting
units with zero or negative carrying amounts. For these reporting units, an entity is required to
perform Step 2 of the goodwill impairment test if it is more likely than not that a goodwill
impairment exists. The Company adopted this guidance on January 1, 2011, and will evaluate the
impact, if any, on its consolidated financial statements if events occur or circumstances change
that would more likely than not reduce the fair value of the Company or its assets below their
carrying amounts. No events have occurred since June 30, 2011, the Company’s testing date that
would trigger further impairment testing of the Company’s intangible assets with finite lives
subject to amortization.
New Accounting Standards Not Yet Adopted
In September 2011, the FASB issued guidance for the impairment testing of goodwill. The
guidance permits an entity to first assess qualitative factors to determine whether it is
more-likely-than-not that the fair value of a reporting unit is less than its carrying amount as a
basis for determining whether it is necessary to perform the two-step goodwill impairment test.
This guidance is effective for annual and interim goodwill impairment tests performed for fiscal
years beginning after December 15, 2011. Management believes that the adoption will not have a
material impact on the Company’s consolidated financial statements.
In June 2011, the FASB updated the accounting guidance relating to presentation of
comprehensive income. This guidance requires companies to present total comprehensive income, the
components of net income and the components of other comprehensive income (“OCI”) either in a
single continuous statement of comprehensive income or in two, but consecutive, statements.
Additionally, companies are required to present on the face of the consolidated financial
statements the reclassification adjustments that are reclassified from OCI to net income, where the
components of net income and the components of OCI are presented. This guidance is effective
beginning for the year ending December 31, 2012. The adoption of this guidance is not expected to
have a material impact on the Company’s consolidated financial position or results of operations.
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