Accounting Pronouncement

9 Months Ended

Sep. 30, 2011

New Accounting Pronouncements and Changes in Accounting Principles [Abstract]

New Accounting Pronouncements and Changes in Accounting Principles [Text Block]

Accounting Pronouncement

In September 2011, the Financial Accounting Standards Board issued "Intangibles - Goodwill and Other: Testing Goodwill for Impairment" which amends previous guidance in this area. The new standard provides an entity the option of first assessing qualitative factors (events and circumstances) to determine whether it is necessary to perform the current two-step impairment test. If an entity determines, as a result of its qualitative assessment, that it is more likely than not that the fair value of a reporting unit is less than its carrying amount, the quantitative impairment test is required. Otherwise, no further testing is required. An entity can choose to perform the qualitative assessment on none, some or all of its reporting units. Under the new standard, an entity can bypass the qualitative assessment for any reporting unit in any period and proceed directly to performing the first step of the two-step impairment test, and then resume performing the qualitative assessment in any subsequent period. The new standard also will expand upon the examples of events and circumstances that an entity should consider between annual impairment tests in determining whether it is more likely than not that the fair value of a reporting unit is less than its carrying amount. The new standard is applicable to all entities that have goodwill reported in their financial statements. The new standard is effective for interim and annual reporting period goodwill impairment tests performed for fiscal years beginning after December 15, 2011. The Company plans to adopt this new standard effective January 1, 2012. The Company expects to record a significant amount of goodwill as part of the gas gathering acquisitions discussed in Note 17.