XML 19 R19.htm IDEA: XBRL DOCUMENT  v2.3.0.11
Note 11 - Recent Accounting Pronouncements.
6 Months Ended
Jun. 30, 2011
Description of New Accounting Pronouncements Not yet Adopted [Text Block]
Note 11.  Recent Accounting Pronouncements.

The following summarizes recent accounting pronouncements and their expected impact on the Company.

In June 2011, the FASB issued Accounting Standards Update No. 2011-05, Presentation of Comprehensive Income.  The objective is to improve the comparability, consistency and transparency of financial reporting and to increase the prominence of items reported in other comprehensive income.  Under the amendments an entity has the option to present the total of comprehensive income, the components of net income, and the components of other comprehensive income either in a single continuous statement of comprehensive income or in two separate but consecutive statements.  The amendments are effective in fiscal years, and interim periods within those years, beginning after December 15, 2011.

In May 2011, the FASB issued Accounting Standards Update No. 2011-04, Amendments to Achieve Common Fair Value Measurement and Disclosure Requirements in U.S. GAAP and IFRSs.  The amendments of this update result in common fair value measurement and disclosure requirements in U.S. GAAP and IFRSs.  The amendments change the wording used to describe many of the requirements in U.S. GAAP for measuring fair value and for disclosing information about fair value measurements.  Some of the amendments clarify the intent about the application of existing fair value measurement requirements, and other amendments change a particular principle or requirement for measuring fair value of for disclosing information about fair value measurements.  The amendments are effective during interim and annual periods beginning after December 15, 2011.

In April 2011, the FASB issued Accounting Standards Update No. 2011-03 for guidance on Transfers and Servicing regarding the reconsideration of effective control for repurchase agreements.  This update improves the accounting for repurchase agreements and other agreements that entitle and obligate a transferor to repurchase or redeem financial assets before their maturity. The amendments in this update apply to all entities, both public and nonpublic, that enter into agreements to transfer financial assets that entitle and obligate the transferor to repurchase or redeem the financial assets before their maturity.  The guidance in this update is effective for the first interim or annual period beginning on or after December 15, 2011. The guidance should be applied prospectively to transactions or modifications of existing transactions that occur on or after the effective date.

In April 2011, the FASB has issued Accounting Standards Update No. 2011-02, A Creditor’s Determination of Whether a Restructuring Is a Troubled Debt Restructuring.   The new standard provides additional guidance on a creditor’s evaluation of when a concession on a loan has been granted and whether a debtor is experiencing financial difficulties.  A creditor must conclude that both of these conditions exist for the loan to be considered a troubled debt restructuring.  This guidance is effective for interim and annual reporting periods beginning after June 15, 2011, and should be applied retrospectively to the beginning of the annual period of adoption.  The Company adopted the update of this standard for the quarter ended June 30, 2011, and the adoption did not have a material impact on the consolidated financial statements.

In December 2010, the FASB issued Accounting Standards Update No. 2010-28 for guidance on Intangibles – Goodwill and Other to modify Step 1 of the goodwill impairment test for reporting units with zero or negative carrying amounts.  When a goodwill impairment test is performed (either on an annual or interim basis), an entity must assess whether the carrying amount of a reporting unit exceeds its fair value (Step 1).  If it does, an entity must perform an additional test to determine whether goodwill has been impaired and to calculate the amount of that impairment (Step 2). For those reporting units, an entity is required to perform Step 2 if it is more likely than not that a goodwill impairment exists and to consider whether there are any adverse qualitative factors indicating an impairment may exist.  The amendments in this update are effective for fiscal years, and interim periods within those years, beginning after December 15, 2010 and is not expected to impact the Company’s next goodwill impairment test.

In July 2010, the FASB issued Accounting Standards Update No. 2010-20, Disclosures about the Credit Quality of Financing Receivables and the Allowance for Credit Losses.  This standard requires additional disclosures related to the allowance for loan losses with the objective of providing financial statement users with greater transparency about an entity’s loan loss reserves and overall credit quality, disaggregated by portfolio segment and class of financing receivable.  Additional disclosures include showing on a disaggregated basis the aging of receivables, credit quality indicators, and troubled debt restructurings with their effect on the allowance for loan loss.  The provisions of this standard are effective for interim and annual periods ending on or after December 15, 2010.  The Company has adopted this standard through additional disclosures in the footnotes to the consolidated financial statements and it did not have a material impact on the Company’s financial position or results of operation.

Other accounting standards that have been issued or proposed by the FASB or other standards-setting bodies are not expected to have a material impact on the Company’s financial position, results of operations or cash flows.

From time to time the FASB issues exposure drafts for proposed statements of financial accounting standards.  Such exposure drafts are subject to comment from the public, to revisions by the FASB and to final issuance by the FASB as statements of financial accounting standards.  Management considers the effect of the proposed statements and SEC Staff Accounting Bulletins on the consolidated financial statements of the Company and monitors the status of changes to and proposed effective dates of exposure drafts.