2.2.0.7 false Accounting Policies 0201 - Disclosure - Accounting Policies true false false false 1 false false 2 Accounting Policies [Abstract] 0 us-gaap_GeneralPoliciesAbstract us-gaap true na duration No definition available. false false false false false true false false false false false false 1 false false false false 0 0 false false false xbrli:stringItemType string No definition available. false 3 Accounting Policies 1 us-gaap_OrganizationConsolidationAndPresentationOfFinancialStatementsDisclosureTextBlock us-gaap true na duration No definition available. false false false false false false false false false false false verboselabel false 1 false false false false 0 0   <div align="left" style="font-family: Helvetica,Arial,sans-serif">   <div align="center" style="font-size: 10pt; margin-top: 0pt"><b> </b> </div> <div align="left"> </div> <div align="center" style="font-size: 10pt"><i></i></div> <div align="left" style="font-size: 10pt; margin-top: 12pt"><b>NOTE 1. ACCOUNTING POLICIES</b> </div> <div align="center" style="font-size: 10pt"> <div style="width: 100%; border-bottom: 1px solid #000000; font-size: 1px">  </div> </div> <div align="left" style="font-size: 10pt; margin-top: 6pt">     <b><i>Basis of Presentation</i></b> </div> <div align="left" style="font-size: 10pt; margin-top: 6pt">     WGL Holdings, Inc. (WGL Holdings) is a holding company that owns all of the shares of common stock of Washington Gas Light Company (Washington Gas), a regulated natural gas utility, and all of the shares of common stock of Washington Gas Resources Corporation (Washington Gas Resources), Hampshire Gas Company (Hampshire) and Crab Run Gas Company. Washington Gas Resources owns all of the shares of common stock of three unregulated subsidiaries that include Washington Gas Energy Services, Inc. (WGEServices), Washington Gas Energy Systems, Inc. (WGESystems) and Capitol Energy Ventures Corp. (CEV), formerly known as Washington Gas Credit Corporation. Except where the content clearly indicates otherwise, “WGL Holdings,” “we,” “us” or “our” refers to the holding company or the consolidated entity of WGL Holdings and all of its subsidiaries. Unless otherwise noted, these notes apply equally to WGL Holdings and Washington Gas. </div> <div align="left" style="font-size: 10pt; margin-top: 6pt">     The interim consolidated financial statements have been prepared pursuant to the rules and regulations of the Securities and Exchange Commission (SEC). Therefore, certain financial information and note disclosures accompanying annual financial statements prepared in accordance with generally accepted accounting principles in the United States of America (GAAP) are omitted in this interim report pursuant to the SEC rules and regulations. The interim consolidated financial statements and accompanying notes should be read in conjunction with the combined Annual Report on Form 10-K for WGL Holdings and Washington Gas for the fiscal year ended September 30, 2009. Due to the seasonal nature of Washington Gas’s and WGEServices’ businesses, the results of operations for the periods presented in this report are not necessarily indicative of actual results for the full fiscal years ending September 30, 2010 and 2009 of either WGL Holdings or Washington Gas. </div> <div align="left" style="font-size: 10pt; margin-top: 6pt">     The accompanying unaudited consolidated financial statements for WGL Holdings and Washington Gas reflect all normal recurring adjustments that are necessary, in our opinion, to present fairly the results of operations in accordance with GAAP. </div> <div align="left" style="font-size: 10pt; margin-top: 6pt">     For a description of our accounting policies, refer to Note 1 of the Notes to Consolidated Financial Statements of the combined Annual Report on Form 10-K for WGL Holdings and Washington Gas for the fiscal year ended September 30, 2009. See <i>“Accounting Standards Adopted in the Current Period” </i>below for changes to these policies subsequent to September 30, 2009. </div> <div align="left" style="font-size: 10pt; margin-top: 10pt">     <b><i>Accounting Standards Adopted in the Current Year</i></b> </div> <div align="left" style="font-size: 10pt; margin-top: 6pt">     <b><i>Fair Value. </i></b>In August 2009, the Financial Accounting Standards Board (FASB) issued Accounting Standards Update (ASU) 2009-05, <i>Fair Value Measurements and Disclosures—Measuring Liabilities at Fair Value </i>(ASU 2009-05). This ASU provides amendments to Accounting Standards Codification (ASC) Subtopic 820-10, <i>Fair Value Measurements and Disclosures—Overall</i>, for the fair value measurement of liabilities. ASU 2009-05 provides clarification that in circumstances in which a quoted price in an active market for the identical liability is not available, a reporting entity is required to measure fair value using; <i>(i) </i>a valuation technique that uses the quoted price of the identical liability when traded as an asset, or quoted prices for similar liabilities or similar liabilities when traded as assets or <i>(ii) </i>another valuation technique that is consistent with the principles of Topic 820. ASU 2009-05 was effective for us on October 1, 2009. The adoption of this guidance did not have a material effect on our consolidated financial statements. </div> <div align="left" style="font-size: 10pt; margin-top: 6pt">     <b><i>Noncontrolling Interests</i></b>. Effective October 1, 2009, we adopted revised guidance under ASC Topic 810 relating to, noncontrolling interests in consolidated financial statements. This guidance establishes accounting and reporting standards for the noncontrolling interest in a subsidiary and for the deconsolidation of a subsidiary. The adoption of this standard resulted in reclassifying Washington Gas’s preferred stock dividends on the Statement of Income to present consolidated net income attributable to both the shareholders of WGL Holdings Inc. and to the noncontrolling interest of Washington Gas’s preferred shareholders as net income. In addition, the Statements of Cash Flows were changed to include income from all equity holders as a source of cash in Operating Activities and to reflect the distribution of preferred stock dividends as a use of cash in Financing Activities. The adoption of this standard had no other effect on our consolidated financial statements. </div> <div align="left" style="font-size: 10pt; margin-top: 6pt">     <b><i>Subsequent Events. </i></b>In February 2010, the FASB issued ASU 2010-09, <i>Subsequent Events—Amendments to Certain Recognition and Disclosure Requirements </i>(ASU 2010-09). This ASU provides amendments to Subtopic 855-10, <i>Subsequent Events—Overall</i>, which establishes general standards of accounting for and disclosure of events that occur after the balance sheet date but before financial statements are issued or are available to be issued. Subtopic 855-10 does not apply to the accounting for and disclosure of subsequent events addressed in other generally accepted accounting principles. ASU 2010-09 eliminates the requirement to disclose the date through which a registered company has evaluated subsequent events. Effective March 31, 2010, we adopted ASU 2010-09 for disclosures of events or transactions not within the scope of other applicable GAAP. </div> <div align="left" style="font-size: 10pt; margin-top: 6pt">     <b><i>Other Newly Issued Accounting Standards</i></b> </div> <div align="left" style="font-size: 10pt; margin-top: 6pt">     <b><i>Postretirement Benefits. </i></b>In December 2008, the FASB issued FSP FAS 132(R)-1, <i>Employers’ Disclosures about Postretirement Benefit Plan Assets </i>(FSP FAS 132(R)-1), now part of ASC Topic 715-20-65. FSP FAS 132(R)-1 contains amendments to ASC Topic 715 that are intended to improve disclosures of postretirement benefit plan assets. This ASU requires; <i>(i) </i>increased disclosure on how investment allocation decisions are made, including the factors that are pertinent to an understanding of investment policies and strategies; <i>(ii) </i>the major categories of plan assets; <i>(iii) </i>the inputs and valuation techniques used to measure the fair value of plan assets; <i>(iv) </i>the effect of fair value measurements using significant unobservable inputs on changes in plan assets for the period and <i>(v) </i>significant concentrations of risk within plan assets. FSP FAS 132(R)-1 is effective for us on September 30, 2010. We are currently evaluating the possible effect of this standard on our consolidated financial statements. </div> <div align="left" style="font-size: 10pt; margin-top: 6pt">     <b><i>Fair Value. </i></b>In January 2010, the FASB issued ASU 2010-06, <i>Improving Disclosures about Fair Value Measurements. </i>ASU 2010-06 amends ASC Topic 820 to require the following additional disclosures regarding fair value measurements: <i>(i) </i>the amounts of transfers between Level 1 and Level 2 of the fair value hierarchy; <i>(ii) </i>reasons for any transfers in or out of Level 3 of the fair value hierarchy and <i>(iii) </i>the inclusion of information about purchases, sales, issuances and settlements in the reconciliation of recurring Level 3 measurements. ASU 2010-06 also amends ASC Topic 820 to clarify existing disclosure requirements, requiring fair value disclosures by class of assets and liabilities rather than by major category and the disclosure of valuation techniques and inputs used to determine the fair value of Level 2 and Level 3 assets and liabilities. With the exception of disclosures relating to purchases, sales issuances and settlements of recurring Level 3 measurements, ASU 2010-06 was effective for us on January 1, 2010. Refer to Note 11 – <i>Fair Value Measurements </i>for the required disclosure under this standard. The disclosure requirements related to purchases, sales, issuances and settlements of recurring Level 3 measurements will be effective for us on October 1, 2011. We are currently evaluating the possible effect of this standard on our consolidated financial statements. </div> <div align="left" style="font-size: 10pt; margin-top: 6pt">     <b><i>Receivables. </i></b>In July 2010, the FASB issued ASU 2010-20, <i>Disclosures about the Credit Quality of Financing Receivables and the Allowance for Credit Losses </i>(ASU 2010-20). ASU 2010-20 requires companies to provide more information in their disclosures about the credit quality of their financing receivables such as aging information and credit quality indicators, and the credit reserves held against them. Both new and existing disclosures must be disaggregated by portfolio segment or class. The disaggregation of information is based on how a company develops its allowance for credit losses and how it manages its credit exposure. ASU 2010-20 is effective for us on January 1, 2011. We are currently evaluating the possible effect of this standard on our consolidated financial statements. </div>   </div>  <div style="font-family: Helvetica,Arial,sans-serif"> <div align="center" style="font-size: 10pt; margin-top: 0pt"> <b> </b> <i> </i> </div> </div>  <!-- Begin Block Tagged Note false false false us-types:textBlockItemType textblock Description containing the entire organization, consolidation and basis of presentation of financial statements disclosure. 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