13. FINANCIAL ACCOUNTING STANDARDS

9 Months Ended

Sep. 30, 2011

New Accounting Pronouncement or Change in Accounting Principle, Description

13. FINANCIAL ACCOUNTING STANDARDS

Creditor’s Determination of Whether a Restructuring is a Troubled Debt Restructuring

In January 2011, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) 2011-01, Receivables (Topic 310): Deferral of the Effective Date of Disclosures about Troubled Debt Restructurings (“TDR”) in Update No. 2010-20. ASU 2011-01 approved the deferral of certain disclosure requirements surrounding TDRs included in ASU 2010-20, which were scheduled to be effective on January 1, 2011. The disclosure requirements were delayed until the FASB finalized the standards update related to their exposure draft, Clarifications to Accounting for Troubled Debt Restructurings by Creditors. In April 2011, the FASB issued ASU 2011-02, Receivables (Topic 310): A Creditor’s Determination of Whether a Restructuring is a Troubled Debt Restructuring. ASU 2011-02 provides additional guidance to creditors for evaluating whether a modification or restructuring of a receivable is a TDR. The new guidance requires creditors to evaluate modifications and restructurings of receivables using a more principles-based approach, which may result in more modifications and restructurings being considered a TDR. The amendments and the disclosures which were deferred by ASU 2011-01 are effective for the Company for the quarter ended September 30, 2011. The adoption of this guidance did not have an impact on the Company’s financial position, results of operation or cash flows. See Footnote 8 for the required disclosures.