Summary of Significant Accounting Policies

9 Months Ended

Sep. 30, 2011

Summary of Significant Accounting Policies [Abstract]

Summary of Significant Accounting Policies

2. Summary of Significant Accounting Policies

The accompanying unaudited condensed consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the United States (“U.S.”) for interim financial information and with the instructions to Form 10-Q and Rule 10-01 of Regulation S-X. In the opinion of the Company’s management, all material adjustments (consisting of normal recurring accruals) considered necessary for a fair presentation have been included. They do not include all information and notes required by generally accepted accounting principles for complete financial statements. However, except as disclosed herein, there has been no material change in the information disclosed in the notes to the consolidated financial statements included in the Annual Report on Form 10-K for the year ended December 31, 2010.

The Company’s significant accounting policies have not changed since December 31, 2010, except as outlined below:

Recent Accounting Pronouncements.

In June 2011, the Financial Accounting Standards Board (“FASB”) amended the guidance for reporting other comprehensive income. Under this amendment, the Company 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. Additionally, the Company will be required to display reclassification adjustments on the face of the financial statements in which other comprehensive income is reported or disclosed in the notes to the financial statements. This amendment should be applied retrospectively and is effective for fiscal years, and interim periods within those years, beginning after December 15, 2011. Early adoption is permitted. This amendment is effective for the Company beginning January 1, 2012. The adoption of this amendment is not expected to have a material impact on the Company’s consolidated financial position or results of operations.

In May 2011, the FASB amended the guidance for reporting fair value measurements and disclosure requirements. The amendments in this update change the wording used to describe the requirements in U.S. Generally Accepted Accounting Principles (“GAAP”) for measuring fair value and for disclosing information about fair value measurements. This amendment should be applied prospectively and is effective during interim and annual periods beginning after December 15, 2011. Early application is not permitted. The amendment is effective for the Company beginning January 1, 2012. The adoption of this amendment is not expected to have a material impact on the Company’s consolidated financial position or results of operations.

In April 2010, the FASB amended the guidance for applying the milestone method of revenue recognition to research or development arrangements. Under this guidance, the Company may recognize revenue contingent upon the achievement of a milestone in its entirety in the period in which the milestone is achieved, only if the milestone meets all the criteria within the guidance to be considered substantive. This amendment was effective on a prospective basis for research and development milestones achieved in fiscal years, and interim periods within those years, beginning on or after June 15, 2010. Early adoption was permitted. This amendment was effective for the Company beginning January 1, 2011. The adoption of this amendment did not have a material impact on the Company’s consolidated financial position or results of operations.

In October 2009, the FASB amended the guidance for revenue recognition in multiple-element arrangements. The guidance requires an entity to provide updated guidance on whether multiple deliverables exist, how the deliverables in an arrangement should be separated, and how the consideration should be allocated and; then allocate revenue in an arrangement using estimated selling prices of deliverables if a vendor does not have vendor-specific objective evidence (“VSOE”) or third-party evidence of selling price. The guidance also eliminates the use of the residual method and requires an entity to allocate revenue using the relative selling price method. This amendment was effective for the Company beginning January 1, 2011. The adoption of this amendment did not have a material impact on the Company’s consolidated financial position or results of operations.