Accounting Pronouncements

6 Months Ended

Jun. 30, 2011

Accounting Pronouncements [Abstract]

Accounting Pronouncements

Note G  Accounting Pronouncements

In April 2011, the FASB issued additional guidance to improve financial reporting by creating greater consistency in the way GAAP is applied for various types of debt restructurings.  The guidance clarifies which loan modifications constitute troubled debt restructurings.  It is intended to assist creditors in determining whether a modification of the terms of a receivable meets the criteria to be considered a troubled debt restructuring, both for purposes of recording an impairment loss and for disclosure of troubled debt restructurings.  In evaluating whether a restructuring constitutes a troubled debt restructuring, a creditor must separately conclude that both of the following exist:  (a) the restructuring constitutes a concession; and (b) the debtor is experiencing financial difficulties.  The amendments clarify the guidance on a creditor’s evaluation of whether it has granted a concession and whether a debtor is experiencing financial difficulties.  The new guidance is effective for interim and annual periods beginning on or after June 15, 2011 and applies retrospectively to restructurings occurring on or after the beginning of the fiscal year of adoption.  The disclosures and guidance will be required to be included with the Company’s September 30, 2011 interim financial statement.  The Company does not feel that the adoption of this guidance will have a material impact on the Company’s financial position or results of operations.

In May 2011, the FASB issued amended fair value measurement and discourse requirements.  This guidance represents converged guidance of the FASB and IASB (the Boards) on fair value measurement.  The collective efforts of the Boards and their staffs have resulted in common requirements for measuring fair value and for disclosing information about fair value measurements, including a consistent meaning of the term “fair value.”  The Boards have concluded the common

requirements will result in greater comparability of fair value measurements presented and disclosed in financial statements prepared in accordance with U.S. GAAP and IFRSs.  The amendments are to be applied prospectively.   The amendments are effective during interim and annual periods beginning after December 15, 2011.  The Company does not feel that the adoption of this guidance will have a material impact on the Company’s financial position or results of operations.

In June 2011, the FASB issued guidance on the presentation of comprehensive income.  The guidance amends the FASB Accounting Standards Codification (Codification) to allow an entity 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.  In both choices, an entity is required to present each component of net income along with total net income, each component of other comprehensive income along with a total for other comprehensive income, and a total amount for comprehensive income.  This guidance eliminates the option to present the components of other comprehensive income as part of the statement of changes in stockholders’ equity.  The amendments to the Codification in the ASU do not change the items that must be reporting in other comprehensive income or when an item of other comprehensive income must be reclassified to net income.  This guidance should be applied retrospectively.  The amendments are effective for fiscal years, and interim periods within those years, beginning after December 15, 2011.  The Company does not feel that the adoption of this guidance will have a material impact on the Company’s financial position or results of operations.