Application of Recent Accounting Pronouncements

9 Months Ended

Sep. 30, 2013

Application of Recent Accounting Pronouncements

Application of Recent Accounting Pronouncements

3.  Application of Recent Accounting Pronouncements

Recently adopted accounting pronouncements

In December 2011, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) No. 2011-11 Balance Sheet (Topic 210): Disclosures about Offsetting Assets and Liabilities (“ASU No. 2011-11”).  ASU No. 2011-11 provides for entities to disclose information about financial instruments and derivative instruments that are either offset in the balance sheet (presented on a net basis), or subject to an enforceable master netting arrangement or similar arrangement.  ASU No. 2011-11 was effective for fiscal years and interim periods within those years beginning on or after January 1, 2013.  The Company adopted the provisions of ASU No. 2011-11 for its fiscal year beginning January 1, 2013.  The adoption did not have a material impact on the Company’s condensed consolidated financial statements; see additional disclosures required for balance sheet offsetting in Note 8.  ASU No. 2011-11 was subsequently amended by ASU No. 2013-01.

In January 2013, the FASB issued ASU No. 2013-01 Balance Sheet (Topic 210): Clarifying the Scope of Disclosures about Offsetting Assets and Liabilities (“ASU No. 2013-01”). ASU No. 2013-01 clarifies that the scope of ASU No. 2011-11 applies to derivatives, repurchase agreements, reverse repurchase agreements, securities borrowing and securities lending transactions that are either offset or subject to an enforceable master netting arrangement or similar agreement. ASU No. 2013-01 was effective for fiscal years and interim periods within those years beginning on or after January 1, 2013.  The Company adopted the provisions of ASU No. 2013-01 for its fiscal year beginning January 1, 2013.  The adoption did not have a material impact on the Company’s condensed consolidated financial statements; see additional disclosures required for balance sheet offsetting in Note 8.

In February 2013, the FASB issued ASU No. 2013-02 Comprehensive Income (Topic 220): Reporting of Amounts Reclassified Out of Accumulated Other Comprehensive Income (“ASU No. 2013-02”).  ASU No. 2013-02 requires an entity to report the effect of significant reclassifications out of accumulated other comprehensive income for each applicable component of net income on a prospective basis.  ASU No. 2013-02 supersedes the presentation requirements for reclassifications out of accumulated other comprehensive income in ASU No. 2011-05 and ASU No. 2011-12.  ASU No. 2013-02 was effective for fiscal years and interim periods within those years beginning after December 15, 2012.  The Company adopted the provisions of ASU No. 2013-02 for its fiscal year beginning January 1, 2013. The adoption did not have a material impact on the Company’s condensed consolidated financial statements; see additional disclosures required for amounts reclassified out of accumulated other comprehensive income in Note 10.