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efforts are taken and there is insufficient information to
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entity.&lt;/font&gt;&lt;/p&gt;
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&lt;p style="MARGIN-TOP: 6px; MARGIN-BOTTOM: 0px"&gt;&lt;font style="FONT-FAMILY: Times New Roman" size="2"&gt;The FASB issued new
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&lt;p style="MARGIN-TOP: 18px; MARGIN-BOTTOM: 0px"&gt;&lt;font style="FONT-FAMILY: Times New Roman" size="2"&gt;&lt;b&gt;Subsequent Events (ASC
855)&lt;/b&gt;&lt;/font&gt;&lt;/p&gt;
&lt;p style="MARGIN-TOP: 6px; MARGIN-BOTTOM: 0px"&gt;&lt;font style="FONT-FAMILY: Times New Roman" size="2"&gt;The FASB issued new
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Reference 2: http://www.xbrl.org/2003/role/presentationRef
 -Publisher AICPA
 -Name Accounting Principles Board Opinion (APB)
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Reference 3: http://www.xbrl.org/2003/role/presentationRef
 -Publisher SEC
 -Name Regulation S-X (SX)
 -Number 210
 -Section 01
 -Paragraph b
 -Subparagraph 6
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&lt;p style="MARGIN-TOP: 6px; MARGIN-BOTTOM: 0px; MARGIN-RIGHT: 2%"&gt;
&lt;font style="FONT-FAMILY: Times New Roman" size="2"&gt;The FASB issued
new consolidation guidance regarding variable interest entities
effective January&amp;#xA0;1, 2010 that eliminated the quantitative
analysis requirement and added new qualitative factors to determine
whether consolidation is required. The new qualitative factors are
applied on a quarterly basis to interests in variable interest
entities. Under the new guidance, the holder of the interest with
the power to direct the most significant activities of the entity
and the right to receive benefits or absorb losses significant to
the entity would consolidate. The new guidance retained the
provision that allows entities created before December&amp;#xA0;31,
2003 to be scoped out from a consolidation assessment if exhaustive
efforts are taken and there is insufficient information to
determine whether there is a relationship with a variable interest
entity or the primary beneficiary of a variable interest entity.
ACE has adopted the provisions of the new FASB guidance on
consolidation of variable interest entities, and it did not have a
material impact on its overall financial condition, results of
operations, or cash flows.&lt;/font&gt;&lt;/p&gt;
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&lt;p style="MARGIN-TOP: 6px; MARGIN-BOTTOM: 0px"&gt;&lt;font style="FONT-FAMILY: Times New Roman" size="2"&gt;The FASB issued new
disclosure requirements for recurring and non-recurring fair value
measurements. The guidance, effective beginning with ACE&amp;#x2019;s
March&amp;#xA0;31, 2010 financial statements, requires the
disaggregation of balance sheet items measured at fair value into
subsets of balance sheet items based on the nature and risks of the
items. The standard requires descriptions of pricing inputs and
valuation methodologies for instruments with Level 2 or 3 valuation
inputs. In addition, the standard requires information about any
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categories. These additional disclosures can be found in Note (9),
&amp;#x201C;Fair Value Disclosures.&amp;#x201D;&lt;/font&gt;&lt;/p&gt;
&lt;p style="MARGIN-TOP: 18px; MARGIN-BOTTOM: 0px"&gt;&lt;font style="FONT-FAMILY: Times New Roman" size="2"&gt;&lt;b&gt;Subsequent Events (ASC
855)&lt;/b&gt;&lt;/font&gt;&lt;/p&gt;
&lt;p style="MARGIN-TOP: 6px; MARGIN-BOTTOM: 0px"&gt;&lt;font style="FONT-FAMILY: Times New Roman" size="2"&gt;The FASB issued new
guidance which eliminated the requirement for ACE to disclose the
date through which it has evaluated subsequent events beginning
with its March&amp;#xA0;31, 2010 financial statements.&lt;/font&gt;&lt;/p&gt;
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