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Effect of Recently Issued Accounting Standards
6 Months Ended
Jun. 30, 2011
Effect of Recently Issued Accounting Standards [Abstract]  
Effect of Recently Issued Accounting Standards
Note 17 ¾ Effect of Recently Issued Accounting Standards
In May 2011, the FASB issued FASB ASU No. 2011-04, “Amendments to Achieve Common Fair Value Measurement and Disclosure Requirements in U.S. GAAP and IFRSs,” which is now codified under FASB ASC Topic 820, “Fair Value Measurement.” This amendment provides common requirements for measuring fair value and for disclosing information about fair value measurements in accordance with U.S. generally accepted accounting principles (“GAAP”) and International Financial Reporting Standards (“IFRSs”). Currently, the U.S. GAAP valuation premise incorporates two approaches for determining the highest and best use of an asset: in-use and in-exchange. These terms will be eliminated and instead a description of the objectives of the valuation premise will be used. The ASU also clarifies that the principal market is the market with the greatest volume and level of activity for the asset or liability (in existing U.S. GAAP, the principal market is the market where the reporting entity transacts with the greatest volume and level of activity for the asset or liability), as well as clarifying the principal market is presumed to be the market in which the reporting entity normally transacts. In the absence of a principal market for the asset or liability, a reporting entity should determine the most advantageous market. The amendments also change existing U.S. GAAP by limiting the concepts of the valuation premise and highest and best use to measuring the fair value of nonfinancial assets only. New and revised disclosure requirements include: quantitative information about significant unobservable inputs used for all Level 3 fair value measurements and a description of the valuation processes in place, as well as a qualitative discussion about the sensitivity of recurring Level 3 fair value measurements; public companies will need to disclose any transfers between Level 1 and Level 2 fair value measurements on a gross basis, including the reason(s) for those transfers (current U.S. GAAP requires disclosure for significant transfers only); a requirement regarding disclosure on the highest and best use of a nonfinancial asset (if the highest and best use of a nonfinancial asset differs from its current use, the entity will be required to disclose the reason(s) why the assets is being used differently); and a requirement that all fair value measurements be categorized in the fair value hierarchy with disclosure of that categorization. FASB ASU No. 2011-04 will be effective on a prospective basis for public companies during interim and annual periods beginning after December 15, 2011. Early adoption by public companies is not permitted. We do not expect the adoption of this ASU to have an impact on our consolidated financial position, results of operations or cash flows.
In June 2011, the FASB issued FASB ASU No. 2011-05, “Presentation of Comprehensive Income,” which is now codified under FASB ASC Topic 220, “Comprehensive Income.” This ASU gives entities two options for presenting the total of comprehensive income, the components of net income and the components of other comprehensive income. The first option is a single, continuous statement of comprehensive income. The second option is two separate, but consecutive statements. In either option, each component of net income, along with total net income; each component of other comprehensive income, along with a total of other comprehensive income; and a total of comprehensive income must be presented. The amendments eliminate the option to present the components of other comprehensive income as a part of the statement of changes in stockholders’ equity. This ASU does not change the items which must be reported in other comprehensive income or when an item of other comprehensive income must be reclassified to net income. FASB ASU No. 2011-05 should be applied retrospectively, and for public companies is effective for fiscal years, and interim periods within those years, beginning after December 15, 2011. Early adoption is permitted. We are evaluating the disclosure options, and do not expect the adoption of this ASU to have an impact on our consolidated financial position, results of operations or cash flows.