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New Accounting Standards
3 Months Ended
Sep. 30, 2011
New Accounting Standards 
New Accounting Standards

NOTE 4.    NEW ACCOUNTING STANDARDS

 

Goodwill Impairment Measurements

 

In September 2011, the Financial Accounting Standards Board ("FASB") issued and update to Codification Topic 350, Intangibles- Goodwill and Other, which is intended to simplify how an entity tests goodwill for impairment. The amendments will allow an entity to first assess qualitative factors to determine whether it is necessary to perform the two-step quantitative goodwill impairment test. An entity no longer will be required to calculate the fair value of a reporting unit unless the entity determines, based on a qualitative assessment, that it is more likely than not that its fair value is less than its carrying amount. The changes to Codification Topic 350 will be effective for the Company beginning July 1, 2012 and will not have a material impact on the Company's consolidated financial statements or disclosures. Early adoption is permitted.

 

Fair Value Measurements

 

In May 2011, the FASB and International Accounting Standards Board ("IASB") issued new guidance on fair value measurement and disclosure requirements. This update will supersede most of the guidance in Codification Topic 820, Fair Value Measurements and Disclosures. Many of the changes to Codification Topic 820, Fair Value Measurements and Disclosures are clarifications of existing guidance or wording changes to align with International Financial Reporting Standards. The update does not extend the use of fair value accounting, but does provide guidance on how it should be applied where it is already required or permitted under current U.S. generally accepted accounting principles. The changes to Codification Topic 820 will be effective for the Company beginning January 1, 2012 and will not have a material impact on the Company's consolidated financial statements or disclosures.

 

Comprehensive Income

 

In June 2011, the FASB issued ASU No. 2011-05, Comprehensive Income (Topic 220): Presentation of Comprehensive Income. This update is intended to increase the prominence of other comprehensive income in financial statements. This update will supersede some of the guidance in Codification Topic 220 and in particular, requires companies to present comprehensive income in either one or two consecutive financial statements. The option under current accounting standards that permits the presentation of other comprehensive income in the statement of changes in equity has been eliminated. The amendments in this update should be applied retrospectively. The changes to Codification Topic 220 will be effective for the Company beginning July 1, 2012 and although this update does not have a material impact on the Company's consolidated financial statements, it will require changing the Company's presentation and disclosure of comprehensive income.