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RECENT ACCOUNTING PRONOUNCEMENTS
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6 Months Ended |
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Jun. 30, 2011
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| RECENT ACCOUNTING PRONOUNCEMENTS |
NOTE 8 - RECENT ACCOUNTING PRONOUNCEMENTS
In
April 2011, the FASB issued ASU No. 2011-02, Receivables (Topic 310): A
Creditor’s Determination of Whether a Restructuring Is a
Troubled Debt Restructuring, which provides guidance on
determining whether a restructuring of a receivable meets the
criteria to be considered a TDR. The new guidance is
required to be adopted for the first interim or annual reporting
period beginning after June 15, 2011, and is to be applied
retrospectively to the beginning of the annual reporting period of
adoption. The adoption of this ASU is not expected to
have a material impact to the Company’s financial position or
results of operations.
In
April 2011, the FASB issued ASU No. 2011-03, Transfers and Servicing
(Topic 860): Reconsideration of Effective Control for Repurchase
Agreements, which removes from the assessment of effective
control the criterion relating to the transferor’s ability to
repurchase or redeem financial assets on substantially the
agreed-upon terms, even in the event of default by the
transferee. The amendments in this ASU also eliminate
the requirement to demonstrate that the transferor possesses
adequate collateral to fund substantially all the cost of
purchasing replacement assets. The amendments in this
ASU are effective for interim and annual periods beginning after
December 31, 2011, with prospective application to transactions or
modifications of existing transactions that occur on or after the
effective date. Early adoption is not
permitted. The Company will adopt these amendments when
required, and does not anticipate that the ASU will have an impact
on its financial position or results of operations.
In
May 2011, The FASB issued ASU No. 2011-04, Fair Value Measurement (Topic
820): Amendments to Achieve Common Fair Value Measurement and
Disclosure Requirements in U.S. GAAP and IFRS, which
outlines the collaborative effort of the FASB and the International
Accounting Standards Board (“IASB”) to consistently
define fair value and to come up with a set of consistent
disclosures for fair value. The amendments in this ASU
explain how to measure fair value. They do not require additional
fair value measurements and are not intended to establish valuation
standards or affect valuation practices outside of financial
reporting. The amendments in this ASU are to be applied
prospectively. For public entities, the amendments are
effective for interim and annual periods beginning after December
31, 2011. Early application is not
permitted. The Company will adopt these amendments when
required, and does not believe the application will have a material
effect on its financial position or results of
operations.
In
June 2011, the FASB issued ASU No. 2011-05, Comprehensive Income (Topic
220): Presentation of Comprehensive Income, which amends
existing standards 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. Under both options, 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. Any changes pursuant to the
options allowed in the amendments should be applied
retrospectively. For public entities, the amendments are
effective for fiscal years, and interim periods within those years,
beginning after December 15, 2011. Early adoption is
permitted. The Company is evaluating its timing of
adoption, but will adopt it retrospectively by the effective
date.
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