Recently Issued Accounting Standard Updates
|
9 Months Ended |
---|---|
Oct. 31, 2011
|
|
Recently Issued Accounting Standard Updates |
16. Recently Issued Accounting Standard Updates
Fair Value Measurement
In
May 2011, the FASB issued amended guidance clarifying how to
measure and disclose fair value. This guidance amends the
application of the “highest and best use” concept to be
used only in the measurement of the fair value of nonfinancial
assets, clarifies that the measurement of the fair value of
equity-classified financial instruments should be performed from
the perspective of a market participant who holds the instrument as
an asset, clarifies that an entity that manages a group of
financial assets and liabilities on the basis of its net risk
exposure to those risks can measure those financial instruments on
the basis of its net exposure to those risks, and clarifies when
premiums and discounts should be taken into account when measuring
fair value. The fair value disclosure requirements also were
amended. These provisions are effective for reporting periods
beginning on or after December 15, 2011 applied prospectively.
Early application is not permitted. The Company is currently
reviewing what effect, if any, this new provision will have on its
Consolidated Financial Statements.
Goodwill Impairment Test
In September 2011, the FASB issued additional
guidance on goodwill impairment testing. This
guidance permits an entity to first assess qualitative factors to
determine whether it is more likely than not that the fair value of
a reporting unit is less than its carrying amount as a basis for
determining whether it is necessary to perform the two-step
goodwill impairment test. This guidance is effective for annual and
interim goodwill impairment tests performed for fiscal years
beginning after December 15, 2011 with early adoption permitted.
The Company will adopt the new guidance in the first quarter of
fiscal 2012 starting on February 1, 2012. The Company anticipates
that it will not have a material impact on our consolidated
financial position or results of operations.
|