Accounting Policies |
9 Months Ended |
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Sep. 30, 2011 | |
| Accounting Policies [Abstract] | |
| ACCOUNTING POLICIES |
2. ACCOUNTING POLICIES
Recently Adopted Accounting Policies
In April 2010, the Financial Accounting Standards Board, or FASB, issued ASU No. 2010 — 17 —
Revenue Recognition — Milestone Method (Topic 605): Milestone Method of Revenue Recognition. This
standard provides guidance on defining a milestone and determining when it may be appropriate to
apply the milestone method of revenue recognition for certain research and development
transactions. Under this new standard, a company can recognize consideration that is contingent
upon achievement of a milestone as revenue in the period in which the milestone is achieved as long
as the milestone is considered substantive according to the criteria set forth in this new
standard. The Company adopted this standard on a prospective basis beginning in the quarter ended
March 31, 2011. The adoption of this standard did not have a significant impact on our financial
position or results of operations.
In January 2010, the FASB issued amended guidance on fair value measurements and disclosures. The
new guidance requires additional disclosures regarding fair value measurements, amends disclosures
about post-retirement benefit plan assets, and provides clarification regarding the level of
disaggregation of fair value disclosures by investment class. This guidance is effective for
interim and annual reporting periods beginning after December 15, 2009, except for certain Level 3
activity disclosure requirements that are effective for reporting periods beginning after December
15, 2010. Accordingly, we adopted this amendment in the quarter ended March 31, 2010, while the
additional Level 3 requirements were adopted
in the quarter ended March 31, 2011. The adoption of this standard did not have a significant
impact on our financial position or results of operations.
Recent Accounting Pronouncements
In May 2011, the FASB issued ASU No. 2011-04, “Fair Value Measurement.” This ASU clarifies the
concepts related to highest and best use and valuation premise, blockage factors and other premiums
and discounts, the fair value measurement of financial instruments held in a portfolio and of those
instruments classified as a component of shareowners’ equity. The guidance includes enhanced
disclosure requirements about recurring Level 3 fair value measurements, the use of nonfinancial
assets, and the level in the fair value hierarchy of assets and liabilities not recorded at fair
value. The provisions of this ASU are effective prospectively for interim and annual periods
beginning on or after December 15, 2011. Early application is prohibited. We are currently
evaluating the impact of this new ASU.
In June 2011, the FASB issued ASU No. 2011-05, “Comprehensive Income.” This ASU intends to enhance
comparability and transparency of other comprehensive income components. The guidance provides an
option to present total comprehensive income, the components of net income and the components of
other comprehensive income in a single continuous statement or two separate but consecutive
statements. This ASU eliminates the option to present other comprehensive income components as part
of the statement of changes in shareowners’ equity. The provisions of this ASU will be applied
retrospectively for interim and annual periods beginning after December 15, 2011. Early application
is permitted. We are currently evaluating the impact of this new ASU.
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