Recent Accounting Pronouncements

9 Months Ended

Sep. 30, 2012

Recent Accounting Pronouncements [Abstract]

Recent Accounting Pronouncements

Note N – Recent Accounting Pronouncements

ASU 2012-02 “Testing Indefinite-Lived Intangible Assets for Impairment”

In July 2012, the FASB issued Accounting Standards Update 2012-02, “Testing Indefinite-Lived Intangible Assets for Impairment” (“ASU 2012-02”) which amends the guidance in Accounting Standards Codification Topic 350-30 “Intangibles – Goodwill and Other – General Intangibles Other than Goodwill” (“ASC 350-30”) on testing indefinite-lived intangible assets, other than goodwill, for impairment. Under ASU 2012-02, an entity testing an indefinite-lived intangible asset for impairment has the option of performing a qualitative assessment before calculating the fair value of the asset. If the entity determines, on the basis of qualitative factors, that the fair value of the indefinite-lived intangible asset is not more likely than not impaired, the entity would not need to calculate the fair value of the asset. The ASU does not revise the requirement to test indefinite-lived intangible assets annually for impairment. These provisions are effective for annual and interim impairment tests performed for fiscal years beginning after September 15, 2012, although early adoption is permitted. The provisions of ASU 2012-02 are not expected to have a material impact on CTS’ consolidated financial statements.

ASU 2012-03 “Technical Amendments and Corrections to SEC Sections”

In August 2012, the FASB issued Accounting Standards Update 2012-03 “Technical Amendments and Corrections to SEC Sections” (“ASU 2012-03”) which amends a number of SEC sections in the FASB Accounting Standards Codification as a result of (1) the issuance of Staff Accounting Bulletin No. 114 (“SAB 114”), (2) the issuance of SEC Final Rule 33-9250 “Technical Amendments to Commission Rules and Forms Related to the FASB’s Accounting Standards Codification”, and (3) corrections related to Accounting Standards Update 2010-22, “Accounting for Various Topics – Technical Corrections to SEC Paragraphs” (“ASU 2010-22”). The provisions are effective upon issuance. The provisions of ASU 2012-03 are not expected to have a material impact on CTS’ consolidated financial statements.

ASU 2012-04 “Technical Corrections and Improvements”

In October 2012, the FASB issued Accounting Standards Update 2012-04, “Technical Corrections and Improvements” (“ASU 2012-04”) which makes certain technical corrections and “conforming fair value amendments” to the FASB Accounting Standards Codification. The amendments affect various Codification topics and apply to all reporting entities within the scope of those topics. The technical corrections (Section A) are divided into three main categories: (1) Source literature amendments – amendments to carry forward the original intent of certain pre-Codification authoritative literature that was inadvertently altered during the Codification process, (2) Guidance clarification and reference corrections – changes in wording and references to avoid misapplication or misinterpretation of guidance, and (3) Relocated guidance – moving guidance from one part of the Codification to another to correct instances in which the scope of pre-Codification guidance may have been unintentionally narrowed or broadened during the Codification process. The purpose of Section B of ASU 2012-04 is to conform the use of the term “fair value” throughout the Codification “to fully reflect the fair value measurement and disclosure requirements” of Accounting Standards Codification Topic 820 “Fair Value Measurement” (“ASC 820”). These provisions are effective upon issuance, except for amendments that are subject to transition guidance, which will be effective for fiscal periods beginning after December 15, 2012. The provisions of ASU 2012-04 are not expected to have a material impact on CTS’ consolidated financial statements.