Recent Accounting Pronouncements

6 Months Ended

Oct. 31, 2012

Recent Accounting Pronouncements [Abstract]

Recent Accounting Pronouncements

9.Recent Accounting Pronouncements

Effective May 1, 2012, we adopted new accounting guidance which revises the manner in which we present comprehensive income in our financial statements. The new guidance removes the presentation options previously allowed and requires companies to report components of comprehensive income as part of the consolidated statement of income or as a separate consolidated statement of comprehensive income. The revised guidance did not change the items that must be reported in other comprehensive income. Comprehensive income consists of net income and other comprehensive income (loss). Other comprehensive income (loss) refers to revenues, expenses, gains and losses that are not included in net income, but rather are recoded directly in stockholders’ equity. During the six months ended October 31, 2012 and 2011 there were no amounts recorded directly in stockholders’ equity and therefore there was no difference between net income and comprehensive income for these two respective periods.

Effective May 1, 2012, we adoptednew accounting guidance that is intended to simplify goodwill impairment testing by providing the option to first perform a qualitative assessment step to determine whether the required quantitative impairment analysis that exists today is necessary. If a qualitative assessment is performed the fair value calculation for goodwill will not be required unless we conclude, based on the qualitative assessment, that it is more likely than not that the fair value of a reporting unit is less than its book value. If such a decline in fair value is deemed more likely than not to have occurred, then the quantitative goodwill impairment test that exists under current GAAP must be completed; otherwise, goodwill is deemed to be not impaired and no further testing is required until the next annul test date (or sooner if conditions or events before that date raise concerns of potential impairment in the business). The amended goodwill impairment guidance does not affect the manner in which a company estimates fair value. We do not currently intend to perform a qualitative assessment and therefore anticipate this will not have an impact on our annual goodwill testing.