Accounting Standards Updates

6 Months Ended

Jun. 30, 2013

Accounting Standards Updates [Abstract]

Accounting Standards Updates [Text Block]

Note D – Accounting Standards Updates

In February 2013, an accounting standards update was issued to amend and improve the reporting of reclassifications out of accumulated other comprehensive income.  The amendments do not change the current requirements for reporting net income or other comprehensive income in the financial statements.  However, the amendments require an entity to provide information about the amounts reclassified out of accumulated other comprehensive income by component.  In addition, an entity is required to present, either on the face of the statement where net income is presented or in the notes, significant amounts reclassified out of accumulated other comprehensive income by the respective line items of net income but only if the amount reclassified is required under U.S. GAAP to be reclassified to net income in its entirety in the same reporting period.  For other amounts that are not required under U.S. GAAP to be reclassified in their entirety to net income, an entity is required to cross-reference to other disclosures that provide additional detail about those amounts.  This new guidance became effective prospectively for all annual and interim periods beginning January 1, 2013 and it did not have a material effect on the Corporation's condensed consolidated financial statements upon implementation.

In April 2013, an accounting standards update was issued to improve the reporting as to when and how the liquidation basis of accounting should be applied.  The update requires an entity to prepare its financial statements using the liquidation basis of accounting when liquidation is 'imminent'.  Liquidation is deemed imminent when the likelihood is remote that the entity will return from liquidation and either (a) a plan for liquidation is approved by the person or persons with the authority to make such a plan effective and the likelihood is remote that the execution of the plan will be blocked by other parties or (b) a plan for liquidation is being imposed by other forces (for example, involuntary bankruptcy).  The update requires financial statements prepared using the liquidation basis of accounting to present relevant information about an entity's expected resources in liquidation by measuring and presenting assets at the amount of the expected cash proceeds from liquidation.  An entity is required to recognize and measure its liabilities in accordance with U.S. GAAP that otherwise applies to those liabilities.  The entity is also required to accrue and separately present the costs that it expects to incur and the income that it expects to earn during the anticipated duration of the liquidation process, including any costs associated with sale or settlement of its assets and liabilities.  This new guidance will become effective for entities that determine liquidation is imminent during annual and interim periods beginning January 1, 2014 and should be applied prospectively from the day that liquidation becomes imminent.  Early adoption is permitted.  Capitol's management has determined that liquidation is not currently imminent for the Corporation, as defined by this accounting standards update, and will continue to evaluate adoption of this accounting guidance if the Corporation meets the criteria for reporting under the liquidation basis of accounting in the future.