Note 14 - Recent Accounting Pronouncements

6 Months Ended

Jun. 30, 2011

Description of New Accounting Pronouncements Not yet Adopted [Text Block]

14. Recent Accounting Pronouncements

Fair Value Measurement

Accounting Standards Update (“ASU”) 2011-04, “Amendments to Achieve Common Fair Value Measurement and Disclosure Requirements in U.S. GAAP and IFRSs,” ensures that U.S. generally accepted accounting principles are aligned with International Accounting Standards.  ASU 2011-04 does not modify the requirements for when fair value measurements apply, but rather clarifies on how to measure and disclose fair value under Accounting Standards Codification (“ASC”) No. 820, “Fair Value Measurement.”  ASU 2011-04 clarifies the following:

· The highest and best use and valuation premise concepts apply only to nonfinancial assets;

· The option to measure certain groups of financial assets and liabilities on a net basis;

· Provides guidance on incorporating certain premiums and discounts in fair value measurement;

· Provides guidance on measuring the fair value of items classified in shareholders’ equity; and

· New disclosures include:

o For both recurring and nonrecurring fair value measurements, the reason for the measurement;

o All transfers between levels of the fair value hierarchy;

o For Level 2 fair value measurements, a description of the valuation technique(s) and inputs used in those measurements;

o For Level 3 fair value measurement:

§ Quantitative information about significant unobservable inputs;

§ Description of the valuation processes;

§ Qualitative discussion about the sensitivity of the measurements;

o Information about the use of a nonfinancial asset when it differs from the asset’s highest and best use; and

o The level of fair value hierarchy for assets and liabilities that are not measured at fair value but whose fair value is required to be disclosed.

Any revisions resulting from a change in valuation technique or its application will be accounted for as a change in accounting estimate, in accordance with ASC No. 250, “Accounting Changes and Error Corrections.”  If an entity changes a valuation technique and related inputs as a result of applying the amended guidance, then the entity must disclose the change and quantify its total effect, if practicable.  ASU 2011-04 is effective prospectively for interim and annual periods beginning after December 15, 2011.  Early adoption is not permitted.  The Company does not expect ASU 2011-04 will have a material impact on its financial position and results of operations, however, it may change certain fair value disclosures.

Comprehensive Income

ASU 2011-05, “Presentation of Comprehensive Income,” improves the comparability of financial reporting and ensures that U.S. generally accepted accounting principles are aligned with International Accounting Standards.  ASU 2011-05 requires entities to present all nonowner changes in stockholders’ equity either as a single continuous statement of comprehensive income or as two separate but consecutive statements.  The components of other comprehensive income (“OCI”) have not changed, nor has the guidance on when OCI items are reclassified to net income, however, ASU 2011-05 requires entities to present all reclassification adjustments to OCI to net income on the face of the statement of comprehensive income.  Similarly, ASU 2011-05 does not change the guidance to disclose OCI components gross or net of the effect of income taxes, provided that the tax effects are presented on the face of the statement in which OCI is presented or disclosed in the notes to the financial statements.  ASU 2011-05 is effective for interim and annual periods beginning after December 15, 2011.  ASU 2011-05 should be applied retrospectively and early adoption is permitted.  The Company does not expect ASU 2011-05 will have a material impact on its financial position and results of operations, however, it may change certain disclosures.