New Accounting Standards
Fair Value Measurements
In September 2006, the FASB issued Statement No. 157, Fair Value Measurements. The Statement defines fair value, establishes a framework for measuring fair value in the context of GAAP and expands the disclosure surrounding fair value measurement. In January 2008, the FASB deferred the implementation of this standard for all non-financial assets and non-financial liabilities, except those that are recognized or disclosed at fair value in the financial statements on a recurring basis, until January 1, 2009. For financial assets and liabilities, the Company has adopted this standard on January 1, 2008.
Fair Value Option for Assets and Liabilities
In February 2007, the FASB issued Statement No. 159, Fair Value Option for Financial Assets and Liabilities. This standard provides companies with an option to measure, at specified election dates, certain financial assets and liabilities at fair value. Changes in fair value are recognized in earnings. The Company has adopted this standard effective January 1, 2008, but has not elected to use the optional fair value measurement.
Future Accounting Standards
The following standards will be effective for the Company beginning on January 1, 2009. Management does not expect the adoption of any of these standards to significantly impact the financial statements.
In December 2007, the FASB issued Statement No. 141(R), Business Combinations. This Statement retains the fundamental requirements in FAS 141, requiring that the acquisition method of accounting be used for all business combinations and for an acquirer to be identified for each business combination. The Statement revises how the acquisition method is applied when measuring and recognizing certain items acquired.
Accounting for Non-Controlling Interests
In December 2007, the FASB issued Statement No. 160, Non-Controlling Interests in Consolidated Financial Statements. This Statement amends ARB 51 to establish accounting and reporting standards for a non-controlling interest in a subsidiary and for deconsolidation of a subsidiary.
Derivative Instrument and Hedging Activities Disclosures
In March 2008, the FASB issued Statement No. 161, Disclosures about Derivative Instruments and Hedging Activities. This Statement revises disclosure requirements for derivative instruments and hedging activities.