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Note 2 - Accounting Policies
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9 Months Ended |
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Mar. 31, 2013
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| Significant Accounting Policies [Text Block] |
NOTE
2 – ACCOUNTING POLICIES
Use
of Estimates
The
preparation of consolidated financial statements in
conformity with accounting principles generally accepted in
the United States of America requires management to make
estimates and assumptions that affect the reported amounts of
assets and liabilities and disclosure of contingent assets
and liabilities at the date of the financial statements and
the reported amounts of revenues and expenses during the
reporting period. Actual results could differ from those
estimates.
New
Accounting Pronouncements
In
July 2012, the Financial Accounting Standards Board issued
Accounting Standards Update 2012-02 (“ASU
2012-02”), Intangibles — Goodwill and Other
(Topic 350): Testing Indefinite-Lived Intangible Assets for
Impairment. The purpose of ASU 2012-02, which amends the
guidance to Topic 350, Intangibles — Goodwill and
Other, is to simplify the guidance for testing the decline in
the realizable value (impairment) of indefinite-lived
intangible assets other than goodwill. ASU 2012-02 allows an
entity to perform a qualitative assessment to determine
whether further impairment testing of indefinite-lived
intangible assets is necessary, similar in approach to the
qualitative goodwill impairment test. The amendments in ASU
2012-02 permit an entity to first assess qualitatively
whether it is more likely than not (more than 50%) that an
indefinite-lived intangible asset is impaired, thus
necessitating that it perform the quantitative impairment
test. An entity is not required to calculate the fair value
of an indefinite lived intangible asset and perform the
quantitative impairment test unless the entity determines
that it is more likely than not that the asset is impaired.
ASU 2012-02 is effective for annual and interim impairment
tests performed for fiscal years beginning after September
15, 2012 and early adoption is permitted. The adoption of
this ASU is not expected to have a material impact on the
Company’s financial statements.
In
February 2013, the FASB issued ASU 2013-02, which established
the effective date for the requirement to present components
of reclassifications out of accumulated other comprehensive
income on the face of the income statement. The standard is
effective in the second quarter of fiscal 2013, and is not
expected to have a material impact on the consolidated
financial statements.
In
March 2013, the FASB issued guidance on a parent’s
accounting for the cumulative translation adjustment upon
derecognition of a subsidiary or group of assets within a
foreign entity. This new guidance requires that the parent
release any related cumulative translation adjustment into
net income only if the sale or transfer results in the
complete or substantially complete liquidation of the foreign
entity in which the subsidiary or group of assets had
resided. The new guidance will be effective for us beginning
July 1, 2014. We do not anticipate material impacts on
our financial statements upon adoption.
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