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Note 2 - Accounting Policies
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9 Months Ended |
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Mar. 31, 2012
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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
December 2011, the FASB issued guidance on offsetting
(netting) assets and liabilities. Entities are required to
disclose both gross information and net information about
both instruments and transactions eligible for offset in the
statement of financial position and instruments and
transactions subject to an agreement similar to a master
netting arrangement. The new guidance is effective for annual
periods beginning after January 1, 2013.
In
September 2011, the FASB issued guidance on testing goodwill
for impairment. The new guidance provides an entity the
option to first perform a qualitative assessment to determine
whether it is more likely than not that the fair value of a
reporting unit is less than its carrying amount. If an entity
determines that this is the case, it is required to perform
the currently prescribed two-step goodwill impairment test to
identify potential goodwill impairment and measure the amount
of goodwill impairment loss to be recognized for that
reporting unit (if any). If an entity determines that the
fair value of a reporting unit is less than its carrying
amount, the two-step goodwill impairment test is not
required. The new guidance is effective for annual and
interim goodwill impairment tests performed for fiscal years
beginning after December 15, 2011, with early adoption
permitted.
In
June 2011, the FASB issued guidance on presentation of
comprehensive income. The new guidance eliminates the current
option to report other comprehensive income and its
components in the statement of changes in equity. Instead, an
entity will be required to present either a continuous
statement of net income and other comprehensive income or in
two separate but consecutive statements. The new guidance is
effective for annual periods beginning after December 15,
2011. In December 2011, the FASB issued a deferral of certain
portion of this guidance.
In
May 2011, the FASB issued guidance to amend the accounting
and disclosure requirements on fair value measurements. The
new guidance limits the highest-and-best-use measure to
nonfinancial assets, permits certain financial assets and
liabilities with offsetting positions in market or
counterparty credit risks to be measured at a net basis, and
provides guidance on the applicability of premiums and
discounts. Additionally, the new guidance expands the
disclosures on Level 3 inputs by requiring quantitative
disclosure of the unobservable inputs and assumptions, as
well as description of the valuation processes and the
sensitivity of the fair value to changes in unobservable
inputs. The new guidance is effective for annual periods
beginning after December 15, 2011.
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