Attached files

file filename
EXCEL - IDEA: XBRL DOCUMENT - Petron Energy II, Inc.Financial_Report.xls
10-K - FORM 10-K - Petron Energy II, Inc.tenk.htm
XML - IDEA: XBRL DOCUMENT - Petron Energy II, Inc.R2.htm
XML - IDEA: XBRL DOCUMENT - Petron Energy II, Inc.R9.htm
XML - IDEA: XBRL DOCUMENT - Petron Energy II, Inc.R1.htm
XML - IDEA: XBRL DOCUMENT - Petron Energy II, Inc.R6.htm
XML - IDEA: XBRL DOCUMENT - Petron Energy II, Inc.R4.htm
XML - IDEA: XBRL DOCUMENT - Petron Energy II, Inc.R8.htm
XML - IDEA: XBRL DOCUMENT - Petron Energy II, Inc.R5.htm
XML - IDEA: XBRL DOCUMENT - Petron Energy II, Inc.R7.htm
XML - IDEA: XBRL DOCUMENT - Petron Energy II, Inc.R3.htm
XML - IDEA: XBRL DOCUMENT - Petron Energy II, Inc.R11.htm
XML - IDEA: XBRL DOCUMENT - Petron Energy II, Inc.R14.htm
XML - IDEA: XBRL DOCUMENT - Petron Energy II, Inc.R15.htm
XML - IDEA: XBRL DOCUMENT - Petron Energy II, Inc.R18.htm
XML - IDEA: XBRL DOCUMENT - Petron Energy II, Inc.R16.htm
XML - IDEA: XBRL DOCUMENT - Petron Energy II, Inc.R17.htm
XML - IDEA: XBRL DOCUMENT - Petron Energy II, Inc.R10.htm
EX-31 - EXHIBIT 31 - Petron Energy II, Inc.exhibit31.htm
EX-32 - EXHBIT 32 - Petron Energy II, Inc.exhibit32.htm
XML - IDEA: XBRL DOCUMENT - Petron Energy II, Inc.R12.htm
v2.4.0.6
RECENT ACCOUNTING PRONOUNCEMENTS
12 Months Ended
Dec. 31, 2011
Notes to Financial Statements  
NOTE 7 - RECENT ACCOUNTING PRONOUNCEMENTS

The FASB established the FASB Accounting Standards Codification (“Codification”) as the source of authoritative U.S. generally accepted accounting principles (“GAAP”) recognized by the FASB to be applied by nongovernmental entities in the preparation of financial statements issued for interim and annual periods ending after September 15, 2009. The codification has changed the manner in which U.S. GAAP guidance is referenced, but did not have an impact on the consolidated financial position, results of operations or cash flows of the Company

 

In January 2010, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) 2010-06, “Fair Value Measurements and Disclosures (Topic 820) — Improving Disclosures about Fair Value Measurements.” This ASU requires some new disclosures and clarifies some existing disclosure requirements about fair value measurement as set forth in Accounting Standards Codification (“ASC”) 820. ASU 2010-06 amends ASC 820 to now require: (1) a reporting entity should disclose separately the amounts of significant transfers in and out of Level 1 and Level 2 fair value measurements and describe the reasons for the transfers; and (2) in the reconciliation for fair value measurements using significant unobservable inputs, a reporting entity should present separately information about purchases, sales, issuances, and settlements. In addition, ASU 2010-06 clarifies the requirements of existing disclosures. ASU 2010-06 is effective for interim and annual reporting periods beginning after December 15, 2009, except for the disclosures about purchases, sales, issuances, and settlements in the roll forward of activity in Level 3 fair value measurements. Those disclosures are effective for fiscal years beginning after December 15, 2010, and for interim periods within those fiscal years. Early application is permitted. The Company will comply with the additional disclosures required by this guidance upon its adoption in January 2010.

 

Also in January 2010, the FASB issued Accounting Standards Update No. 2010-03, “Extractive Activities—Oil and Gas—Oil and Gas Reserve Estimation and Disclosures.” This ASU amends the “Extractive Industries—Oil and Gas” Topic of the Codification to align the oil and gas reserve estimation and disclosure requirements in this Topic with the SEC’s Release No. 33-8995, “Modernization of Oil and Gas Reporting Requirements (Final Rule),” discussed below. The amendments are effective for annual reporting periods ending on or after December 31, 2009, and the adoption of these provisions on December 31, 2009 did not have a material impact on our consolidated financial statements.

 

On December 31, 2008, the Securities and Exchange Commission, referred to in this report as the SEC, issued Release No. 33-8995, “Modernization of Oil and Gas Reporting Requirements (Final Rule),” which revises the disclosures required by oil and gas companies. The SEC disclosure requirements for oil and gas companies have been updated to include expanded disclosure for oil and gas activities, and certain definitions have also been changed that will impact the determination of oil and gas reserve quantities. The provisions of this final rule are effective for registration statements filed on or after January 1, 2010, and for annual reports for fiscal years ending on or after December 31, 2009.

 

In August 2009, the FASB issued ASU No. 2009-05, “Fair Value Measurements and Disclosures (Topic 820) —Measuring Liabilities at Fair Value,” related to fair value measurement of liabilities. This update provides clarification that in circumstances in which a quoted price in an active market for an identical liability is not available, a reporting entity is required to measure fair value using one or more valuation techniques. This guidance is effective for the first reporting period beginning after issuance.

 

In June 2009, the FASB issued guidance under ASC 105, “Generally Accepted Accounting Principles.” This guidance established a new hierarchy of GAAP sources for non-governmental entities under the FASB Accounting Standards Codification. The Codification is the sole source for authoritative U.S. GAAP and supersedes all accounting standards in U.S. GAAP, except for those issued by the SEC. The guidance was effective for financial statements issued for reporting periods ending after September 15, 2009. The adoption had no impact on the Company’s financial position, cash flows or results of operations.

 

In May 2009, the FASB issued guidance under ASC 855 “Subsequent Events,” which sets forth: (1) the period after the balance sheet date during which management of reporting entity should evaluate events or transactions that may occur for potential recognition or disclosure in the financial statements, (2) the circumstances under which an entity should recognize events or transactions occurring after the balance sheet date in its financial statements and (3) the disclosures that an entity should make about events or transactions that occurred after the balance sheet date. The guidance was effective on a prospective basis for interim or annual financial periods ending after June 15, 2009.

 

In April 2009, the FASB updated its guidance under ASC 820, “Fair Value Measurements and Disclosures,” related to estimating fair value when the volume and level of activity for an asset or liability have significantly decreased and identifying circumstances that indicate a transaction is not orderly. The guidance was effective for interim and annual reporting periods ending after June 15, 2009 with early adoption permitted for periods ending after March 15, 2009. The adoption of this guidance did not have any impact on the Company’s results of operations. Also in April 2009, the FASB updated its guidance under ASC 825, “Financial Instruments,” which requires disclosures about fair value of financial instruments for interim reporting periods of publicly traded companies as well as in annual financial statements. This guidance also requires those disclosures in summarized financial information at interim reporting periods. The guidance was effective for interim reporting periods ending after June 15, 2009 with early adoption permitted for periods ending after March 15, 2009.