In May 2011, the FASB issued ASU 2011-04, Fair Value
Measurement (Topic 820): Amendments to Achieve Common Fair Value Measurement and Disclosure Requirements in U.S. GAAP and IFRSs,
which is effective for annual reporting periods beginning after December 15, 2011. This guidance amends certain accounting and
disclosure requirements related to fair value measurements. Additional disclosure requirements in the update include: (1) for Level
3 fair value measurements, quantitative information about unobservable inputs used, a description of the valuation processes used
by the entity, and a qualitative discussion about the sensitivity of the measurements to changes in the unobservable inputs; (2)
for an entitys use of a nonfinancial asset that is different from the assets highest and best use, the reason for
the difference; (3) for financial instruments not measured at fair value but for which disclosure of fair value is required, the
fair value hierarchy level in which the fair value measurements were determined; and (4) the disclosure of all transfers between
Level 1 and Level 2 of the fair value hierarchy. The Company adopted ASU 2011-04 on July 1, 2012 and there was no impact on the
financial statements upon the adoption.
In June 2011, the Financial Accounting Standards Board (FASB)
issued Accounting Standards Update (ASU) 2011-05, Comprehensive Income (Topic 220): Presentation of Comprehensive Income, which
is effective for annual reporting periods beginning after December 15, 2011. ASU 2011-05 will become effective for the Company
on July 1, 2012. This guidance eliminates the option to present the components of other comprehensive income as part of the statement
of changes in stockholders equity. In addition, items of other comprehensive income that are reclassified to profit or loss
are required to be presented separately on the face of the financial statements. This guidance is intended to increase the prominence
of other comprehensive income in financial statements by requiring that such amounts be presented either in a single continuous
statement of income and comprehensive income or separately in consecutive statements of income and comprehensive income. The Company
adopted ASU 2011-05 on July 1, 2012 and is not expected to have a material impact on the Companys financial position or
results of operations.
In September 2011, the FASB issued an update to ASC Topic
350, Intangibles Goodwill and Other. This ASU amends the guidance in ASC Topic 350-20 on testing
for goodwill impairment. The revised guidance allows entities testing for goodwill impairment to have the option of performing
a qualitative assessment before calculating the fair value of the reporting unit. The ASU does not change how goodwill is calculated
or assigned to reporting units, nor does it revise the requirement to test annually for impairment. The ASU is limited to goodwill
and does not amend the annual requirement for testing other indefinite-lived intangible assets for impairment. The adoption of
this ASU is not expected to have impact on the Companys financial statements.
In December 2011, the Financial Accounting Standards Board
(FASB) issued Accounting Standards Update (ASU) No. 2011-11 Balance Sheet (Topic 210)Disclosures about Offsetting
Assets and Liabilities. ASU 2011-11 requires an entity 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. ASU 2011-11 is effective for annual reporting periods beginning on
or after January 1, 2013, and interim periods within those annual periods. Retrospective disclosure is required for all
comparative periods presented. The Company is assessing the impact of ASU 2011-11 on its disclosures.
In July 2012, the FASB issued ASU No. 2012-02, Testing
Indefinite-Lived Intangible Assets for Impairment (ASU 2012-02). The amendments in this update provide an entity
with the option to make a qualitative assessment about the likelihood that an indefinite-lived intangible asset is impaired to
determine whether it should perform a quantitative impairment test. ASC 2012-02 is effective for fiscal years and interim periods
beginning after September 15, 2012. The Company does not expect the adoption of ASU 2012-02 on January 1, 2013 to have
a material impact on its financial position or results of operations.
Other accounting standards that have been issued or proposed
by the FASB or other standards-setting bodies that do not require adoption until a future date are not expected to have a material
impact on the Companys financial statements upon adoption.