RNOW » Topics » Recently Issued Accounting Standards

This excerpt taken from the RNOW 10-Q filed May 8, 2009.

Recently Issued Accounting Standards

 

In April 2009, the Financial Accounting Standards Board (“FASB”) issued FASB Staff Position FAS 157-4, Determining Fair Value When the Volume and Level of Activity for the Asset or Liability Have Significantly Decreased and Identifying Transactions That Are Not Orderly (“FSP FAS 157-4”). FSP FAS 157-4 amends SFAS 157 and provides additional guidance for estimating fair value in accordance with SFAS 157 when the volume and level of activity for the asset or liability have significantly decreased and also includes guidance on identifying circumstances that indicate a transaction is not orderly for fair value measurements. This FSP shall be applied prospectively with retrospective application not permitted. This FSP shall be effective for interim and annual periods ending after June 15, 2009, with early adoption permitted for periods ending after March 15, 2009. An entity early adopting this FSP must also early adopt FSP FAS 115-2 and FAS 124-2, Recognition and Presentation of Other-Than-Temporary Impairments (“FSP FAS 115-2” and “FAS 124-2”). Additionally, if an entity elects to early adopt either FSP FAS 107-1 and APB 28-1, Interim Disclosures about Fair Value of Financial Instruments (“FSP FAS 107-1” and “APB 28-1”) or FSP FAS 115-2 and FAS 124-2, it must also elect to early adopt this FSP. We are currently evaluating this new FSP but do not believe that it will have a significant impact on the determination or reporting of our financial results.

 

In April 2009, the Financial Accounting Standards Board (“FASB”) issued FASB Staff Position FAS 115-2 and FAS 124-2. This FSP amends SFAS 115, Accounting for Certain Investments in Debt and Equity Securities,  SFAS 124, Accounting for Certain Investments Held by Not-for-Profit Organizations, and EITF Issue No. 99-20, Recognition of Interest Income and Impairment on Purchased Beneficial Interests and Beneficial Interests That Continue to Be Held by a Transferor in Securitized Financial Assets, to make the other-than-temporary impairments guidance more operational and to improve the presentation of other-than-temporary impairments in the financial statements. This FSP will replace the existing requirement that the entity’s management assert it has both the intent and ability to hold an impaired debt security until recovery with a requirement that management assert it does not have the intent to sell the security, and it is more likely than not it will not have to sell the security before recovery of its cost basis. This FSP provides increased disclosure about the credit and noncredit components of impaired debt securities that are not expected to be sold and also requires increased and more frequent disclosures regarding expected cash flows, credit losses, and an aging of securities with unrealized losses. Although this FSP does not result in a change in the carrying amount of debt securities, it does require that the portion of an other-than-temporary impairment not related to a credit loss for a held-to-maturity security be recognized in a new category of other comprehensive income and be amortized over the remaining life of the debt security as an increase in the carrying value of the security. This FSP shall be effective for interim and annual periods ending after June 15, 2009, with early adoption permitted for periods ending after March 15, 2009. An entity may early adopt this FSP only if it also elects to early adopt FSP FAS 157-4. Also, if an entity elects to early adopt either FSP FAS 157-4 or FSP FAS 107-1 and APB 28-1, the entity also is required to early adopt this FSP. We are currently evaluating this new FSP but do not believe that it will have a significant impact on the determination or reporting of our financial results.

 

In April 2009, the Financial Accounting Standards Board (“FASB”) issued FASB Staff Position FAS 107-1 and APB 28-1. This FSP amends SFAS No. 107, Disclosures about Fair Value of Financial Instruments, to require disclosures about fair value of financial instruments not measured on the balance sheet at fair value in interim financial statements as well as in annual financial statements. Prior to this FSP, fair values for these assets and liabilities were only disclosed annually. This FSP applies to all financial instruments within the scope of SFAS 107 and requires all entities to disclose the method(s) and significant assumptions used to estimate the fair value of financial instruments. This FSP shall be effective for interim periods ending after June 15, 2009, with early adoption permitted for periods ending after March 15, 2009. An entity may early adopt this FSP only if it also elects to early adopt FSP FAS 157-4 and FSP FAS 115-2 and FAS 124-2. This FSP does not require disclosures for earlier periods presented for comparative purposes at initial adoption. In periods after initial adoption, this FSP requires comparative disclosures only for periods ending after initial adoption. We are currently evaluating the disclosure requirements of this new FSP.

 

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These excerpts taken from the RNOW 10-K filed Mar 6, 2009.

Recently Issued Accounting Standards

 

SFAS 157, Fair Value Measurements, defines fair value, establishes a framework for measuring fair value in GAAP, and enhances disclosures about fair value measurements. This statement applies when other accounting pronouncements require fair value measurements; it does not require new fair value measurements. SFAS 157 is effective for financial statements issued for fiscal years beginning after November 15, 2007, and interim periods within those years. On February 12, 2008, FSP FAS 157-2 was issued delaying the effective date of SFAS No. 157 until fiscal years beginning after November 15, 2008 for nonfinancial assets and liabilities that are not recognized or disclosed at fair value in the financial statements on a recurring basis (at least annually). The adoption of SFAS 157 has not had a material effect on our financial statements.  We do not believe adoption of SFAS 157-2 will have a material effect on our financial statements.

 

The guidance in FASB Statement No. 159, The Fair Value Option for Financial Assets and Financial Liabilities , is effective as of the beginning of an entity’s first fiscal year that begins after November 15, 2007. This statement provides companies with an option to report selected assets and liabilities (principally financial assets and financial liabilities) at fair value. The objective of SFAS 159 is to reduce both the complexity in accounting for financial instruments and the volatility in earnings caused by measuring related assets and liabilities differently. SFAS 159 also establishes presentation and disclosure requirements designed to facilitate comparisons between companies that choose different measurement attributes for similar types of assets and liabilities, and does not eliminate disclosure requirements included in other accounting standards. The adoption of SFAS 159 has not had a material effect on our financial statements.

 

In December 2007, the Financial Accounting Standards Board issued Statement No. 141 (revised 2007), Business Combinations (SFAS 141R). SFAS 141R requires the use of “full fair value” to record all the identifiable assets, liabilities, noncontrolling interests and goodwill acquired in a business combination. SFAS 141R is effective for fiscal years beginning on or after December 15, 2008. The requirements are effective for the Company beginning in the first quarter of fiscal 2009. The adoption of SFAS 141R may have a material effect on our financial statements to the extent the Company pursues future business combinations.

 

In December 2007, the Financial Accounting Standards Board issued Statement No. 160, Noncontrolling Interests in Consolidated Financial Statements (SFAS 160). SFAS 160 requires the noncontrolling interests (minority interests) to be recorded at fair value and reported as a component of equity. SFAS 160 is effective for fiscal years beginning on or after December 15, 2008. The requirements are effective for the Company beginning in the first quarter of fiscal 2009. We do not believe adoption of SFAS 160 will have a material effect on our financial statements.

 

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Recently Issued Accounting Standards



 



SFAS 157, Fair Value Measurements, defines fair
value, establishes a framework for measuring fair value in GAAP, and enhances
disclosures about fair value measurements. This statement applies when other
accounting pronouncements require fair value measurements; it does not require
new fair value measurements. SFAS 157 is effective for financial
statements issued for fiscal years beginning after November 15, 2007, and
interim periods within those years. On February 12, 2008, FSP
FAS 157-2 was issued delaying the effective date of SFAS No. 157
until fiscal years beginning after November 15, 2008 for nonfinancial
assets and liabilities that are not recognized or disclosed at fair value in
the financial statements on a recurring basis (at least annually). The adoption
of SFAS 157 has not had a material effect on our financial
statements.  We do not believe adoption
of SFAS 157-2 will have a material effect on our financial statements.



 



The guidance in FASB
Statement No. 159, The Fair Value
Option for Financial Assets and Financial Liabilities
, is effective
as of the beginning of an entity’s first fiscal year that begins after November 15,
2007. This statement provides companies with an option to report selected
assets and liabilities (principally financial assets and financial liabilities)
at fair value. The objective of SFAS 159 is to reduce both the complexity
in accounting for financial instruments and the volatility in earnings caused
by measuring related assets and liabilities differently. SFAS 159 also
establishes presentation and disclosure requirements designed to facilitate
comparisons between companies that choose different measurement attributes for
similar types of assets and liabilities, and does not eliminate disclosure
requirements included in other accounting standards. The adoption of
SFAS 159 has not had a material effect on our financial statements.



 



In December 2007, the
Financial Accounting Standards Board issued Statement No. 141 (revised
2007), Business Combinations
(SFAS 141R). SFAS 141R requires the use of “full fair value” to
record all the identifiable assets, liabilities, noncontrolling interests and
goodwill acquired in a business combination. SFAS 141R is effective for
fiscal years beginning on or after December 15, 2008. The requirements are
effective for the Company beginning in the first quarter of fiscal 2009. The
adoption of SFAS 141R may have a material effect on our financial
statements to the extent the Company pursues future business combinations.



 



In December 2007, the
Financial Accounting Standards Board issued Statement No. 160, Noncontrolling Interests in Consolidated Financial
Statements
(SFAS 160). SFAS 160 requires the
noncontrolling interests (minority interests) to be recorded at fair value and
reported as a component of equity. SFAS 160 is effective for fiscal years
beginning on or after December 15, 2008. The requirements are effective
for the Company beginning in the first quarter of fiscal 2009. We do not
believe adoption of SFAS 160 will have a material effect on our financial
statements.



 



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This excerpt taken from the RNOW 10-Q filed Nov 7, 2008.

Recently Issued Accounting Standards

 

In December 2007, the Financial Accounting Standards Board issued Statement No. 141 (revised 2007), Business Combinations (SFAS 141R). SFAS 141R requires the use of “full fair value” to record all the identifiable assets, liabilities, noncontrolling interests and goodwill acquired in a business combination. SFAS 141R is effective for fiscal years beginning on or after December 15, 2008. The requirements are effective for us beginning in the first quarter of 2009. We do not believe adoption of SFAS 141R will have a material effect on our financial statements.

 

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Table of Contents

 

In December 2007, the Financial Accounting Standards Board issued Statement No. 160, Noncontrolling Interests in Consolidated Financial Statements (SFAS 160). SFAS 160 requires the noncontrolling interests (minority interests) to be recorded at fair value and reported as a component of equity. SFAS 160 is effective for fiscal years beginning on or after December 15, 2008. The requirements are effective for us beginning in the first quarter of 2009. We do not believe adoption of SFAS 160 will have a material effect on our financial statements.

 

In May 2008, the Financial Accounting Standards Board issued Statement No. 162, The Hierarchy of Generally Accepted Accounting Principles (SFAS 162).  SFAS 162 identifies the sources of accounting principles and the framework for selecting the principles used in the preparation of financial statements of nongovernmental entities that are presented in conformity with generally accepted accounting principles (the GAAP hierarchy).  SFAS 162 will become effective 60 days following SEC approval of the Public Company Accounting Oversight Board amendments to AU Section 411, “The Meaning of Present Fairly in Conformity with Generally Accepted Accounting Principles.”  We do not believe adoption of SFAS 160 will have a material effect on our financial statements.

 

This excerpt taken from the RNOW 10-Q filed Aug 8, 2008.

Recently Issued Accounting Standards

 

In December 2007, the Financial Accounting Standards Board issued Statement No. 141 (revised 2007), Business Combinations (SFAS 141R). SFAS 141R requires the use of “full fair value” to record all the identifiable assets, liabilities, noncontrolling interests and goodwill acquired in a business combination. SFAS 141R is effective for fiscal years beginning on or after December 15, 2008. The requirements are effective for us beginning in the first quarter of 2009. We do not believe adoption of SFAS 141R will have a material effect on our financial statements.

 

In December 2007, the Financial Accounting Standards Board issued Statement No. 160, Noncontrolling Interests in Consolidated Financial Statements (SFAS 160). SFAS 160 requires the noncontrolling interests (minority interests) to be recorded at fair value and reported as a component of equity. SFAS 160 is effective for fiscal years beginning on or after December 15, 2008. The requirements are effective for us beginning in the first quarter of 2009. We do not believe adoption of SFAS 160 will have a material effect on our financial statements.

 

In May 2008, the Financial Accounting Standards Board issued Statement No. 162, The Hierarchy of Generally Accepted Accounting Principles (SFAS 162).  SFAS 162 identifies the sources of accounting principles and the framework for selecting the principles used in the preparation of financial statements of nongovernmental entities that are presented in conformity with generally accepted accounting principles (the GAAP hierarchy).  SFAS 162 will become effective 60 days following SEC approval of the Public Company Accounting Oversight Board amendments to AU Section 411, “The Meaning of Present Fairly in Conformity with Generally Accepted Accounting Principles.”  We do not believe adoption of SFAS 160 will have a material effect on our financial statements.

 

This excerpt taken from the RNOW 10-Q filed May 9, 2008.

Recently Issued Accounting Standards

 

Effective January 1, 2008, the Company adopted SFAS No. 159, The Fair Value Option for Financial Assets and Financial Liabilities (SFAS 159). SFAS 159 allows an entity the irrevocable option to elect fair value for the initial and subsequent measurement for specified financial assets and liabilities on a contract-by-contract basis. The Company did not elect to adopt the fair value option under this statement for any items that are not already required to be measured at fair value in accordance with U.S. generally accepted accounting procedures.

 

In December 2007, the Financial Accounting Standards Board issued Statement No. 141 (revised 2007), Business Combinations (SFAS 141R). SFAS 141R requires the use of “full fair value” to record all the identifiable assets, liabilities, noncontrolling interests and goodwill acquired in a business combination. SFAS 141R is effective for fiscal years beginning on or after December 15, 2008. The requirements are effective for the Company beginning in the first quarter of fiscal 2009. We do not believe adoption of SFAS 141R will have a material effect on our financial statements.

 

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In December 2007, the Financial Accounting Standards Board issued Statement No. 160, Noncontrolling Interests in Consolidated Financial Statements (SFAS 160). SFAS 160 requires the noncontrolling interests (minority interests) to be recorded at fair value and reported as a component of equity. SFAS 160 is effective for fiscal years beginning on or after December 15, 2008. The requirements are effective for the Company beginning in the first quarter of fiscal 2009. We do not believe adoption of SFAS 160 will have a material effect on our financial statements.

 

These excerpts taken from the RNOW 10-K filed Mar 14, 2008.

Recently Issued Accounting Standards

        SFAS 157, Fair Value Measurements, defines fair value, establishes a framework for measuring fair value in GAAP, and enhances disclosures about fair value measurements. This statement applies when other accounting pronouncements require fair value measurements; it does not require new fair value measurements. SFAS 157 is effective for financial statements issued for fiscal years beginning after November 15, 2007, and interim periods within those years. On February 12, 2008, FSP FAS 157-2 was issued delaying the effective date of SFAS No. 157 until fiscal years beginning after November 15, 2008 for nonfinancial assets and liabilities that are not recognized or disclosed at fair value in the financial statements on a recurring basis (at least annually). We do not believe adoption of SFAS 157 will have a material effect on our financial statements.

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        The guidance in FASB Statement No. 159, The Fair Value Option for Financial Assets and Financial Liabilities, is effective as of the beginning of an entity's first fiscal year that begins after November 15, 2007. This statement provides companies with an option to report selected assets and liabilities (principally financial assets and financial liabilities) at fair value. The objective of SFAS 159 is to reduce both the complexity in accounting for financial instruments and the volatility in earnings caused by measuring related assets and liabilities differently. SFAS 159 also establishes presentation and disclosure requirements designed to facilitate comparisons between companies that choose different measurement attributes for similar types of assets and liabilities, and does not eliminate disclosure requirements included in other accounting standards. We do not believe adoption of SFAS 159 will have a material effect on our financial statements.

        In December 2007, the Financial Accounting Standards Board issued Statement No. 141 (revised 2007), Business Combinations (SFAS 141R). SFAS 141R requires the use of "full fair value" to record all the identifiable assets, liabilities, noncontrolling interests and goodwill acquired in a business combination. SFAS 141R is effective for fiscal years beginning on or after December 15, 2008. The requirements are effective for the Company beginning in the first quarter of fiscal 2009. We do not believe adoption of SFAS 141R will have a material effect on our financial statements.

        In December 2007, the Financial Accounting Standards Board issued Statement No. 160, Noncontrolling Interests in Consolidated Financial Statements (SFAS 160). SFAS 160 requires the noncontrolling interests (minority interests) to be recorded at fair value and reported as a component of equity. SFAS 160 is effective for fiscal years beginning on or after December 15, 2008. The requirements are effective for the Company beginning in the first quarter of fiscal 2009. We do not believe adoption of SFAS 160 will have a material effect on our financial statements.

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Recently Issued Accounting Standards



        SFAS 157, Fair Value Measurements, defines fair value, establishes a framework for measuring fair value in
GAAP, and enhances disclosures about fair value measurements. This statement applies when other accounting pronouncements require fair value measurements; it does not require new fair value
measurements. SFAS 157 is effective for financial statements issued for fiscal years beginning after November 15, 2007, and interim periods within those years. On February 12,
2008, FSP FAS 157-2 was issued delaying the effective date of SFAS No. 157 until fiscal years beginning after November 15, 2008 for nonfinancial assets and liabilities
that are not recognized or disclosed at fair value in the financial statements on a recurring basis (at least annually). We do not believe adoption of SFAS 157 will have a material effect on
our financial statements.



32









        The
guidance in FASB Statement No. 159,
The Fair Value Option for Financial Assets and Financial Liabilities, is effective as of
the beginning of an entity's first fiscal year that begins after November 15, 2007. This statement provides companies with an option to report selected assets and liabilities (principally
financial assets and financial liabilities) at fair value. The objective of SFAS 159 is to reduce both the complexity in accounting for financial instruments and the volatility in earnings
caused by measuring related assets and liabilities differently. SFAS 159 also establishes presentation and disclosure requirements designed to facilitate comparisons between companies that
choose different measurement attributes for similar types of assets and liabilities, and does not eliminate disclosure requirements included in other accounting standards. We do not believe adoption
of SFAS 159 will have a material effect on our financial statements.



        In
December 2007, the Financial Accounting Standards Board issued Statement No. 141 (revised 2007),
Business Combinations
(SFAS 141R). SFAS 141R requires the use of "full fair value" to record all the identifiable assets, liabilities, noncontrolling interests and goodwill acquired in a business combination.
SFAS 141R is effective for fiscal years beginning on or after December 15, 2008. The requirements are effective for the Company beginning in the first quarter of fiscal 2009. We do not
believe adoption of SFAS 141R will have a material effect on our financial statements.



        In
December 2007, the Financial Accounting Standards Board issued Statement No. 160,
Noncontrolling Interests in Consolidated Financial
Statements
(SFAS 160). SFAS 160 requires the noncontrolling interests (minority interests) to be recorded at fair value and reported as a component of equity.
SFAS 160 is effective for fiscal years beginning on or after December 15, 2008. The requirements are effective for the Company beginning in the first quarter of fiscal 2009. We do not
believe adoption of SFAS 160 will have a material effect on our financial statements.



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This excerpt taken from the RNOW 10-Q filed Aug 9, 2007.

Recently Issued Accounting Standards

SFAS 157, Fair Value Measurements, defines fair value, establishes a framework for measuring fair value in GAAP, and enhances disclosures about fair value measurements.  This statement applies when other accounting pronouncements require fair value measurements; it does not require new fair value measurements.  SFAS 157 is effective for financial statements issued for fiscal years beginning after November 15, 2007, and interim periods within those years.  We do not believe adoption of SFAS 157 will have a material effect on our financial statements.

This excerpt taken from the RNOW 10-Q filed May 8, 2007.

Recently Issued Accounting Standards

SFAS 157, Fair Value Measurements, defines fair value, establishes a framework for measuring fair value in GAAP, and enhances disclosures about fair value measurements.  This statement applies when other accounting pronouncements require fair value measurements; it does not require new fair value measurements.  SFAS 157 is effective for financial statements issued for fiscal years beginning after November 15, 2007, and interim periods within those years.  We do not believe adoption of SFAS 157 will have a material effect on our financial statements.

We adopted the Financial Accounting Standard Board’s Interpretation No. 48, Accounting for Income Tax Uncertainties (“FIN 48”), on January 1, 2007.  FIN 48 clarifies the accounting for uncertain income tax positions recognized in financial statements and requires the impact of a tax position to be recognized in the financial statements if that position is more likely than not of being sustained by the taxing authority.  As of December 31, 2006 and March 31, 2007, we had an insignificant amount of unrecognized tax benefits, none of which would materially affect our effective tax rate if recognized.  We do not expect that the amount of unrecognized tax benefits will significantly increase or decrease within the next twelve months.  Our policy is to recognize interest and penalties on unrecognized tax benefits in provision for income taxes in the consolidated statements of operations.  The amount of interest and penalties for the three months ended March 31, 2007 was insignificant.  Tax years beginning in 2003 are subject to examination by taxing authorities, although net operating loss and credit carryforwards from all years are subject to examinations and adjustments for at least three years following the year in which the attributes are used.

This excerpt taken from the RNOW 10-K filed Mar 14, 2007.

Recently Issued Accounting Standards

In March 2006, the Emerging Issues Task Force issued EITF No. 06-03, How Taxes Collected and Remitted to Government Authorities Should be Presented in Income Statement (That is, Gross versus Net Presentation). The issue addresses how nondiscretionary amounts assessed by government authorities in connection with a transaction with a customer, such as sales, use, value added, and some excise taxes, should be presented in the financial statements. The conclusion is that the presentation of taxes within the scope of this issue on either a gross (included in revenues and costs) or net (excluded from revenues) basis is an accounting policy decision. The Company’s policy is to present revenue on a net basis.

SFAS 157, Fair Value Measurements, defines fair value, establishes a framework for measuring fair value in GAAP, and enhances disclosures about fair value measurements. This statement applies when other accounting pronouncements require fair value measurements; it does not require new fair value measurements. SFAS 157 is effective for financial statements issued for fiscal years beginning after November 15, 2007, and interim periods within those years. We do not believe adoption of SFAS 157 will have a material effect on our financial statements.

In July 2006, the Financial Accounting Standard Board issued FASB Interpretation 48, Accounting for Income Tax Uncertainties (“FIN 48”). FIN 48 defines the threshold for recognizing the benefits of tax return positions in the financial statements as “more-likely-than-not” to be sustained by the taxing authority. The recently issued literature also provides guidance on the derecognition, measurement and classification of income tax uncertainties, along with any related interest and penalties. FIN 48 also includes guidance concerning accounting for income tax uncertainties in interim periods and increases the level of disclosures associated with any recorded income tax uncertainties. FIN 48 is effective for fiscal years beginning after December 15, 2006. The differences between the amounts recognized in the statements of financial position prior to the adoption of FIN 48 and the amounts reported after adoption will be accounted for as a cumulative-effect adjustment recorded to the beginning balance of retained earnings. We believe there will be no material impact to our consolidated financial position or results of operations upon adoption of FIN 48.

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This excerpt taken from the RNOW 10-Q filed Nov 9, 2006.

Recently Issued Accounting Standards

In February 2006, the Financial Accounting Standards Board (“FASB”) issued Statement of Financial Accounting Standards (“SFAS”) No. 155, Accounting for Certain Hybrid Instruments, which amends SFAS 133, Accounting for Derivative Instruments and Hedging Activities, and SFAS 140, Accounting for Transfers and Servicing of Financial Assets and Extinguishment of Debt.  The new standard allows an entity to remeasure at fair value a hybrid financial instrument that contains an embedded derivative that otherwise would require bifurcation from the host, if the holder irrevocably elects to account for the whole instrument on a fair value basis.  Subsequent changes in the fair value of the instrument would be recognized in earnings.  SFAS 155 is effective for all financial instruments acquired or issued after the beginning of an entity’s first fiscal year that begins after September 15, 2006.  We do not believe the adoption of SFAS 155 will have a material effect on our financial statements.

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SFAS 156, Accounting for Servicing of Financial Asset, amends SFAS 140 to address the recognition and measurement of separately recognized servicing assets and liabilities and to simplify efforts to obtain hedge-like (offset) accounting.  SFAS 156 is effective as of the beginning of the first fiscal year that begins after September 15, 2006, with earlier adoption permitted as of the beginning of an entity’s fiscal year, provided the entity has not yet issued interim financial statements for that fiscal year.  We do not believe adoption of SFAS 156 will have a material effect on our financial statements.

SFAS 157, Fair Value Measurements, defines fair value, establishes a framework for measuring fair value in GAAP, and enhances disclosures about fair value measurements.  This statement applies when other accounting pronouncements require fair value measurements; it does not require new fair value measurements.  SFAS 157 is effective for financial statements issued for fiscal years beginning after November 15, 2007, and interim periods within those years.  We do not believe adoption of SFAS 157 will have a material effect on our financial statements.

SFAS 158, Employers’ Accounting for Defined Benefit Pension and Other Postretirement Plans – an amendment of FASB Statements No. 87, 88,, 106 and 132(R), requires an employer to recognize in its statement of financial position the overfunded our underfunded status of a defined benefit postretirement plan measured as the difference between the fair value of plan assets and the benefit obligation.  Employers must also recognize as a component of other comprehensive income, net of tax, the actuarial gains and losses and the prior service costs and credits that arise during the period.  SFAS 158 is effective for public entities for fiscal years ending after December 15, 2006.  We do not believe the adoption of SFAS 158 will have a material effect on our financial statements.

In July 2006, the Financial Accounting Standard Board issued FASB Interpretation 48, Accounting for Income Tax Uncertainties (“FIN 48”).  FIN 48 defines the threshold for recognizing the benefits of tax return positions in the financial statements as “more-likely-than-not” to be sustained by the taxing authority.  The recently issued literature also provides guidance on the derecognition, measurement and classification of income tax uncertainties, along with any related interest and penalties.  FIN 48 also includes guidance concerning accounting for income tax uncertainties in interim periods and increases the level of disclosures associated with any recorded income tax uncertainties.  FIN 48 is effective for fiscal years beginning after December 15, 2006.  The differences between the amounts recognized in the statements of financial position prior to the adoption of FIN 48 and the amounts reported after adoption will be accounted for as a cumulative-effect adjustment recorded to the beginning balance of retained earnings.  The Company is currently assessing the potential impact of FIN 48 on its consolidated financial position and results of operations.

The Securities and Exchange Commission recently issued Staff Accounting Bulletin No. 108, Considering the Effects of Prior Year Misstatements when Quantifying Misstatements in Current Year Financial Statements, which addresses how uncorrected errors in previous years should be considered when quantifying errors in current-year financial statements.  The bulletin requires registrants to consider the effect of all carry over and reversing effects of prior-year misstatements when quantifying errors in current-year financial statements, and allows registrants to record the effects of adopting the guidance as a cumulative-effect adjustment to retained earnings.  Such an adjustment must be reported as of the beginning of the first fiscal year ending after November 15, 2006.  The bulletin does not change the SEC staff’s previous guidance on evaluating the materiality of errors.  The Company believes the adoption of the guidance will not have a material effect on its financial condition.

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This excerpt taken from the RNOW 10-Q filed Aug 9, 2006.

Recently Issued Accounting Standards

In February 2006, the Financial Accounting Standards Board (“FASB”) issued Statement of Financial Accounting Standards (“SFAS”) No. 155, Accounting for Certain Hybrid Instruments, which amends SFAS 133, Accounting for Derivative Instruments and Hedging Activities, and SFAS 140, Accounting for Transfers and Servicing of Financial Assets and Extinguishment of Debt.  The new standard allows an entity to remeasure at fair value a hybrid financial instrument that contains an embedded derivative that otherwise would require bifurcation from the host, if the holder irrevocably elects to account for the whole instrument on a fair value basis.  Subsequent changes in the fair value of the instrument would be recognized in earnings.  SFAS 155 is effective for all financial instruments acquired or issued after the beginning of an entity’s first fiscal year that begins after September 15, 2006.  We do not believe the adoption of SFAS 155 will have a material effect on our financial statements.

SFAS 156, Accounting for Servicing of Financial Asset, amends SFAS 140 to address the recognition and measurement of separately recognized servicing assets and liabilities and to simplify efforts to obtain hedge-like (offset) accounting.  SFAS 156 is effective as of the beginning of the first fiscal year

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that begins after September 15, 2006, with earlier adoption permitted as of the beginning of an entity’s fiscal year, provided the entity has not yet issued interim financial statements for that fiscal year.  We do not believe adoption of SFAS 156 will have a material effect on our financial statements.

In July 2006, the Financial Accounting Standard Board issued FASB Interpretation 48, Accounting for Income Tax Uncertainties (“FIN 48”).  FIN 48 defines the threshold for recognizing the benefits of tax return positions in the financial statements as “more-likely-than-not” to be sustained by the taxing authority.  The recently issued literature also provides guidance on the derecognition, measurement and classification of income tax uncertainties, along with any related interest and penalties.  FIN 48 also includes guidance concerning accounting for income tax uncertainties in interim periods and increases the level of disclosures associated with any recorded income tax uncertainties.  FIN 48 is effective for fiscal years beginning after December 15, 2006.  The differences between the amounts recognized in the statements of financial position prior to the adoption of FIN 48 and the amounts reported after adoption will be accounted for as a cumulative-effect adjustment recorded to the beginning balance of retained earnings.  The Company is currently assessing the potential impact of FIN 48 on its consolidated financial position and results of operations.

In March 2006, the Emerging Issues Task Force issued EITF No. 06-3, How Taxes Collected from Customers and Remitted to Government Authorities Should be Presented in the Income Statement (That is, Gross versus Net Presentation).  The issue addresses how nondiscretionary amounts assessed by governmental authorities in connection with a transaction with a customer, such as sales, use, value added, and some excise taxes, should be presented in the financial statements.  The tentative conclusion is that the presentation of taxes within the scope of this issue on either a gross (included in revenues and costs) or net (excluded from revenues) basis is an accounting policy decision.  The Company’s policy is to present revenue on a net basis.  

This excerpt taken from the RNOW 10-Q filed May 10, 2006.

Recently Issued Accounting Standards

 

In February 2006, the Financial Accounting Standards Board issued Statement of Financial Accounting Standards (“SFAS”) No. 155, Accounting for Certain Hybrid Instruments, which amends SFAS 133, Accounting for Derivative Instruments and Hedging Activities, and SFAS 140, Accounting for Transfers and Servicing of Financial Assets and Extinguishment of Debt. The new standard allows financial instruments that have embedded derivatives to be accounted for as a whole, thereby eliminating the need to bifurcate the derivative from the host instrument, if the holder elects to account for the whole instrument on a fair value basis. The new standard also clarifies certain items that are not subject to SFAS

 

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133, establishes a requirement to evaluate interests in securitized financial assets to identify interests that are freestanding derivatives or that are hybrid financial instruments that contain an embedded derivative requiring bifurcation, clarifies that concentrations of credit risk in the form of subordination are not embedded derivatives, and amends SFAS 140 to eliminate the prohibition on a qualifying special-purpose entity from holding a derivative financial instrument that pertains to a beneficial interest other than another derivative financial instrument. SFAS 155 is effective for all financial instruments acquired or issued after the beginning of an entity’s first fiscal year that begins after September 15, 2006. We do not believe the adoption of SFAS 155 will have a material effect on our financial statements.

 

This excerpt taken from the RNOW 10-K filed Mar 15, 2006.
Recently Issued Accounting Standards

In December 2004, the Financial Accounting Standards Board (“FASB”) issued Statement of Financial Accounting Standards No. 123 (revised 2004) (“SFAS 123R”), Share-Based Payment, which replaces SFAS 123 and supersedes Accounting Principles Board Opinion No. 25. Public companies are required to apply 123R as of the first annual reporting period that begins after June 15, 2005. 123R covers a wide range of share-based compensation, including share options, restricted share plans, performance-based awards, share appreciation rights, and employee share purchase plans. The statement requires the recognition of compensation cost related to share-based payment plans to be recognized in financial statements based on the grant date fair value of the equity or liability instruments issued. We expect adoption of the provisions of 123R on January 1, 2006 will materially and adversely affect our reported results of operations because the stock-based compensation expense will be charged directly against our reported earnings. We do not expect the accounting change to materially affect our liquidity because equity-based compensation is a non-cash expense.

In December 2004, the FASB issued Statement of Financial Accounting Standards No 153, Exchanges of Non-monetary Assets (“SFAS 153”), an amendment of APB Opinion No. 29. SFAS 153 eliminates the exception for non-monetary exchanges of similar productive assets and replaces it with a general exception for exchanges of non-monetary assets that do not have commercial substance. SFAS 153 is effective for non-monetary asset exchanges beginning in our first quarter of 2006. We do not believe the adoption of SFAS 153 will have a material effect on our financial statements.

In May 2005, the FASB issued SFAS No 154, Accounting for Changes and Error Corrections (“SFAS 154”), effective for fiscal years beginning after December 15, 2005. This statement replaces APB Opinion No. 20, Accounting Changes, and SFAS No. 3, Reporting Accounting Changes in Interim Financial Statements, and changes the requirements for the accounting for and reporting of a change in accounting principle. SFAS No. 154 applies to all voluntary changes in accounting principle and changes required by an accounting pronouncement in the unusual instance that the pronouncement does not include specific transition guidance. Under SFAS 154, changes are required to be retrospectively applied to prior financial statements unless it is impractical to quantify the historical effect of the change. We do not believe the adoption of SFAS 154 will have a material effect on our financial statements.

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This excerpt taken from the RNOW 10-Q filed Nov 8, 2005.

Recently Issued Accounting Standards

 

In December 2004, the Financial Accounting Standards Board issued Statement of Financial Accounting Standards No. 123R (“SFAS 123R”), Share-Based Payment, which replaces SFAS 123 and supercedes APB No. 25.  The statement’s effective date was amended in April 2005 to apply to certain public companies beginning with their first fiscal year beginning after June 15, 2005.  SFAS 123R covers a wide range of share-based compensation, including share options, restricted share plans, performance-based awards, share appreciation rights, and employee share purchase plans.  The statement requires the recognition of compensation cost related to share-based payment plans to be recognized in financial statements based on the fair value of the equity or liability instruments issued.  We expect that adoption of the provisions of SFAS 123R beginning January 1, 2006 will materially and adversely affect our reported results of operations because the stock-based compensation expense will be charged directly against reported earnings.  We do not expect the accounting change to materially affect our liquidity because stock-based compensation is a non-cash expense.

 

This excerpt taken from the RNOW 10-Q filed Aug 9, 2005.

Recently Issued Accounting Standards

 

In December 2004, the Financial Accounting Standards Board issued Statement of Financial Accounting Standards No. 123R (“SFAS 123R”), Share-Based Payment, which replaces SFAS 123 and supercedes APB No. 25.  The statement’s effective date was amended in April 2005 to apply to certain public companies beginning with their first fiscal year beginning after June 15, 2005.  SFAS 123R covers a wide range of share-based compensation, including share options, restricted share plans, performance-based awards, share appreciation rights, and employee share purchase plans.  The statement requires the recognition of compensation cost related to share-based payment plans to be recognized in financial statements based on the fair value of the equity or liability instruments issued.  We expect that adoption of the provisions of SFAS 123R beginning January 1, 2006 will materially and adversely affect our reported results of operations because the stock-based compensation expense will be charged directly against reported earnings.  We do not expect the accounting change to materially affect our liquidity because stock-based compensation is a non-cash expense.

 

This excerpt taken from the RNOW 10-Q filed May 13, 2005.

Recently Issued Accounting Standards

        In December 2004, the Financial Accounting Standards Board issued Statement of Financial Accounting Standards No. 123R ("SFAS 123R"), Share-Based Payment, which replaces SFAS 123 and supercedes APB No. 25. The statement's effective date was amended in April 2005 to apply to certain public companies beginning with their first fiscal year beginning after June 15, 2005. SFAS 123R covers a wide range of share-based compensation, including share options, restricted share plans, performance- based awards, share appreciation rights, and employee share purchase plans. The statement requires the recognition of compensation cost related to share-based payment plans to be recognized in financial statements based on the fair value of the equity or liability instruments issued. We expect that adoption of the provisions of SFAS 123R in our 2006 fiscal year beginning January 1, 2006 will materially and adversely affect our reported results of operations because the stock-based compensation expense will be charged directly against reported earnings. We do not expect the accounting change to materially affect our liquidity because stock-based compensation is a non-cash expense.

This excerpt taken from the RNOW 10-K filed Mar 31, 2005.

Recently Issued Accounting Standards

 

In December 2004, the Financial Accounting Standards Board (“FASB”) issued Statement of Financial Accounting Standards No. 123R (“SFAS 123R”), Share-Based Payment, which replaces SFAS 123 and supersedes Accounting Principles Board Opinion No. 25.  Public companies are required to apply 123R as of the first interim or annual reporting period that begins after June 15, 2005.  123R covers a wide range of share-based compensation, including share options, restricted share plans, performance-based awards, share appreciation rights, and employee share purchase plans.  The statement requires the recognition of compensation cost related to share-based payment plans to be recognized in financial statements based on the fair value of the equity or liability instruments issued.  We expect adoption of the provisions of 123R beginning in our third fiscal quarter ending September 30, 2005 will

 

25



 

materially and adversely affect our reported results of operations because the stock-based compensation expense will be charged directly against our reported earnings. We do not expect the accounting change to materially affect our liquidity because equity-based compensation is a non-cash expense.

 

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