Home Depot 2011 Annual Report Download - page 32

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26
Recent Accounting Pronouncements
In June 2011, the Financial Accounting Standards Board ("FASB") issued Accounting Standards Update No. 2011-05,
"Comprehensive Income (Topic 220): Presentation of Comprehensive Income" ("ASU No. 2011-05"). ASU No. 2011-05
eliminates the current option to report other comprehensive income and its components in the Consolidated Statements of
Stockholders' Equity and Comprehensive Income. Under ASU No. 2011-05, an entity can elect to present items of net
earnings and other comprehensive income in one continuous statement or in two separate, but consecutive, statements. This
guidance is effective for publicly traded companies for annual reporting periods beginning after December 15, 2011 and for
interim and annual reporting periods thereafter, and retrospective application is required. As we report other comprehensive
income within the Consolidated Statements of Stockholders' Equity and Comprehensive Income, the adoption of ASU
No. 2011-05 will impact the presentation of our Consolidated Financial Statements beginning in the first quarter of fiscal
2012.
In June 2009, the FASB issued "Amendments to FASB Interpretation No. 46(R)" ("FASB ASC Subtopic 810-10"), which
clarifies that the determination of whether a company is required to consolidate an entity is based on, among other things, an
entity’s purpose and design and a company’s ability to direct the activities of the entity that most significantly impact the
entity’s economic performance. FASB ASC Subtopic 810-10 requires ongoing reassessments of whether a company is the
primary beneficiary of a variable interest entity and eliminates the qualifying special purpose entity concept. FASB ASC
Subtopic 810-10 also requires additional disclosures about a company’s involvement in variable interest entities and any
significant changes in risk exposure due to that involvement. This guidance was effective for annual reporting periods
beginning after November 15, 2009, for interim periods within that first annual reporting period, and for interim and annual
reporting periods thereafter. This guidance did not have a material impact on our consolidated financial statements.
Item 7A. Quantitative and Qualitative Disclosures About Market Risk.
The information required by this item is incorporated by reference to Item 7, "Management’s Discussion and Analysis of
Financial Condition and Results of Operations" of this report.