IHOP 2012 Annual Report Download - page 93

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DineEquity, Inc. and Subsidiaries
Notes to the Consolidated Financial Statements (Continued)
2. Basis of Presentation and Summary of Significant Accounting Policies (Continued)
75
Reclassifications
Amounts previously reported as inventories at December 31, 2011 have been restated to conform to current classifications.
Food and beverage inventories at company restaurants are now included in "other current assets" and inventories of unactivated
gift cards are now included in "prepaid gift cards."
As Originally
Reported As Currently
Reported
(In thousands)
Inventories.......................................................................... $ 12,031 $ —
Prepaid gift cards ............................................................... $ 36,643 $ 45,412
Other current assets............................................................ $ 8,051 $ 11,313
Recently Adopted Accounting Standards
In May 2011, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”)
No. 2011-04, Fair Value Measurement - Amendments to Achieve Common Fair Value Measurement and Disclosure Requirements
in U.S. GAAP and IFRSs (“ASU 2011-04”). The amendments in ASU 2011-04 result in common fair value measurement and
disclosure requirements in U.S. GAAP and international financial reporting standards (“IFRS”). ASU 2011-04 also provides for
certain changes in current GAAP disclosure requirements. The adoption of ASU 2011-04 did not have a material impact on the
Company's consolidated financial statements.
In May 2011, the FASB issued ASU No. 2011-05, Comprehensive Income - Presentation of Comprehensive Income (“ASU
2011-05”). ASU 2011-05 requires the presentation of the total of comprehensive income, the components of net income, and the
components of other comprehensive income either in a single continuous statement of comprehensive income or in two separate
but consecutive statements. The amendments in this update did not change the items that must be reported in other comprehensive
income. The adoption of ASU 2011-05 did not have a material impact on the Company's consolidated financial statements.
In September 2011, the FASB issued ASU No. 2011-08, Intangibles-Goodwill and Other - Testing Goodwill for Impairment
("ASU 2011-08"). The amendments in ASU No. 2011-08 are intended to simplify goodwill impairment testing by adding a
qualitative review step to assess whether the required quantitative impairment analysis that exists today is necessary. Under these
amendments, an entity would not be required to calculate the fair value of a reporting unit unless the entity determines, based on
the qualitative assessment, that it is more likely than not that its fair value is less than its carrying amount. The Company adopted
ASU 2011-08 as of January 1, 2012, but did not elect to utilize the option of qualitative assessment of goodwill impairment. The
adoption of ASU 2011-08 did not have a material impact on the Company's consolidated financial statements.
New Accounting Pronouncements
In July 2012, the FASB issued ASU No. 2012-02, Intangibles - Testing Indefinite Lived Intangibles for Impairment (“ASU
2012-02”). ASU 2012-02 allows an entity the option to first assess qualitative factors to determine whether it is necessary to
perform a quantitative impairment test on indefinite-lived intangibles. An entity electing to perform a qualitative assessment is no
longer required to calculate the fair value of an indefinite-lived intangible asset unless the entity determines, based on the qualitative
assessment, that it is more likely than not that the asset is impaired. The guidance is effective for impairment tests for the Company's
fiscal 2013, however, earlier adoption is allowed. As the guidance does not change the underlying principle that the carrying
amount of an indefinite-lived intangible asset should not exceed its fair value, the adoption of ASU 2012-02 is not anticipated to
have a material impact on the Company's consolidated financial statements.
The Company reviewed all other newly issued accounting pronouncements and concluded that they either are not applicable
to the Company's operations or that no material effect is expected on the Company's financial statements as a result of future
adoption.