INTL FCStone 2012 Annual Report Download - page 83
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PART II
ITEM 8 Financial Statements and Supplementary Data
Recent Accounting Pronouncements
In January 2010, new guidance was issued to require new
disclosures and clarify existing disclosure requirements about fair
value measurements as set forth in the Fair Value Measurements
and Disclosures Topic in the ASC. e guidance requires that a
reporting entity should disclose separately the amounts of transfers
in and out of Level 1 and Level 2 fair value measurements and
describe the reasons for the transfers; and in the reconciliation
for fair value measurements using signi cant unobservable
inputs, a reporting entity should present separately information
about purchases, sales, issuances, and settlements. In addition,
the guidance clari es that for purposes of reporting fair value
measurement for each class of assets and liabilities, a reporting
entity needs to use judgment in determining the appropriate classes
of assets and liabilities; and a reporting entity should provide
disclosures about the valuation techniques and inputs used to
measure fair value for both recurring and nonrecurring fair value
measurements. is guidance was e ective for the Company as
of the rst interim period beginning after December 15, 2009,
except for the detailed level 3 roll forward disclosure, which is
e ective for scal years beginning after December15, 2010. e
Company adopted the requirements of the disclosures during
the quarter ended March 31, 2010, except for the detailed level
3 roll forward disclosures. e Company adopted the detailed
level 3 roll forward disclosures beginning with the rst quarter
ended December 31, 2011. e adoption of this guidance did
not have a material impact on the Company’s disclosures in its
consolidated nancial statements.
In May 2011, the Financial Accounting Standards Board (“FASB”)
issued an update to the fair value measurement guidance to achieve
common fair value measurement and disclosure requirements
in U.S. GAAP and International Financial Reporting Standards
(“IFRS”). e amendments in the update change the wording
used to describe many of the requirements in U.S. GAAP for
measuring fair value and for disclosing information about fair
value measurements. e amendment is not intended to result in
a change in the application of the requirements in the Fair Value
Measurements Topic in the ASC. is guidance is e ective for
interim and annual periods beginning after December15, 2011.
e Company adopted this guidance in the second quarter of scal
year 2012. e adoption of this guidance did not have a material
impact on the Company’s consolidated nancial statements.
In June 2011, the FASB issued new guidance on the presentation
of comprehensive income. is guidance eliminates the current
option to report comprehensive income and its components in
the statement of changes in equity. Under this guidance, an entity
can elect to present items of net income and comprehensive
income in one continuous statement or in two separate, but
consecutive, statements. In addition, the guidance requires entities
to show the e ects of items reclassi ed from accumulated other
comprehensive loss to net income on the face of the nancial
statements. is guidance is e ective for scal years beginning after
December15, 2011 and interim and annual periods thereafter.
Early adoption is permitted, but full retrospective application
is required. is guidance is e ective for the Company’s scal
year beginning October 1, 2012 and all interim periods within
that scal year. In December 2011, the FASB issued guidance
that deferred the portion of the original guidance that required a
company to separately present within net income reclassi cation
adjustments of items out of accumulated other comprehensive
loss. e deferral is intended to be temporary until the FASB
has time to reconsider these changes. e other provisions of
the guidance will become e ective as originally planned by the
FASB. e Company is expecting to adopt this guidance in
the rst quarter of scal year 2013. As the Company reports
comprehensive income within its consolidated statements of
stockholders’ equity, the adoption of this guidance will result
in a change in the presentation of comprehensive income in the
Company’s consolidated nancial statements.
In September 2011, the FASB issued amended guidance on
goodwill impairment testing. Under the revised guidance, entities
testing goodwill for impairment have the option of performing
a qualitative assessment, whether it is more likely than not (a
likelihood of more than 50%) that the fair value of a reporting
unit is less than its carrying amount, before calculating the fair
value of the reporting unit. Because the qualitative assessment
is optional, entities may bypass it for any reporting unit in any
period and begin their impairment analysis with the quantitative
calculation in step 1. e guidance does not change how goodwill
is calculated or assigned to reporting units, nor does it revise
the requirement to test goodwill annually for impairment. In
addition, the guidance does not amend the requirement to
test goodwill for impairment between annual tests if events or
circumstances warrant, however, it does revise the examples of
events and circumstances that an entity should consider. e
amended guidance is e ective for annual and interim goodwill
impairment tests performed for scal years beginning after
December 15, 2011. Early adoption is permitted. e Company
adopted this guidance at the beginning of scal year 2012. e
adoption of this guidance did not have a material impact on the
Company’s consolidated nancial statements.
On December 16, 2011, the FASB issued new guidance on the
disclosures about o setting assets and liabilities. While the FASB
retained the existing o setting models under U.S. GAAP, the new
standard requires disclosures to allow investors to better compare
and understand signi cant quantitative di erences in nancial
statements prepared under U.S. GAAP. e new standard is
e ective for annual periods beginning after January 1, 2013,
and interim periods within those annual periods. Retrospective
application is required. is guidance is e ective for the Company’s
scal year beginning October 1, 2013. e Company is expecting
to adopt this guidance starting with the rst quarter of scal
year 2014. e adoption of this guidance is expected to change
some of the Company’s disclosures within the notes to the
consolidated nancial statements.