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Table of Contents
NetSpend Holdings, Inc.
Notes to Consolidated Financial Statements (Continued)
December 31, 2011, 2010 and 2009
NOTE 4: RECENT ACCOUNTING PRONOUNCEMENTS
New accounting pronouncements or changes in existing accounting pronouncements may have a significant effect on the results of
operations, financial condition or net worth of the Company's business operations.
In June 2011, the FASB issued amendments to the guidelines on presenting comprehensive income. The amendments require that all
nonowner changes in stockholders' equity be presented either in a single continuous statement of comprehensive income or in two separate but
consecutive statements. The amendments are effective for the first reporting period beginning after December 15, 2011 and are to be applied
retrospectively. The adoption of these amendments is not expected to have a material effect on the Company's consolidated financial
statements.
In September 2011, the FASB issued amendments to the guidelines for testing goodwill for impairment. The amendments permit an entity
to first assess qualitative factors to determine whether it is more likely than not that the fair value of a reporting unit is less than its carrying
amount as a basis for determining whether it is necessary to perform the two-step goodwill impairment test described in the FASB's
Accounting Standards Codification Topic 350. The amendments are effective for the first reporting period beginning after December 15, 2011.
Early adoption is permitted. The Company adopted these amendments for its quarterly and annual reporting periods ending December 31,
2011. The adoption of these amendments did not have a material effect on the Company's consolidated financial statements.
In November 2011, the FASB amended the disclosure requirements for offsetting and related arrangements to enable users of its financial
statements to understand the effect of those arrangements on its financial position. Offsetting, otherwise known as netting, is the presentation of
assets and liabilities as a single net amount in the statement of financial position (balance sheet). An entity is required to apply the amendments
for annual reporting periods beginning on or after January 1, 2013 and for interim periods within those annual periods and should provide the
disclosures required by the amendments retrospectively for all comparative periods presented. The adoption of these amendments is not
expected to have a material effect on the Company's consolidated financial statements.
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