Pottery Barn 2011 Annual Report Download - page 53

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NEW ACCOUNTING PRONOUNCEMENTS
In June 2011, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update
(“ASU”) 2011-05, Comprehensive Income (Topic 220): Presentation of Comprehensive Income. This guidance
revises the manner in which entities present comprehensive income in their financial statements. The new
guidance removes the presentation options in previous guidance and requires entities to report components of
comprehensive income in either (1) a continuous statement of comprehensive income or (2) two separate but
consecutive statements. The new guidance does not change the items that must be reported in other
comprehensive income. This amended guidance is effective for our first quarter of fiscal 2012 and will only
impact the presentation of comprehensive income within our consolidated financial statements.
In September 2011, the FASB issued ASU 2011-08, Intangibles—Goodwill and Other (Topic 350): Testing
Goodwill for Impairment. This guidance is intended to simplify how entities test goodwill for impairment. The
new guidance permits 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 Topic 350, Intangibles-Goodwill and
Other. This amended guidance is effective for us beginning in the first quarter of fiscal 2012. We do not expect
the adoption of this standard to have a material impact on our consolidated financial statements.
39
Form 10-K