Tecumseh Products 2012 Annual Report Download - page 67

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66
NOTE 18. New Accounting Standards
In August 2012, the Financial Accounting Standards Board (FASB) issued Accounting Standards Update (ASU) No. 2012-03,
Technical Amendments and Corrections to SEC Sections. The update amends the FASB Accounting Standards Codification
(ASC) SEC Sections to ensure consistency with the other sections of the ASC. The principal changes involve revision or
removal of accounting guidance references and other conforming changes; they are not expected to change practice and will
have no material effect on our financial statements.
In October 2012, the Financial Accounting Standards Board (FASB) issued ASU No. 2012-04, Technical Corrections and
Improvements. The update amends the FASB ASC for technical corrections and clarifications. The majority of the amendments
are not expected to change practice, and therefore transition guidance is not provided for those amendments. The amendments
that are subject to transition guidance will be effective for fiscal periods beginning after December 15, 2012. These
amendments are related to the following topics: contracts in an entity's own equity, defined contribution pension plans and
health and welfare benefit plans. Management believes ASU No. 2012-04 will have no material effect on our financial
statements.
In February 2013, the Financial Accounting Standards Board (FASB) issued ASU No. 2013-02, Comprehensive Income:
Reporting of Amounts Reclassified Out of Accumulated Other Comprehensive Income. The update requires entities to present
the effects on the line items of net income of significant amounts reclassified out of accumulated other comprehensive income,
if the item reclassified is required under U.S. GAAP to be reclassified to net income in its entirety in the same reporting period.
This information can be presented either on the face of the income statement or in the notes to financial statements. The
amendments are effective for reporting periods beginning after December 15, 2012. ASU No. 2013-02 impacts presentation and
disclosure only and management believes it will have no material effect on our financial statements.
NOTE 19. Subsequent Events
We perform review procedures for subsequent events, and determine any necessary disclosures that arise from such evaluation,
up to the date of issuance of our annual and interim reports.
In January 2013, our Chairman of the Board of Directors resigned. As a result of his resignation, we paid $0.2 million to settle
his outstanding DSUs (see Note 10, "Share-Based Compensation Arrangements", for additional information on the DSUs).
In February 2013, a managing director of one of our locations and Management mutually determined that the managing
director will separate his employment with us. A separation package of $1.2 million was negotiated and will be fully expensed
in 2013.
In March 2013, our Executive Vice President, Global Sales, Marketing and Engineering resigned and entered into a General
Release of All Claims with us, under which he will receive $0.1 million in exchange for releasing us from various claims. This
payment will be fully expensed in 2013.