Xcel Energy 2009 Annual Report Download - page 106

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Accounting Standards Codification — In June 2009, the FASB issued Topic 105 — Generally Accepted Accounting
Principles Amendments Based on Statement of Financial Accounting Standards No. 168 — The FASB Accounting Standards
Codification and the Hierarchy of Generally Accepted Accounting Principles (Accounting Standards Update (ASU)
No. 2009-01), which updates the FASB ASC to state that the Codification is to be the single source of authoritative
GAAP, other than the guidance put forth by the SEC. All other accounting literature not included in the Codification
is to be considered non-authoritative. The updates to the Codification contained in ASU No. 2009-01 were effective
for interim and annual periods ending after Sept. 15, 2009. Xcel Energy implemented the guidance set forth by ASU
No. 2009-01, recognizing the Codification as the single source of authoritative GAAP, other than the guidance put
forth by the SEC, on July 1, 2009. The implementation did not have a material impact on Xcel Energy’s consolidated
financial statements.
Postretirement Benefit Plans — In December 2008, the FASB issued new guidance on employers’ disclosures about
postretirement benefit plan assets. The guidance amends and expands previous disclosure requirements for plan assets of
a defined benefit pension or other postretirement plan to include investment policies and strategies, major categories of
plan assets, and information regarding fair value measurements. This new guidance was effective for disclosures for fiscal
years ending after Dec. 15, 2009. Xcel Energy implemented the guidance on Jan. 1, 2009, and the implementation did
not have a material impact on its consolidated financial statements. For further discussion and the required disclosures,
see Note 11 to the consolidated financial statements.
Fair Value of Liabilities — In August 2009, the FASB issued Fair Value Measurements and Disclosures (Topic 820) —
Measuring Liabilities at Fair Value (ASU No. 2009-05), which updates the Codification with clarifications for measuring
the fair value of liabilities. The liability-specific guidance includes clarifications and guidelines for using, when available,
the most observable prices in active markets for identical liabilities or similar liabilities, or the prices of identical
liabilities or similar liabilities traded as assets, rather than more complex and less observable valuation techniques and
inputs such as those used in a present value model. The updates to the Codification contained in ASU No. 2009-05
were effective for interim and annual periods beginning after its August, 2009 issuance. Xcel Energy implemented the
guidance on Sept. 1, 2009, and the implementation did not have a material impact on its consolidated financial
statements.
Recently Issued
Consolidation of Variable Interest Entities — In June 2009, the FASB issued new guidance on consolidation of variable
interest entities. The guidance will significantly affect various elements of consolidation under existing accounting
standards, including the determination of whether an entity is a variable interest entity and whether an enterprise is a
variable interest entity’s primary beneficiary. This new guidance is effective for interim and annual periods beginning
after Nov. 15, 2009. Xcel Energy does not expect the implementation of the guidance to have a material impact on its
consolidated financial statements.
Fair Value Measurement Disclosures — In January 2010, the FASB issued Fair Value Measurements and Disclosures
(Topic 820) — Improving Disclosures about Fair Value Measurements (ASU No. 2010-06), which will update the
Codification to require new disclosures for assets and liabilities measured at fair value. The requirements include
expanded disclosure of valuation methodologies for Level 2 and Level 3 fair value measurements, transfers in and out of
Levels 1 and 2, and gross rather than net presentation of certain changes in Level 3 fair value measurements. The
updates to the Codification contained in ASU No. 2010-06 are effective for interim and annual periods beginning after
Dec. 15, 2009, except for requirements related to gross presentation of certain changes in Level 3 fair value
measurements, which are effective for interim and annual periods beginning after Dec. 15, 2010. Xcel Energy does not
expect the implementation of the guidance to have a material impact on its consolidated financial statements.
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