Xcel Energy 2009 Annual Report Download - page 79

Noncontrolling Interests — Also in December 2007, the FASB issued new guidance on noncontrolling interests in
consolidated financial statements which establishes accounting and reporting standards that require the ownership
interest in subsidiaries held by parties other than the parent be clearly identified and presented in the consolidated
balance sheets within equity, but separate from the parent’s equity; the amount of consolidated net income attributable
to the parent and the noncontrolling interest be clearly identified and presented on the face of the consolidated
statement of earnings; and changes in a parent’s ownership interest while the parent retains its controlling financial
interest in its subsidiary be accounted for consistently as equity transactions. This new guidance was effective for fiscal
years beginning on or after Dec. 15, 2008. Xcel Energy implemented the guidance on Jan. 1, 2009, and the
implementation did not have a material impact on its consolidated financial statements.
Derivatives and Hedging Disclosures — In March 2008, the FASB issued new guidance on disclosures about derivative
instruments and hedging activities which is intended to enhance disclosures to help users of the financial statements
better understand how derivative instruments and hedging activities affect an entity’s financial position, financial
performance and cash flows. The guidance amends and expands previous disclosure requirements for derivative
instruments and hedging activities, including disclosures of objectives and strategies for using derivatives, gains and
losses on derivative instruments, and credit-risk-related contingent features in derivative contracts. This new guidance
was effective for fiscal years and interim periods beginning after Nov. 15, 2008. 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 13 to the consolidated financial statements.
Interim Fair Value Disclosures — In April 2009, the FASB issued new guidance on interim disclosures about fair value
of financial instruments which requires that disclosures regarding the fair value of financial instruments be included in
interim financial statements. This new guidance was effective for interim periods ending after June 15, 2009. Xcel
Energy implemented the guidance on April 1, 2009, and the implementation did not have a material impact on its
consolidated financial statements.
Fair Value in Inactive Markets — Also in April 2009, the FASB issued new guidance for identifying market
transactions that are not orderly and determining fair value when market trading activity has decreased significantly.
The new guidance emphasizes that even if there has been a significant decrease in the volume and level of market
activity for an asset or liability, fair value still represents the exit price in an orderly transaction between market
participants. This new guidance was effective for interim and annual periods ending after June 15, 2009. Xcel Energy
implemented the guidance on April 1, 2009, and the implementation did not have a material impact on its
consolidated financial statements.
Other-Than-Temporary Impairments — Additionally in April 2009, the FASB issued new guidance on recognition and
presentation of other-than-temporary impairments which changes the method for determining whether an
other-than-temporary impairment exists for debt securities, and also requires additional disclosures regarding
other-than-temporary impairments. This new guidance was effective for interim and annual periods ending after
June 15, 2009. Xcel Energy implemented the guidance on April 1, 2009, and the implementation did not have a
material impact on its consolidated financial statements.
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.
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