American Home Shield 2009 Annual Report Download - page 66

Table of Contents
In December 2007, the FASB issued guidance under ASC Topic 810, "Consolidation". This standard establishes new accounting and reporting standards
for the noncontrolling interest in a subsidiary and for the deconsolidation of a subsidiary. This Statement is effective for fiscal years beginning after
December 15, 2008 (calendar year 2009) with presentation and disclosure requirements applied retrospectively to comparative financial statements. The
Company adopted the provisions of this standard in the first quarter of 2009. The adoption of this standard did not have a material effect on the Company's
Consolidated Financial Statements.
In March 2008, the FASB issued guidance under ASC Topic 815, "Derivatives and Hedging". This standard requires additional disclosures for derivative
instruments and hedging activities that include how and why an entity uses derivatives, how these instruments and the related hedged items are accounted for
under accounting standards for derivative instruments and related interpretations, and how derivative instruments and related hedged items affect the entity's
financial position, results of operations and cash flows. This statement is effective for financial statements issued for fiscal years and interim periods
beginning after November 15, 2008. The Company adopted this standard in the first quarter of 2009 (See Note 21).
In April 2008, the FASB issued guidance under ASC Topic 350, "General Intangibles Other than Goodwill". This standard amends the factors that
should be considered in developing renewal or extension assumptions used to determine the useful life of a recognized intangible asset. This standard is
effective for financial statements issued for fiscal years beginning after November 15, 2008 (calendar year 2009). The Company adopted this standard in the
first quarter of 2009. The adoption of this standard did not have a material effect on the Company's Consolidated Financial Statements.
In April 2009, the FASB issued guidance under ASC Topic 320, "Investments—Debt and Equity Securities", which changes existing guidance for
determining whether an impairment of debt securities is other than temporary. This standard requires other than temporary impairments to be separated into
the amount representing the decrease in cash flows expected to be collected from a security (referred to as credit losses) which is recognized in earnings and
the amount related to other factors which is recognized in other comprehensive income. This noncredit loss component of the impairment may only be
classified in other comprehensive income if the holder of the security concludes that it does not intend to sell and it is more likely than not that it will not be
required to sell the security before it recovers its value. If these conditions are not met, the noncredit loss must also be recognized in earnings. When adopting
this standard, an entity is required to record a cumulative effect adjustment as of the beginning of the period of adoption to reclassify the noncredit component
of a previously recognized other than temporary impairment from retained earnings to accumulated other comprehensive income. This standard is effective
for interim and annual periods ending after June 15, 2009. The Company adopted this standard during the second quarter of 2009. The adoption of this
standard did not have a material effect on the Company's Consolidated Financial Statements.
In April 2009, the FASB issued guidance under ASC Topic 825, "Financial Instruments". This standard amends accounting guidance related to fair value
disclosures of financial instruments to require disclosures about the fair value of financial instruments in interim financial statements as well as in annual
financial statements. It also amends interim financial reporting accounting guidance to require those disclosures in all interim financial statements. The
Company adopted this standard in the second quarter of 2009 (See Note 21).
In May 2009, the FASB issued guidance under ASC Topic 855, "Subsequent Events", which establishes general standards of accounting for and
disclosure of events that occur after the balance sheet date but before the financial statements are issued or are available to be issued. This standard provides
guidance on the period after the balance sheet date during which management
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