American Home Shield 2009 Annual Report Download - page 67

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of a reporting entity should evaluate events or transactions that may occur for potential recognition or disclosure in the financial statements, the circumstances
under which an entity should recognize events or transactions occurring after the balance sheet date in its financial statements and the disclosures that an
entity should make about events or transactions that occurred after the balance sheet date. The Company adopted this standard during the second quarter of
2009, and its application had no impact on the Company's Consolidated Financial Statements. In January 2010, the FASB issued ASU No. 2010-9,
"Subsequent Events" ("ASU No. 2010-9"). ASU No. 2010-9 eliminated the requirement to disclose the date through which subsequent events have been
evaluated. ASU No. 2010-9 was effective upon issuance. The Company applied the provisions of this standard to these Consolidated Financial Statements and
there was no material effect from that application.
In September 2009, the FASB issued ASU 2009-13, "Multiple-Deliverable Revenue Arrangements", which amends the multiple-element arrangement
guidance under ASC 605, "Revenue Recognition". This standard amends the criteria for separating consideration received for products or services in multiple-
deliverable arrangements. This standard establishes a selling price hierarchy for determining the selling price of a deliverable, eliminates the residual method
of allocation, and requires that total arrangement consideration be allocated at the inception of the arrangement to all deliverables using the relative selling
price method. In addition, this standard significantly expands required disclosures related to a vendor's multiple-deliverable revenue arrangements. This
standard is effective prospectively for revenue arrangements entered into or materially modified in fiscal years beginning on or after June 15, 2010 (calendar
year 2011). The Company is currently evaluating the impact of this standard on its Consolidated Financial Statements.
In December 2009, the FASB issued ASU No. 2009-17, "Accounting by Enterprises Involved with Variable Interest Entities" ("ASU No. 2009-17").
ASU No. 2009-17 formally incorporates into the FASB Codification amendments to FASB Interpretation No. 46(R) made by Statement of Financial
Accounting Standards ("SFAS") No. 167 to require that a comprehensive qualitative analysis be performed to determine whether a holder of variable interests
in a variable interest entity also has a controlling financial interest in that entity. In addition, the amendments require that the same type of analysis be applied
to entities that were previously designated as qualifying special-purpose entities. This standard applies prospectively for fiscal years beginning on or after
November 15, 2009. The Company will apply the provisions of this standard in the first quarter of 2010. The Company does not expect that the adoption of
this standard will have a material effect on its Consolidated Financial Statements.
In January 2010, the FASB issued ASU No. 2010-6, "Fair Value Measurements and Disclosures" ("ASU No. 2010-6"). ASU No. 2010-6 will expand the
level of fair value disclosures by an entity, requiring information to be provided about movements of assets between levels 1 and 2, a reconciliation of
purchases, sales, issuance and settlements for all level 3 instruments and fair value measurement disclosures for each class of assets and liabilities. This
standard is effective for fiscal years beginning after December 15, 2010 (calendar year 2011). The Company is currently evaluating the impact of this standard
on its Consolidated Financial Statements.
Information Regarding Forward-Looking Statements
This report includes forward-looking statements and cautionary statements. Some of the forward-looking statements can be identified by the use of
forward-looking terms such as "believes", "expects", "may", "will", "shall", "should", "would", "could", "seek", "intends", "plans", "estimates", "anticipates"
or other comparable terms. These forward-looking statements include all matters that are not historical facts. They appear in a number of places throughout
this report and include, without limitation, statements regarding our intentions, beliefs or current
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