American Home Shield 2009 Annual Report Download - page 89

Table of Contents
Notes to the Consolidated Financial Statements (Continued)
Note 1. Significant Accounting Policies (Continued)
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 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
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