FairPoint Communications 2002 Annual Report Download - page 504

2001
Operating revenues $ 2,457,057 $ 2,897,386 $ 2,994,715 $ 2,882,714
Operating income $ 238,467 $ 378,592 $ 402,836 $ 443,462
Net income $ 222,770 $ 357,551 $ 387,483 $ 445,511
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ILLINOIS VALLEY CELLULAR RSA 2-I PARTNERSHIP
NOTES TO FINANCIAL STATEMENTS
NOTE 11. SELECTED QUARTERLY FINANCIAL DATA (UNAUDITED)
Quarterly operating results are not necessarily representative of
operations for a full year for various reasons, including seasonal
variations in customer calling patterns and timing of promotional
activities.
NOTE 12. RECENT ACCOUNTING DEVELOPMENTS
In June 2001, the Financial Accounting Standards Board (FASB) issued
Statement of Financial Accounting Standard (SFAS) No. 143, "Accounting
for Asset Retirement Obligations." SFAS No. 143 requires entities to
record the fair value of the liability for legal obligations
associated with an asset retirement in the period in which the
obligation is incurred. When the liability is initially recorded, the
entity capitalizes the cost of the asset retirement obligation by
increasing the carrying amount of the related long-lived asset. Over
time, the liability is accreted to its present value each period, and
the capitalized cost is depreciated over the useful life of the
related asset.
In April 2002, the FASB issued No. 145, "Rescission of FASB Statements
No.4, 44, and 64, Amendment of FASB Statement No.13, and Technical
Corrections." SFAS No. 145 rescinds FASB Statement No.4, "Reporting
Gains and Losses from Extinguishment of Debt," and an amendment of
that Statement, FASB Statement No.64, "Extinguishments of Debt Made to
Satisfy Sinking-Fund Requirements." SFAS No. 145 also rescinds FASB
Statement No. 44, "Accounting for Intangible Assets of Motor
Carriers," and amends FASB Statement No. 13, "Accounting for Leases."
In June 2002, the FASB issued SFAS No. 146, "Accounting for Costs
Associated with Exit or Disposal Activities," SFAS No. 146 requires
companies to recognize costs associated with exit or disposal
activities when they are incurred rather than at the date of a
commitment to an exit or disposal plan.
In November 2002, the FASB issued Interpretation No. 45, "Guarantor's
Accounting and Disclosure Requirements for Guarantees, Including
Indirect Guarantees of Indebtedness of Others." This interpretation
elaborates on the disclosures required in financial statements
concerning obligations under certain guarantees. It also clarifies the
requirements related to the recognition of liabilities by a guarantor
at the inception of certain guarantees. The disclosure requirements of
this interpretation were effective on December 31, 2002. No
disclosures were required at December 31, 2002.
The Partnership has not yet determined the impact the adoption of
these Standards will have on its financial position, results of
operations, and cash flows.
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