FairPoint Communications 2009 Annual Report Download - page 124

Table of Contents
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nongovernmental entities in the preparation of financial statements in conformity with GAAP. Rules and interpretive releases of the SEC under
authority of federal securities laws are also sources of authoritative GAAP for SEC registrants. The adoption of the ASC had no impact on the
Company's consolidated results of operations and financial position.
On January 1, 2009, the Company adopted the accounting standard relating to business combinations. This standard establishes principles and
requirements for how an acquirer in a business combination recognizes and measures in its financial statements the identifiable assets acquired, the
liabilities assumed, and any controlling interest; recognizes and measures the goodwill acquired in the business combination or a gain from a bargain
purchase; and determines what information to disclose to enable users of the financial statements to evaluate the nature and financial effects of the
business combination. This standard is to be applied prospectively to business combinations for which the acquisition date is on or after an entity's fiscal
year that begins after December 15, 2008. The Company will assess the impact of this standard if and when a future acquisition occurs.
On January 1, 2009, the Company adopted the accounting standard relating to disclosures about derivative instruments and hedging activities. This
standard requires companies with derivative instruments to disclose information that should enable financial statement users to understand how and why
a company uses derivative instruments, how derivative instruments and related hedged items are accounted for under the Derivatives and Hedging Topic
of the ASC and how derivative instruments and related hedged items affect a company's financial position, financial performance and cash flows. This
standard is effective for financial statements issued for fiscal years beginning after November 15, 2008. The adoption of this standard had no impact on
the Company's consolidated results of operations and financial position.
On June 15, 2009, the Company adopted the accounting standard relating to interim disclosures about fair value of financial instruments. This
standard extends financial instrument fair value disclosure to interim financial statements of publicly traded companies. This standard is effective for
interim reporting periods ending after June 15, 2009. The adoption of this standard had no impact on the Company's consolidated results of operations
and financial position.
On June 15, 2009, the Company adopted the accounting standard relating to subsequent events. This standard establishes principles and
requirements for identifying, recognizing and disclosing subsequent events. This standard requires that an entity identify the type of subsequent event as
either recognized or unrecognized, and disclose the date through which the entity has evaluated subsequent events. This standard was revised by FASB
Accounting Standard Update 2010-09 to remove the requirement to disclose the date through which subsequent events have been evaluated. This
standard is effective for interim or annual financial periods ending after June 15, 2009. The adoption of this standard had no impact on the Company's
consolidated results of operations and financial position.
On August 28, 2009, the Company adopted the accounting standard update regarding the measurement of liabilities at fair value. This update
clarifies the valuation techniques that should be used to measure liabilities that are carried at fair value on a company's statement of financial position.
This update is effective for interim or annual financial periods beginning after August 28, 2009. The adoption of this update had no impact on the
Company's consolidated results of operations and financial position.
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