FairPoint Communications 2009 Annual Report Download - page 85

Table of Contents
Purchase Accounting. Prior to the adoption of the ASC we recognized the acquisition of companies in accordance with SFAS No. 141,
 ("SFAS 141"). The cost of an acquisition is allocated to the assets acquired and liabilities assumed based on
their fair values as of the close of the acquisition, with amounts exceeding the fair value being recorded as goodwill. All future business combinations
will be recognized in accordance with the Business Combinations Topic of the ASC.
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On July 1, 2009, we adopted the FASB ASC. The FASB has established the ASC as the source of authoritative principles and standards
recognized by the FASB to be applied by 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 our consolidated results of operations and financial position.
On January 1, 2009, we 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. We will assess the impact of this standard if and when a future acquisition occurs.
On January 1, 2009, we 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
our consolidated results of operations and financial position.
On June 15, 2009, we 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 our consolidated results of operations and financial
position.
On June 15, 2009, we 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 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, we 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 our consolidated results
of operations and financial position.
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