Incredimail 2011 Annual Report Download - page 110

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PERION NETWORK LTD. AND ITS SUBSIDIARIES
(Formerly: Incredimail Ltd.)
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
U.S. dollars in thousands (except share and per share data)
NOTE 3:
-
SIGNIFICANT ACCOUNTING POLICIES (Cont.)
In addition, uncertain tax positions and tax related valuation allowances assumed in connection with a business combination are initially
estimated as of the acquisition date. The Company reevaluates these items quarterly with any adjustments to preliminary estimates being
recorded to goodwill provided that they are within the measurement period. Subsequent to the measurement period or final determination of the
tax allowance’s or contingency’
s estimated value, whichever comes first, changes to these uncertain tax positions and tax related valuation
allowances will affect provision for income taxes in the consolidated statement of income.
w.
Impact of recently issued Accounting Standards:
In May 2011, the Financial Accounting Standards Board issued guidance that changed the requirement for presenting “
Comprehensive
Income”
in the consolidated financial statements. The update requires an entity to present the components of other comprehensive income
either in a single continuous statement of comprehensive income or in two separate but consecutive statements. The currently available option
to disclose the components of other comprehensive income within the statement of shareholders’
equity will no longer be available. The update
is effective for fiscal years, and interim periods within those years, beginning after December 15, 2011 and should be applied retrospectively.
The adoption of the standard will have no impact on the financial position or results of operations, but will result in a change in the presentation
of the basic consolidated financial statements. The Company is still evaluating whether to present other comprehensive income in a single
continuous statement of comprehensive income or in two separate but consecutive statements.
In September 2011, the FASB amended the guidance on the annual testing of goodwill for impairment. The amended guidance will allow
companies to assess qualitative factors to determine if it is more likely than not that goodwill might be impaired and whether it is necessary to
perform the two-
step goodwill impairment test required under current accounting standards. The guidance is effective for annual and interim
goodwill impairment tests performed for fiscal years beginning after December 15, 2011, with early adoption permitted. The adoption of this
guidance is not expected to have a material impact on the Company's consolidated financial statements.
F
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23