Rayovac 2011 Annual Report Download - page 155

SPECTRUM BRANDS HOLDINGS, INC. AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS—(CONTINUED)
(In thousands, except per share amounts)
Revenue Recognition—Multiple-Element Arrangements
In October 2009, the FASB issued new accounting guidance addressing the accounting for multiple-
deliverable arrangements to enable entities to account for products or services (deliverables) separately rather
than as a combined unit. The provisions establish the accounting and reporting guidance for arrangements under
which the entity will perform multiple revenue-generating activities. Specifically, this guidance addresses how to
separate deliverables and how to measure and allocate arrangement consideration to one or more units of
accounting. The Company adopted the new guidance on October 1, 2010 and the adoption did not impact the
Company’s financial statements and related disclosures.
Recently Issued Accounting Guidance
Fair Value Measurement
In May 2011, the FASB issued amended accounting guidance to achieve a consistent definition of and
common requirements for measurement of and disclosure concerning fair value between GAAP and International
Financial Reporting Standards. This amended guidance is effective for the Company beginning in the second
quarter of its fiscal year ending September 30, 2012. The Company is currently evaluating the impact of this new
accounting guidance on its Consolidated Financial Statements.
Presentation of Comprehensive Income
In June 2011, the FASB issued new accounting guidance which requires entities to present net income and
other comprehensive income in either a single continuous statement or in two separate, but consecutive,
statements of net income and other comprehensive income. This accounting guidance is effective for the
Company for the fiscal year beginning October 1, 2012. Early adoption is permitted. The Company is currently
evaluating the impact of this new accounting guidance on its Consolidated Financial Statements.
Testing for Goodwill Impairment
During September 2011, the FASB issued new accounting guidance intended to simplify how an entity tests
goodwill for impairment. The guidance will allow an entity to first assess qualitative factors to determine
whether it is necessary to perform the two-step quantitative goodwill impairment test. An entity no longer will be
required to calculate the fair value of a reporting unit unless the entity determines, based on a qualitative
assessment, that it is more likely than not that its fair value is less than its carrying amount. This accounting
guidance is effective for the Company for the annual and any interim goodwill impairment tests performed for
the fiscal year beginning October 1, 2012. Early adoption is permitted. The Company does not expect the
adoption of this guidance to have a significant impact on its Consolidated Financial Statements.
(18) Subsequent Events
ASC 855, “Subsequent Events,” (“ASC 855”), establishes general standards of accounting and disclosure of
events that occur after the balance sheet date but before financial statements are issued or are available to be
issued. ASC 855 requires the Company to evaluate all subsequent events that occur after the balance sheet date
through the date and time the Company’s financial statements are issued. The Company has evaluated
subsequent events through the date these financial statements were issued.
On November 1, 2011, the Company completed the $43,750 cash acquisition of certain trade name brands
from The Homax Group, Inc., a portfolio company of Olympus Partners. In accordance with ASC 805, the
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