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Notes to Consolidated Financial Statements
Jarden Corporation Annual Report 2010 (Dollars in millions, except per share data and unless otherwise indicated)
2. New Accounting Guidance and Adoption of New Accounting Guidance
New Accounting Guidance
In October 2009, the FASB issued ASU 2009-13, which requires companies to allocate revenue in multiple-element arrangements
based on an element’s estimated selling price if vendor-specific or other third-party evidence of value is not available. ASU 2009-13
is effective for fiscal years beginning on or after June 15, 2010, with earlier application permitted. The Company does not expect
the provisions of ASU 2009-13 to have a material effect on the consolidated financial position, results of operations or cash flows of
the Company.
Adoption of New Accounting Guidance
In January 2010, the FASB issued ASU 2010-06, which requires companies to provide additional disclosures related to transfers in
and out of Level 1 and Level 2 and in the reconciliation of Level 3 fair value measurements. ASU 2010-06 is effective for interim and
annual reporting periods beginning on or after December 15, 2009, except for the disclosures related to the reconciliation of Level
3 fair value measurements, which will be effective for fiscal years beginning on or after December 15, 2010, and for interim periods
within those fiscal years. Since ASU 2010-06 requires only additional disclosures, the adoption of ASU 2010-06 did not affect the
consolidated financial position, results of operations or cash flows of the Company.
In June 2009, the FASB issued authoritative accounting guidance (“Guidance”) that in part, amends derecognition guidance for
transfers of financial assets, eliminates the exemption from consolidation for qualifying special-purpose entities and requires
additional disclosures. This Guidance is effective for financial asset transfers occurring after the beginning of an entity’s first fiscal
year that begins after November 15, 2009. The adoption of the provisions of this Guidance did not have a material impact on the
consolidated financial position, results of operations or cash flows of the Company.
In June 2009, the FASB issued Guidance that amends the consolidation guidance applicable to variable interest entities. The
provisions of this Guidance require entities to perform an analysis to determine whether the enterprise’s variable interest or interests
give it a controlling financial interest in a variable interest entity. The Guidance also requires an enterprise to assess on an ongoing
basis to determine whether it is a primary beneficiary or has an implicit responsibility to ensure that a variable interest entity
operates as designed. This Guidance is effective as of the beginning of the first fiscal year that begins after November 15, 2009 and
will be effective for the Company beginning in 2010. In January 2010, the FASB indefinitely deferred certain consolidation provisions
of this Guidance. The adoption of the provisions of this Guidance did not have a material impact on the consolidated financial
position, results of operations or cash flows of the Company.
In June 2009, the FASB confirmed that the FASB Accounting Standards Codification (the “Codification”) will become the single
official source of authoritative GAAP (other than guidance issued by the SEC) for all non-governmental entities. The Codification,
which changes the referencing of financial standards, supersedes current authoritative guidance and is effective for interim or annual
financial periods ending after September 15, 2009. The Codification is not intended to change or alter existing GAAP and did not
result in a change in accounting practice for the Company.
In May 2009, the FASB issued Guidance that establishes general standards of accounting for and disclosures of subsequent
events that occurred after the balance sheet date but prior to the issuance of financial statements. This Guidance is effective for
financial statements issued for interim or fiscal years ending after September 15, 2009. The adoption of this Guidance, effective
September 30, 2009, did not affect the consolidated financial position, results of operations or cash flows of the Company.
In April 2009, the FASB issued Guidance that requires publicly-traded companies to provide disclosures on the fair value of financial
instruments in interim financial statements. Since this Guidance requires only additional disclosures concerning the financial
instruments, the adoption of this Guidance effective September 30, 2009, did not affect the consolidated financial position, results
of operations or cash flows of the Company.
In December 2008, the FASB issued Guidance that requires expanded fair value disclosures of benefit plan assets (“plan assets”)
on an annual basis. The Company would be required to separate plan assets into the three fair value hierarchy levels and provide
a rollforward of the changes in fair value of plan assets classified as Level 3. The disclosures about plan assets required by this
Guidance are effective for fiscal years ending after December 15, 2009. Since this Guidance requires only additional disclosures
concerning plan assets (see Note 15 for disclosures related to the adoption of this Guidance), the adoption of this Guidance did not
affect the consolidated financial position, results of operations or cash flows of the Company.
In December 2007, the FASB issued revised Guidance that significantly changed the financial accounting and reporting for business
combinations. The provisions of this Guidance, in part, include requirements to recognize, with certain exceptions, 100% of the fair
values of assets acquired, liabilities assumed, and noncontrolling interests in acquisitions of less than a 100% controlling interest
when the acquisition constitutes a change in control of the acquired entity; measure acquirer shares issued in consideration for a
business combination at fair value on the acquisition date; recognize contingent consideration arrangements at their acquisition-
date fair values, with subsequent changes in fair value generally reflected in earnings; expense, as incurred, acquisition-related
transaction costs; capitalize acquisition-related restructuring costs only if the appropriate accounting criteria are met as of the
acquisition date; and recognize changes that result from a business combination transaction in an acquirer’s existing income
36