Travelzoo 2009 Annual Report Download - page 75

In April 2009, the FASB issued a new FASB staff position relating to interim disclosures about fair value of
financial instruments, which require an entity to provide interim disclosures about the fair value of all financial
instruments and to include disclosures related to the methods and significant assumptions used in estimating those
instruments. This FSP was effective for interim and annual periods ending after June 15, 2009. The adoption of
these pronouncements did not have a material impact on the Company’s consolidated results of operations or
financial condition.
In May 2009, the FASB issued a new accounting standard relating to subsequent events, which is effective for
interim and annual periods ending after June 15, 2009. This new accounting standard is intended to establish general
standards of accounting for and disclosure of events that occur after the balance sheet date but before financial
statements are issued or are available to be issued. In particular, this new accounting standard sets forth the period
after the balance sheet date during which management of a reporting entity should evaluate events or transactions
that may occur for potential recognition or disclosure in the financial statements and the circumstances under which
an entity should recognize events or transactions occurring after the balance sheet date in its financial statements.
Effective June 30, 2009, the Company adopted this new accounting standard. The adoption of this standard did not
have a material impact on the Company’s consolidated results of operations or financial condition.
In June 2009, the FASB issued a new accounting standard that changes the consolidation model for variable
interest entities, which is effective for interim and annual reporting periods beginning after November 15, 2009.
Earlier adoption is prohibited. The new accounting standard requires a company to perform qualitative analysis
when determining whether it must consolidate a variable interest entity and ongoing reassessments to determine if a
company must consolidate a variable interest entity. The new accounting standard also requires a company to
provide additional disclosures about its involvement with variable interest entities, any significant changes in risk
exposure due to that involvement and how its involvement with a variable interest entity affects the company’s
financial statements. A company will also be required to disclose any significant judgments and assumptions made
in determining whether it must consolidate a variable interest entity. The Company is currently assessing the future
impact of this new accounting standard on its consolidated results of operations and financial condition.
In June 2009, the FASB issued ASU 2009-01, Generally Accepted Accounting Principles (ASU 2009-01).
ASU 2009-01 established “The FASB Accounting Standards Codification,” or Codification, which became the
single source of authoritative GAAP recognized by the FASB to be applied by nongovernmental entities. On the
effective date, the Codification superseded all then-existing non-SEC accounting and reporting standards. All other
non-grandfathered non-SEC accounting literature not included in the Codification will become non-authoritative.
ASU 2009-01 is effective for interim and annual periods ending after September 15, 2009. The Company adopted
the provisions of ASU 2009-01 for the period ended September 30, 2009. There was no material impact on the
Company’s consolidated results of operations, financial condition or cash flows.
In August, 2009, the FASB issued ASU 2009-05, a new accounting standard update regarding the measure-
ment of liabilities at fair value. This standard update provides techniques to use in measuring fair value of a liability
in circumstances in which a quoted price in an active market for the identical liability is not available. This standard
update is effective prospectively for all interim and annual reporting periods upon issuance. Effective August 2009,
the Company adopted this new accounting standard update. The adoption of this new accounting standard update
did not have a material impact on the Company’s consolidated results of operations or financial condition.
In October 2009, the FASB issued ASU 2009-13, a new accounting standard update for revenue recognition
with multiple deliverables. The new accounting standard update defines when individual deliverables included in a
multiple-element arrangement may be treated as separate units of accounting. The update primarily provides two
significant changes: 1) eliminates the need for objective and reliable evidence of the fair value for the undelivered
element in order for a delivered item to be treated as a separate unit of accounting, and 2) eliminates the residual
method to allocate the arrangement consideration. In addition, the update also expands the disclosure requirements
for revenue recognition. The new accounting standard update will be effective for the Company January 1, 2011,
with early adoption permitted. The Company is currently assessing the future impact of this new accounting
standard on its consolidated results of operations and financial condition.
In January 2010, the FASB issued ASU 2010-06, a new accounting standard which requires reporting entities
to make new disclosures about recurring or nonrecurring fair-value measurements including significant transfers
50