Unum 2010 Annual Report Download - page 103

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Unum 2010 Annual Report
ASC 855 “Subsequent Events.” In May 2009, the FASB issued a new accounting standard, now included in ASC 855, to provide
subsequent events guidance. This topic was previously addressed only in the auditing literature, and is largely similar to the auditing
guidance with limited exceptions which are not intended to result in significant changes in practice. We adopted this standard effective
June 30, 2009. The FASB issued an update in February 2010 to remove the requirement, for certain entities, to disclose the date through
which subsequent events have been evaluated. This standard and update had no effect on our financial position or results of operations.
Accounting Updates Adopted in 2008:
ASC 325 “Investments — Other.” In January 2009, the FASB issued a new accounting standard, now included in ASC 325, to amend
the impairment guidance on purchased beneficial interests and beneficial interests that continue to be held by a transferor in securitized
financial assets to achieve more consistent determination of whether an other-than-temporary impairment has occurred. This standard
retains and emphasizes the objective of an other-than-temporary impairment assessment and the related disclosure requirements for
certain investments in debt and equity securities. We adopted this standard effective December 31, 2008. The adoption of this standard
did not have a material effect on our financial position or results of operations.
ASC 820 “Fair Value Measurements and Disclosures.” In September 2006, the FASB issued a new accounting standard, now included
in ASC 820, to define fair value, establish a framework for measuring fair value, and expand disclosures about fair value measurements.
We adopted this standard effective January 1, 2008. The adoption of this standard did not have a material effect on our financial position
or results of operations.
Accounting Updates Outstanding:
ASC 310 “Receivables.” As previously noted, in July 2010, the FASB issued an update to require additional disclosures regarding the
credit quality of financing receivables. Disclosures around changes in the allowance for credit losses and the reason for those changes are
effective for interim and annual reporting periods beginning on or after June 15, 2011. The adoption of this update will expand our disclosures
for financing receivables, primarily our investments in mortgage loans, but will have no effect on our financial position or results of operations.
ASC 944 “Financial Services — Insurance.” In October 2010, the FASB issued an update which is intended to address diversity in practice
regarding the interpretation of which costs relating to the acquisition of new or renewal insurance contracts qualify as deferred acquisition
costs. The amendments in this update are effective for fiscal years, and interim periods within those fiscal years, beginning after December 15,
2011, and permit retrospective application. The guidance in this update will result in a decrease in the opening balance of our retained
earnings if we choose retrospective application on adoption and will result in a decrease in the level of costs we defer subsequent to
adoption. Given that application guidance is still evolving, we have not yet finalized the expected impact on our financial position or results
of operations.