Waste Management 2013 Annual Report Download - page 128

Basis of Presentation of Consolidated Financial Information
Comprehensive Income — In February 2013, the Financial Accounting Standards Board (“FASB”) issued
amended authoritative guidance associated with comprehensive income, which requires companies to provide
information about the amounts that are reclassified out of accumulated other comprehensive income by
component. Additionally, companies are required to present significant amounts reclassified out of accumulated
other comprehensive income by the respective line items of net income. The amendment to authoritative
guidance associated with comprehensive income was effective for the Company on January 1, 2013. The
adoption of this guidance did not have a material impact on our consolidated financial statements. We have
presented the information required by this amendment in Note 14 to the Consolidated Financial Statements.
In June 2011, the FASB issued amended authoritative guidance associated with comprehensive income,
which requires companies to present the total of comprehensive income, the components of net income, and the
components of other comprehensive income either in a single continuous statement of comprehensive income or
in two separate but consecutive statements. This update eliminates the option to present the components of other
comprehensive income as part of the statement of changes in equity. The amendments to authoritative guidance
associated with comprehensive income were effective for the Company on January 1, 2012 and have been
applied retrospectively. The adoption of this guidance did not have a material impact on our consolidated
financial statements.
Indefinite-Lived Intangible Assets Impairment Testing — In July 2012, the FASB amended authoritative
guidance associated with indefinite-lived intangible assets impairment testing. The amended guidance provides
companies the option to first assess qualitative factors to determine whether the existence of events or
circumstances leads to a determination that it is more likely than not that the indefinite-lived intangible asset is
impaired. If, after assessing the totality of events or circumstances, an entity determines it is not more likely than
not that the indefinite-lived intangible asset is impaired, then the entity is not required to take further action. The
amendments were effective for indefinite-lived intangible impairment tests performed for fiscal years beginning
after September 15, 2012; however, early adoption was permitted. The Company’s early adoption of this
guidance in 2012 did not have an impact on our consolidated financial statements. Additional information on
impairment testing can be found in Note 3 to the Consolidated Financial Statements.
Fair Value Measurement — In May 2011, the FASB amended authoritative guidance associated with fair
value measurements. This amended guidance defines certain requirements for measuring fair value and for
disclosing information about fair value measurements in accordance with GAAP. The amendments to
authoritative guidance associated with fair value measurements were effective for the Company on January 1,
2012 and have been applied prospectively. The adoption of this guidance did not have a material impact on our
consolidated financial statements.
Goodwill Impairment Testing — In September 2011, the FASB amended authoritative guidance associated
with goodwill impairment testing. The amended guidance provides companies the option to first assess
qualitative factors to determine whether the existence of events or circumstances leads to a determination that it
is more likely than not that the fair value of a reporting unit is less than its carrying amount before performing the
two-step impairment test. If, after assessing the totality of events or circumstances, an entity determines it is not
more likely than not that the fair value of a reporting unit is less than its carrying amount, then performing the
two-step impairment test is unnecessary. The amendments were effective for goodwill impairment tests
performed for fiscal years beginning after December 15, 2011; however, early adoption was permitted. The
Company’s early adoption of this guidance in 2011 did not have an impact on our consolidated financial
statements. Additional information on impairment testing can be found in Note 3 to the Consolidated Financial
Statements.
Multiple-Deliverable Revenue Arrangements — In October 2009, the FASB amended authoritative
guidance associated with multiple-deliverable revenue arrangements. This amended guidance addresses the
determination of when individual deliverables within an arrangement are required to be treated as separate units
of accounting and modifies the manner in which consideration is allocated across the separately identifiable
deliverables. The amendments to authoritative guidance associated with multiple-deliverable revenue
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