World Fuel Services 2011 Annual Report Download - page 84

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Testing Goodwill for Impairment. In September 2011, the FASB issued an ASU which permits an entity
to first assess qualitative factors to determine whether it is necessary to perform the two-step
quantitative goodwill impairment test. The adoption of this ASU (pursuant to early adoption provisions)
did not have a material impact on our consolidated financial statements and disclosures.
Disclosure Relating to Comprehensive Income. In June 2011, the FASB issued an ASU aimed at
increasing the prominence of items reported in other comprehensive income in the financial statements.
This update requires companies to present comprehensive income in a single statement below net
income or in a separate statement of comprehensive income immediately following the income
statement. This ASU becomes effective on a prospective basis at the beginning of our 2012 fiscal year.
In December 2011, the FASB issued an ASU to defer the effective date of the specific requirement to
present items that are reclassified out of accumulated other comprehensive income to net income
alongside their respective components of net income and other comprehensive income. All other
provisions of this update are effective for us. We do not believe that the adoption of this ASU will have a
material impact on our consolidated financial statements and disclosures.
Fair Value Measurements. In May 2011, the FASB issued an ASU to provide a consistent definition of fair
value and common requirements for measurement and disclosure of fair value between International
Financial Reporting Standards and U.S. Generally Accepted Accounting Principals. This ASU changes
some fair value measurement principles and enhances disclosure requirements related to activities in
Level 3 of the fair value hierarchy. The guidance becomes effective on a prospective basis at the
beginning our 2012 fiscal year. We do not believe that the adoption of this ASU will have a material
impact on our consolidated financial statements and disclosures.
Transfers and Servicing: Reconsideration of Effective Control for Repurchase Agreements. In April 2011,
the FASB issued an ASU that affects all entities that enter into agreements to transfer financial assets
that both entitle and obligate the transferor to repurchase or redeem the financial assets before their
maturity. This ASU removes from the assessment of effective control the criterion relating to the
transferor’s ability to repurchase or redeem financial assets on substantially the agreed terms, even in
the event of default by the transferee, and also eliminates the requirement to demonstrate that the
transferor possesses adequate collateral to fund substantially all of the cost purchasing replacement
financial assets. This ASU is effective at the beginning of our 2012 fiscal year and is required to be
applied prospectively to transactions or modifications of existing transactions that occur on or after
January 1, 2012. The adoption of this ASU did not have a material impact on our consolidated financial
statements and disclosures.
Disclosure of Supplementary Pro Forma Information for Business Combinations. In January 2011, we
adopted an ASU which clarifies the acquisition date that should be used for reporting pro forma financial
information when comparative financial statements are presented and also expands the supplemental
pro forma disclosures required. The adoption of this ASU did not have a material impact on our
consolidated financial statements and disclosures.
When to Perform Step 2 of the Goodwill Impairment Test for Reporting Units with Zero or Negative
Carrying Amounts. In January 2011, we adopted an ASU which modifies the requirements of step 1 of
the goodwill impairment test for reporting units with zero or negative carrying amounts. The adoption of
this ASU did not have a material impact on our consolidated financial statements and disclosures.
Disclosures about the Credit Quality of Financing Receivables and the Allowance for Credit Losses. In
July 2010, the FASB issued an ASU relating to improved disclosures about the credit quality of financing
receivables and the related allowance for credit losses. In December 2010, we adopted the portion of
the guidance which pertains to disclosures as of the end of the reporting period. In January 2011, we
adopted the portion of the guidance which pertains to the disclosures for activity that occurs during a
reporting period. The adoption of this ASU did not have a material impact on our consolidated financial
statements and disclosures.
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