External Primary ADC PDF

Accounting Disclosure Checklist Annual (12/10)Entity Year End

Prepared by

Date

Purpose The Accounting Disclosure Checklist is designed to serve as a memory jogger of financial statement disclosures. As a memory jogger, the this disclosure checklist does not replace the preparers judgment in determining necessary disclosures. Refer to applicable literature for detailed disclosure requirements. Applicability This disclosure checklist is useful when preparing financial statements in conformity with generally accepted accounting principles (GAAP) in the United States of America, except compiled financial statements that omit substantially all disclosures and the financial statements of the following plans/entities: The financial statements of employee benefit plans. The financial statements of state and local governmental entities. The financial statements of certain U.S. Government entities. The disclosure checklist is designed to address current-year disclosure requirements. In situations where new standards or other literature replace previous literature, prior-year disclosures made pursuant to prioryear requirements should not be changed or deleted unless explicitly required in the new standard or literature. The disclosure checklist is designed to follow the topical structure of The FASB Accounting Standard Codification and contains much of the original Codification language to provide the user with the most relevant information available and limit the need to refer back to the actual Codification. Certain disclosures included in the checklist are required to be disclosed, if applicable, in the financial statements of entities subject to SEC reporting requirements (including SEC Observer comments relating to EITF issues) that are prepared in conformity with GAAP pursuant to the Securities and Exchange Commissions Proxy Rules (Regulation 14A). The Proxy Rules incorporate Regulation S-X and certain sections of Regulation S-K. Therefore, items under sections labeled SEC Guidance cover the applicable sections of Regulation S-X, Regulation S-K, SEC Staff Accounting Bulletins, and other SEC staff guidance. Additionally, certain content from the Financial Accounting Standards Board (FASB) is applicable only to public entities (see definition below). Items that are identified as SEC Guidance or as applicable to public entities are not required to be disclosed by non-SEC registrants. All other disclosures included in the checklist (unless otherwise specifically indicated) are required to be disclosed, if applicable, in financial statements prepared in conformity with GAAP. Since the annual report to shareholders prepared under the annual Proxy Rules is often incorporated by reference into the Form 10-K, it is important to note the major differences between those financial statements required by Form 10-K and those required under the Proxy Rules (i.e., the rules that apply in2010 KPMG LLP, a Delaware limited liability partnership and the U.S. member firm of the KPMG network of independent member firms affiliated with KPMG International Cooperative (KPMG International), a Swiss entity. All rights reserved.

Accounting Disclosure Checklist - Annual (12/10) Page 2 of 290 situations in which the solicitation of proxies is made in connection with an annual meeting of security holders, such as when directors are to be elected, and not when shareholders are voting on a business acquisition or other transaction requiring additional financial information). The Proxy Rules do not require separate financial statements of subsidiaries not consolidated and 50 percent-or-less-owned persons (S-X, Rule 3-09), financial statements of guarantors and issuers of guaranteed securities registered or being registered (S-X, Rule 3-10), financial statements of an inactive registrant (S-X, Rule 311), financial statements of affiliates whose securities collateralize an issue registered or being registered (S-X, Rule 3-16), or financial statement schedules (S-X, Article 12). Neither the Proxy Rules nor Form 10-K require separate financial statements of businesses acquired or to be acquired (S-X, Rule 3-05), or the pro forma financial information required by S-X, Article 11. A public entity, for the purpose of this checklist, unless otherwise noted, is a business entity or a not-forprofit entity that meets any of the following conditions: a. It has issued debt or equity securities or is a conduit bond obligor for conduit debt securities that are traded in a public market (a domestic or foreign stock exchange or an over-the-counter market, including local or regional markets). b. It is required to file financial statements with a stock exchange. c. It provides financial statements for the purpose of issuing any class of securities in a public market. A public entity in the context of ASC Topic 718, Compensation Stock Compensation, and ASC Subtopic 470-20, Debt Debt with Conversion and Other Options Cash Conversion, includes any subsidiary of a public entity. Rules pertaining solely to regulated entities or specialized industries, such as financial institutions or oil and gas, are not included in this checklist. Although certain disclosures in this checklist are specifically for commercial and industrial public companies (as defined in Regulation S-X, Article 5 (Rule 5-01) (ASC paragraph 205-10-S99-5)), certain of the items included in this checklist may be applicable to other specialized industries.

2010 KPMG LLP, a Delaware limited liability partnership and the U.S. member firm of the KPMG network of independent member firms affiliated with KPMG International Cooperative (KPMG International), a Swiss entity. All rights reserved.

Accounting Disclosure Checklist - Annual (12/10) Page 3 of 290

Section ILiteratureThe checklist includes coded references to certain firm and professional accounting literature. All literature listed below is available electronically in Accounting Research Online (ARO). This version of the Accounting Disclosure Checklist considers relevant information (as described in the Purpose on page 1) through December 2010. On July 1, 2009, the FASB launched its Accounting Standards Codification (ASC). Pursuant to FASB Statement No. 168, The FASB Accounting Standards Codification and the Hierarchy of Generally Accepted Accounting Principles, the Codification is the sole source of authoritative U.S. GAAP for interim and annual periods ending after September 15, 2009, except for rules and interpretive releases of the SEC, which are sources of authoritative GAAP for SEC registrants. For interim and annual periods ending after September 15, 2009, entities should refer to applicable Codification sections when citing specific guidance in U.S. GAAP in financial statements. References to legacy standards may continue to be used when there is no Codification reference (for example, grandfathered guidance). Additionally, it may be appropriate to refer to legacy standards when disclosing the adoption of a new accounting pronouncement, including a pronouncement to be adopted in a future reporting period, when the guidance in that pronouncement has not yet been codified or is included throughout one or more ASC topics that also contain guidance that was not affected by the accounting change. When citing specific SEC guidance in financial statements, entities should refer to the applicable SEC rule or regulation. Codification references should not be used for SEC guidance, even in periods ending after the Codification is effective. The Accounting Disclosure Checklist (12/10) includes only the references to the new Codification references, where applicable. Code ASC Issuer FASB Literature Considered in Checklist FASB Accounting Standards Codification Portions of the FASB Accounting Standards Codification, copyright by Financial Accounting Foundation, 401 Merritt 7, Norwalk, CT 06856, have been reproduced with permission. Note: The FASB Accounting Standards Codification includes selected SEC and SEC Staff content for reference purposes by public companies. The Codification does not replace or affect how the SEC or SEC Staff issues or updates SEC content. The FASB ASC references that follow the SEC references in this document are included for information purposes only. ASU EITF SOP PB AU AR SFAS FASB EITF AcSEC AcSEC AICPA AICPA FASB FASB Accounting Standards Update EITF Abstracts (or draft ASUs) through December 17, 2010; in addition, minutes of meetings through December 17, 2010 AICPA Statements of Position AICPA Practice Bulletins U.S. Auditing Standards, Volume I of AICPA Professional Standards and/or the Auditing Standards of the PCAOB, where applicable Statements on Standards for Accounting and Review Services, Volume II of AICPA Professional Standards Statement of Financial Accounting Standards


Accounting Disclosure Checklist - Annual (12/10) Page 4 of 290 FRR FIN FTB FSP SEC S-X S-K SAB ARB APB TPA PB SEC FASB FASB FASB SEC SEC SEC SEC FASB FASB AICPA AcSEC Codified Financial Reporting Releases, as contained in the 2010 SEC Rules and Regulations handbook FASB Interpretations FASB Technical Bulletins FASB Staff Positions Financial Reporting Manual; Speeches; Current Accounting and Disclosure Issues in the Division of Corporation Finance Regulation S-X, as contained in the 2010 SEC Rules and Regulations handbook Regulation S-K, as contained in the 2010 SEC Rules and Regulations handbook Staff Accounting Bulletins Accounting Research Bulletin Accounting Principles Board Opinions Technical Practice Aid AICPA Practice Bulletins

Financial statement preparers should consider disclosure requirements contained in literature issued subsequent to the most recent literature considered in the checklist. Additional information regarding financial statement disclosures is available in the following KPMG guides and resources on Accounting Research Online (ARO): Codification with KPMG Interpretations (CKI) KPMG Accounting and Reporting Guide US (KARG) Accounting for Business Combinations and Noncontrolling Interests: An Analysis of FASB Statements 141(R) (ASC Topic 805) and No. 160 (ASC Subtopic 810-10) (February 2010) SEC Financial Statement Requirements for Business Combinations (Second Edition) Business Combinations Handbook Volume III: Other Issues Related to Business Combinations Derivatives and Hedging Accounting Handbook (Updated 2010) (ASC Topic 815) FASB Derivatives Implementation Group: Final Resolutions, Including KPMGs Observations and Handbook Revisions FAS 157 Q&A in KARG Chapter 70 Fair Value (ASC Subtopic 820-10) Quarterly Outlook Disclosures about Fair Value of Financial Instruments: A Discussion of FASB Statement 107 Implementation Issues (ASC Subtopic 825-10) Accounting for Certain Financial Instruments with Characteristics of both Liabilities and Equity: An Analysis of Statement No. 150 (ASC Subtopic 480-10) Accounting for Income Taxes An Analysis of FASB Statement 109 (Second Edition) (ASC Topic 740) FASB Statement No. 109 Question and Answers: A Supplement to KPMGs Accounting for Income Taxes (Second Edition) July 2009 (ASC Topic 740)2010 KPMG LLP, a Delaware limited liability partnership and the U.S. member firm of the KPMG network of independent member firms affiliated with KPMG International Cooperative (KPMG International), a Swiss entity. All rights reserved.

Accounting Disclosure Checklist - Annual (12/10) Page 5 of 290 SEC Staff Accounting Bulletin No. 104 Revenue Recognition (ASC paragraph 605-10-S99-1) Accounting for Revenue Arrangements with Multiple Deliverables: An Analysis of EITF Issue No. 00-21 (ASC Subtopic 605-25) Software Revenue Recognition: An Analysis of SOP 97-2 and Related Guidance (Third Edition) (ASC Subtopic 985-605) Share-Based Payment: An Analysis of Statement No. 123(R) (February 2008) (ASC Topic 718) Defining the Digital Future Guide to Accounting for Foreign Currency (ASC Topic 830) Consolidation of Variable Interest Entities: An Analysis of FASB Interpretation No. 46(R) (ASC Subtopic 810-10) Guide to Accounting for the Impairment or Disposal of Long-Lived Assets: An Analysis of FASB Statement 144 (ASC Subtopic 360-10) Accounting for Loan Fees and Costs: An Analysis of FASB Statement 91 (ASC Subtopic 310-20)



Section IIIndex to the Accounting Disclosure ChecklistA. Page Ref. 15 16 17 22 23 23 Category of Financial Reporting Considerations 1. Subtopic 205-10: Presentation of Financial Statements Overall 2. Subtopic 205-10: Presentation of Financial Statements OverallSEC Guidance 3. Subtopic 210-10: Balance SheetOverall SEC Guidance 4. Subtopic 210-20: Balance SheetOffsetting 5. Subtopic 215-10: Statement of Shareholder Equity OverallSEC Guidance 6. Subtopic 220-10: Comprehensive IncomeOverall (Note: An entity that has no items of other comprehensive income in any period presented is not required to report comprehensive income.) 25 25 27 29 30 39 40 41 46 46 49 7. Subtopic 225-10: Income StatementOverall 8. Subtopic 225-10: Income StatementOverallSEC Guidance 9. Subtopic 225-20: Income StatementExtraordinary and Unusual Items 10. Subtopic 225-30: Income StatementBusiness Interruption Insurance 11. Subtopic 230-10: Statement of Cash FlowsOverall 12. Subtopic 235-10: Notes to the Financial Statements Overall 13. Going Concern 14. Subtopic 250-10: Accounting Changes and Error CorrectionsOverall 15. Subtopic 255-10: Changing PricesOverall 16. Subtopic 260-10: Earnings per ShareOverall (required for public entities only) 17. Subtopic 270-10: Interim ReportingOverall (4th Quarter) (required for public entities only) Index to Checklist


Accounting Disclosure Checklist - Annual (12/10) Page 7 of 290 Page Ref. 49 50 55 59 64 72 Category of Financial Reporting Considerations 18. Subtopic 272-10: Limited Liability CompaniesOverall 19. Subtopic 275-10: Risks and UncertaintiesOverall 20. Subtopic 280-10: Segment ReportingOverall (required for public entities only) 21. Subtopic 310-10: ReceivablesOverall (prior to the adoption of ASU 2010-20) 22. Subtopic 310-10: ReceivablesOverall (after adoption of ASU 2010-20) 23. Acquisitions, Development, and Construction (ADC) Arrangements Subsection of Subtopic 310-10: ReceivablesOverall 24. Subtopic 310-20: ReceivablesNonrefundable Fees and Other Costs 25. Subtopic 310-30: ReceivablesLoans and Debt Securities Acquired with Deteriorated Credit Quality 26. Subtopic 310-40: ReceivablesTroubled Debt Restructurings by Creditors 27. Subtopic 320-10: InvestmentsDebt and Equity SecuritiesOverall 28. Subtopic 323-10: InvestmentsEquity Method and Joint VenturesOverall Subtopic 323-740: InvestmentsEquity Method and Joint VenturesIncome Taxes 86 29. Qualified Affordable Housing Project Investments Subsection of Subtopic 323-740: InvestmentsEquity Method and Joint VenturesIncome Taxes 30. Subtopic 325-20: InvestmentsOtherCost Method Investments 31. Subtopic 325-30: InvestmentsOtherInvestments in Insurance Contracts 32. Life Settlement Contracts Subsection of Subtopic 325-30: InvestmentsOtherInvestments in Insurance Contracts 33. Subtopic 330-10: InventoryOverall 34. Subtopic 340-10: Deferred Costs and Other Assets Overall SEC Guidance

73 73 75 76 83

86 87 87 89 92


Accounting Disclosure Checklist - Annual (12/10) Page 8 of 290 Page Ref. 92 92 93 96 98 99 Category of Financial Reporting Considerations 35. Subtopic 340-20: Deferred Costs and Other Assets Capitalized Advertising Costs 36. Subtopic 340-30: Deferred Costs and Other Assets Insurance Contracts that Do Not Transfer Insurance Risks 37. Subtopic 350-20: IntangiblesGoodwill and Other Goodwill 38. Subtopic 350-30: IntangiblesGoodwill and Other General Intangibles Other Than Goodwill 39. Subtopic 360-10: Property, Plant, and Equipment Overall 40. Impairment or Disposal of Long-Lived Assets Subsection of Subtopic 360-10: Property, Plant, and Equipment Overall 41. Subtopic 205-20: Presentation of Financial Statements Discontinued Operations 42. Subtopic 405-20: LiabilitiesExtinguishments of Liabilities 43. Subtopic 405-30: LiabilitiesInsurance-Related Assessments 44. Subtopic 410-20: Asset Retirement and Environmental ObligationsAsset Retirement Obligations 45. Subtopic 410-30: Asset Retirement and Environmental ObligationsEnvironmental Obligations 46. Subtopic 420-10: Exit or Disposal Cost Obligations Overall (Restructuring) 47. Subtopic 420-10: Exit or Disposal Cost Obligations Overall (Restructuring)SEC Guidance 48. Subtopic 440-10: CommitmentsOverall 49. Unconditional Purchase Obligations Subsection of Subtopic 440-10: CommitmentsOverall 50. Subtopic 450-20: ContingenciesLoss Contingencies 51. Subtopic 450-30: ContingenciesGain Contingencies 52. Subtopic 460-10: GuaranteesOverall

100 102 103 103 104 107 108 109 110 111 113 114


Accounting Disclosure Checklist - Annual (12/10) Page 9 of 290 Page Ref. 115 116 119 121 122 122 123 124 127 132 135 138 139 139 139 140 142 143 Category of Financial Reporting Considerations 53. Product Warranties Subsection of Subtopic 460-10: GuaranteesOverall 54. Subtopic 470-10: DebtOverall 55. Subtopic 470-20: DebtDebt with Conversion and Other Options 56. Cash Conversion Subsection of Subtopic 470-20: Debt Debt with Conversion and Other Options 57. Subtopic 470-30: DebtParticipating Mortgage Loans 58. Subtopic 470-50: DebtModifications and Extinguishments 59. Subtopic 470-60: DebtTroubled Debt Restructurings by Debtors 60. Subtopic 480-10: Distinguishing Liabilities from Equity Overall (Statement 150 and related interpretations) 61. Subtopic 480-10: Distinguishing Liabilities from Equity OverallSEC Guidance (ASR 268, EITF D-98) 62. Subtopic 505-10: EquityOverall 63. Subtopic 505-10: EquityOverallSEC Guidance 64. Subtopic 505-20: EquityStock Dividends and Stock SplitsSEC Guidance 65. Subtopic 505-30: EquityTreasury Stock 66. Subtopic 505-50: EquityEquity-Based Payments to Non-Employees 67. Subtopic 605-10: Revenue RecognitionOverall 68. Subtopic 605-15: Revenue RecognitionProducts 69. Subtopic 605-20: Revenue RecognitionServices 70. Subtopic 605-25: Revenue RecognitionMultiple Element Arrangements (prior to adoption of ASU 200913) 71. Subtopic 605-25: Revenue RecognitionMultiple Element Arrangements (after adoption of ASU 2009-13) 72. Subtopic 605-28: Revenue RecognitionMilestone Method (after adoption of ASU 2010-17)

143 146


Accounting Disclosure Checklist - Annual (12/10) Page 10 of 290 Page Ref. 147 148 149 150 150 151 151 Category of Financial Reporting Considerations 73. Subtopic 605-35: Revenue RecognitionConstructionType and Production-Type Contracts 74. Subtopic 605-40: Revenue RecognitionGains and Losses 75. Subtopic 605-45: Revenue RecognitionPrincipal Agent Considerations 76. Subtopic 605-50: Revenue RecognitionCustomer Payments and Incentives 77. Subtopic 710-10: CompensationGeneralOverall 78. Subtopic 712-10: CompensationNonretirement Postemployment BenefitsOverall 79. Pension and Other Postretirement Benefits Guidance (Subtopics 715-20, 715-30, and 715-60) That Applies to Both Public and Nonpublic Entities 80. Pension and Other Postretirement Benefits Guidance (Subtopics 715-20, 715-30, and 715-60) That Applies to Public Entities Only 81. Pension and Other Postretirement Benefits Guidance (Subtopics 715-20, 715-30, and 715-60) That Applies to Nonpublic Entities Only 82. Medicare Prescription Drug, Improvement, and Modernization Act Subsection of Subtopic 715-60: CompensationRetirement BenefitsDefined Benefit PlansOther Postretirement 83. Subtopic 715-70: CompensationRetirement Benefits Defined Contribution Plans 84. Subtopic 715-80: CompensationRetirement Benefits Multiemployer Plans 85. Subtopic 718-10: CompensationStock Compensation Overall 86. Subtopic 718-10: CompensationStock Compensation OverallSEC Guidance 87. Subtopic 718-40: CompensationStock Compensation Employee Stock Ownership Plans 88. Claims-Made Contracts Subsection of Subtopic 720-20: Other ExpensesInsurance Costs

153

159

163

164 164 165 170 171 173


Accounting Disclosure Checklist - Annual (12/10) Page 11 of 290 Page Ref. 173 173 174 174 174 182 189 Category of Financial Reporting Considerations 89. Subtopic 720-35: Other ExpensesAdvertising Costs 90. Subtopic 720-50: Other ExpensesFees Paid to the Federal Government by Pharmaceutical Manufacturers 91. Subtopic 730-10: Research and DevelopmentOverall 92. Subtopic 730-20: Research and DevelopmentResearch and Development Arrangements 93. Income Taxes (Subtopics 740-10, 740-20, and 740-30) 94. Business Combinations (Subtopics 805-10, 805-20, and 805-30) 95. Transactions Between Entities Under Common Control Subsection of Subtopic 805-50: Business Combinations Related Issues 96. New Basis of Accounting (Pushdown) Subsection of Subtopic 805-50: Business CombinationsRelated IssuesSEC Guidance 97. Subtopic 808-10: Collaborative ArrangementsOverall 98. Subtopic 810-10: ConsolidationOverall 99. Variable Interest Entities Subsection of Subtopic 810-10: ConsolidationOverall 100. Subtopic 815-10: Derivatives and HedgingOverall 101. Subtopic 815-15: Derivatives and HedgingEmbedded Derivatives 102. Subtopic 815-25: Derivatives and HedgingFair Value Hedging 103. Subtopic 815-30: Derivatives and HedgingCash Flow Hedges 104. Subtopic 815-35: Derivatives and HedgingNet Investment Hedges 105. Subtopic 815-40: Derivatives and HedgingContracts in Entitys Own Equity 106. Subtopic 820-10: Fair Value Measurements and DisclosuresOverall

190

191 192 197 203 215 216 217 218 218 220


Accounting Disclosure Checklist - Annual (12/10) Page 12 of 290 Page Ref. 226 Category of Financial Reporting Considerations 107. Subtopic 825-10: Financial InstrumentsOverall (Note: The disclosure guidance in this Subsection applies to all entities but is optional for an entity that meets all of the following criteria: (a) the entity is a nonpublic entity, (b) the entitys total assets are less than $100 million on the date of the financial statements, and (c) the entity has no instrument that, in whole or in part, is accounted for as a derivative instrument under Topic 815 other than commitments related to the origination of mortgage loans to be held for sale during the reporting period.) 231 234 235 108. Fair Vale Option Subsection of Subtopic 825-10: Financial InstrumentsOverall 109. Subtopic 825-20: Financial InstrumentsRegistration Payment Arrangements 110. Subtopic 830-20: Foreign Currency MattersForeign Currency Transactions; Subtopic 830-740: Foreign Currency MattersIncome Taxes 111. Subtopic 830-30: Foreign Currency MattersTranslation of Financial Statements 112. Subtopic 835-20: InterestCapitalization of Interest 113. Lessees and Real Estate Subsections of Topic 840: Leases 114. Lessors Subsections of Topic 840: Leases 115. Subtopic 845-10: Nonmonetary TransactionsOverall 116. Purchase and Sales of Inventory Subsection of Subtopic 845-10: Nonmonetary TransactionsOverall 117. Subtopic 850-10: Related Party DisclosuresOverall 118. Subtopic 852-10: ReorganizationsOverall; Subtopic 852-740: ReorganizationsIncome Taxes 119. Subtopic 852-20: ReorganizationsQuasiReorganizations 120. Subtopic 855-10: Subsequent EventsOverall 121. Subtopic 860-10: Transfers and ServicingOverall 122. Subtopic 860-20: Transfers and ServicingSales of Financial Assets

236 239 239 242 245 245 245 247 250 251 253 255


Accounting Disclosure Checklist - Annual (12/10) Page 13 of 290 Page Ref. 2580 259 Category of Financial Reporting Considerations 123. Subtopic 860-30: Transfers and ServicingSecured Borrowing and Collateral 124. Subtopic 860-50: Transfers and ServicingServicing Assets and Liabilities


Accounting Disclosure Checklist - Annual (12/10) Page 14 of 290 B. Index to Specialized Checklists

The following specialized checklists address certain additional disclosures for selected specialized industries and supplement this Annual Disclosure Checklist (except for Accounting Disclosure Checklist Employee Benefit Plans which substitutes for this checklist). Form Broker/Dealer Depository and Lending Institutions Health Care Higher Education, Research, and Other Not-for-Profits (HERON) Insurance Companies Investment Companies Managements Discussion & Analysis Public Utilities Entities with Oil and Gas Producing Activities For other specialized industries, refer to Section IV of this disclosure checklist. There is also an Interim Accounting Disclosure Checklist which serves a s a memory jogger of the minimum disclosures in condensed interim financial information.



Section IIIAccounting Disclosure ChecklistApplicability 1 Subtopic 205-10: Presentation of Financial StatementsOverall Presentation Note: See paragraphs 210-10-45-1 through 20-10-45-9 for guidance on classifying assets and liabilities as current and non-current in a classified balance sheet. > Comparative Financial Statements 205-10-45-2. In any one year it is ordinarily desirable that the statement of financial position, the income statement, and the statement of changes in equity be presented for one or more preceding years, as well as for the current year. 205-10-45-3. Prior-year figures shown for comparative purposes shall in fact be comparable with those shown for the most recent period. Any exceptions to comparability shall be clearly brought out as described in Topic 250. 205-10-45-4. Notes to financial statements, explanations, and accountants reports containing qualifications that appeared on the statements for the preceding years shall be repeated, or at least referred to, in the comparative statements to the extent that they continue to be of significance. Disclosure 215-10-50-1. For disclosure guidance on items that comprise shareholders equity, see Topic 505, Equity. > Changes Affecting Comparability 205-10-50-1. If, because of reclassifications or for other reasons, changes have occurred in the manner of or basis for presenting corresponding items for two or more periods, information shall be furnished that will explain the change. KPMG & Other Guidance 1 2 Each page of the financial statements should be captioned, See accompanying notes to (consolidated) financial statements. AU 504.06; AU 551.13; AU 558.02.03. Each page of unaudited financial statements and/or unaudited supplementary information should be captioned, Unauditedsee accompanying accountants report. AR 100.40. For non-public entities, each page of compiled or reviewed financial statements and supplementary information should be captioned, See accompanying accountants review (or compilation) report. Disclosure Implications of U.S. Health Care Reform: The Patient Protection and Affordable Care Act (PPACA) and the Health Care and Education Reconciliation Act (Reconciliation Act) were enacted in the first calendar quarter of 2010. The new legislation is expected to affect companies across many industries, particularly those companies that offer post-employment benefits to employees. In addition, although many of the provisions of the new legislation do not take immediate effect,

3

4


Accounting Disclosure Checklist - Annual (12/10) Page 16 of 290 companies that may be affected by the legislation should consider disclosing information about the effects of the legislation in annual and interim financial statements (public companies should also consider disclosing certain information outside of the financial statements concerning possible future effects and consequences of the new legislation, see Item 303 of Regulation S-K). Financial statement disclosures may include a summary of the known or anticipated accounting impacts and a description of when those impacts will be reflected in the entitys financial statements. Entities that have determined the amount and timing of the financial statement impacts of the new legislation should also consider describing those impacts and timing, if significant. Entities are also encouraged to describe the key judgments used to determine the accounting impacts and timing of when those impacts will be reflected in the financial statements. Entities that have not yet determined the amount or timing (or both) of the financial statement impacts of the new legislation should consider disclosing that fact and state the key reasons why the impacts or timing (or both) are not yet determinable. Note: Subtopic 205-20: Presentation of Financial StatementsDiscontinued Operations now appears immediately after Subtopic 360-10. See Section 41.

2

Subtopic 205-10: Presentation of Financial StatementsOverallSEC Guidance > Form and Order of Financial Statements > > Presentation of Amounts 1 2 3 Regulation S-X, Rule 3-01. Present balance sheets as of the end of the two most recent fiscal years. Regulation S-X, Rule 3-02. Present statements of income and cash flows for each of the three most recent fiscal years. Regulation S-X, Rule 3-04. Present statements of stockholders equity for each period an income statement is required to be filed (alternatively, as a note to the financial statements). Regulation S-X Rule 4-01(b). a. All money amounts required to be shown in financial statements may be expressed in whole dollars or multiples thereof, as appropriate: provided, that, when stated in other than whole dollars, an indication to that effect is inserted immediately beneath the caption of the statement or schedule, at the top of the money columns, or at an appropriate point in narrative material. b. Negative amounts (red figures) shall be shown in a manner which clearly distinguishes the negative attribute. 5 SAB Topic 11.E. Financial statements and other data read consistently from left to right in same chronological order.

4

> Supplemental Schedules 6 Regulation S-X Rule 5-04(c), for requirements for Supplemental Schedules I V.


Accounting Disclosure Checklist - Annual (12/10) Page 17 of 290 a. Schedule ICondensed Financial Information of Registrant as of the date and for the periods specified by S-X, Rules 3-01 and 3-02, when the restricted net assets of consolidated subsidiaries exceed 25 percent of consolidated net assets as of the end of the most recent fiscal year. b. Schedule IIValuation and Qualifying Accounts for each period for which an audited income statement is required. c. Schedule IIIReal Estate and Accumulated Depreciation as of the date of the most recent balance sheet. d. Schedule IVMortgage Loans on Real Estate as of the date and for the periods specified in the schedule. e. Schedule VSupplemental Information Concerning Property-Casualty Insurance Operations Registrant as of the date and for the periods specified by S-X, Rules 3-01 and 3-02 when a registrant, its subsidiaries, or 50 percent-orless-owned equity-basis investees have liabilities for property-casualty insurance claims. f. The information required in the above schedules may be furnished in a single schedule, the financial statements, or a footnote. If the registrant information is shown separately, the information is properly summarized, and the statements are not unclear or confusing.

3

Subtopic 210-10: Balance SheetOverallSEC Guidance Regulation S-X Rule 5-02, Balance Sheets. ASSETS AND OTHER DEBITS Current Assets, when appropriate 1 Cash and cash items. a. Pledges or restrictions, including contractual compensating balances. 1 FRR 203.02.c.iv. In general, compensating balance arrangements should only be disclosed for the latest fiscal year and later interim period for which financial statements are presented. If the terms of arrangements require balance sheet segregation, however, this should be reflected in all balance sheets presented. In addition, if the change in the arrangements from one period to the next is so great as to constitute a fact of unusual significance to the investor in appraising the company, the change should be disclosed. b. Separate disclosure of cash or cash items restricted as to withdrawal or use. c. Describe provisions of restrictions in the notes to financial statements. d. Describe in the notes to financial statements arrangements and amounts, if determinable, of compensating balance arrangements that exist but are not agreements that legally restrict the use of cash amounts. e. Describe in the notes to financial statements compensating balances maintained under an agreement to ensure future credit availability, including amount and


Accounting Disclosure Checklist - Annual (12/10) Page 18 of 290 terms. 2 Marketable securities. The accounting and disclosure requirements for current marketable equity securities are specified by generally accepted accounting principles. With respect to all other current marketable securities, state, parenthetically or otherwise, the basis of determining the aggregate amount shown in the balance sheet, along with the alternatives of the aggregate cost or the aggregate market value at the balance sheet date. Accounts and notes receivable. a. State separately amounts receivable from 1 2 3 4 customers (trade); related parties; underwriters, promoters, and employees (other than related parties) which arose in other than the ordinary course of business; and others

3

b. If the aggregate amount of notes receivable exceeds 10 percent of the aggregate amount of receivables, the above information shall be set forth separately, in the balance sheet or in a note thereto, for accounts receivable and notes receivable. c. If receivables include amounts due under long-term contracts, state separately in the balance sheet or in a note to the financial statements the following amounts: 1 2 Balances billed but not paid by customers under retainage provisions in contracts. Amounts representing the recognized sales value of performance and such amounts that had not been billed and were not billable to customers at the date of the balance sheet. Include a general description of the prerequisites for billing. 3 Billed or unbilled amounts representing claims or other similar items subject to uncertainty concerning their determination or ultimate realization. Include a description of the nature and status of the principal items comprising such amount. 4 With respect to (1) through (3) above, also state the amounts included in each item which are expected to be collected after one year. Also state, by year, if practicable, when the amounts of retainage (see (1) above) are expected to be collected.

4 5 6

Allowances for doubtful accounts and notes receivable. The amount is to be set forth separately in the balance sheet or in a note thereto. Unearned income. Inventories. a. State separately in the balance sheet or in a note thereto, if practicable, the amounts of major classes of inventory such as:


Accounting Disclosure Checklist - Annual (12/10) Page 19 of 290 1 Finished goods; 2 inventoried costs relating to long-term contracts or programs; 3 work in process (see 210.405); 4 raw materials; and 5 supplies. If the method of calculating a LIFO inventory does not allow for the practical determination of amounts assigned to major classes of inventory, the amounts of those classes may be stated under cost flow assumptions other that LIFO with the excess of such total amount over the aggregate LIFO amount shown as a deduction to arrive at the amount of the LIFO inventory. b. The basis of determining the amounts shall be stated. If cost is used to determine any portion of the inventory amounts, the description of this method shall include the nature of the cost elements included in inventory. Elements of cost include, among other items, retained costs representing the excess of manufacturing or production costs over the amounts charged to cost of sales or delivered or in-process units, initial tooling or other deferred startup costs, or general and administrative costs. The method by which amounts are removed from inventory (e. g., average cost, first-in, first-out, last-in, first-out, estimated average cost per unit) shall be described. If the estimated average cost per unit is used as a basis to determine amounts removed from inventory under a total program or similar basis of accounting, the principal assumptions (including, where meaningful, the aggregate number of units expected to be delivered under the program, the number of units delivered to date and the number of units on order) shall be disclosed. If any general and administrative costs are charged to inventory, state in a note to the financial statements the aggregate amount of the general and administrative costs incurred in each period and the actual or estimated amount remaining in inventory at the date of each balance sheet. c. If the LIFO inventory method is used, the excess of replacement or current cost over stated LIFO value shall, if material, be stated parenthetically or in a note to the financial statements. d. For all long-term contracts or programs, the following information, if applicable, shall be stated in a note to the financial statements: 1. The aggregate amount of manufacturing or production costs and any related deferred costs (e. g., initial tooling costs) which exceeds the aggregate estimated cost of all inprocess and delivered units on the basis of the estimated average cost of all units expected to be produced under long-term contracts and programs not yet complete, as well as that portion of such amount which would not be absorbed in cost of sales based on existing firm orders at the latest balance sheet date. In addition, if practicable, disclose the amount of deferred costs by type of cost (e. g., initial tooling, deferred production, etc.) 2. The aggregate amount representing claims or other similar items subject to uncertainty concerning their determination or ultimate realization, and2010 KPMG LLP, a Delaware limited liability partnership and the U.S. member firm of the KPMG network of independent member firms affiliated with KPMG International Cooperative (KPMG International), a Swiss entity. All rights reserved.

Accounting Disclosure Checklist - Annual (12/10) Page 20 of 290 include a description of the nature and status of the principal items comprising such aggregate amount. 3. The amount of progress payments netted against inventory at the date of the balance sheet. 7 8 9 Prepaid expenses. Other current assets. State separately, in the balance sheet or in a note thereto, any amounts in excess of five percent of total current assets. Total current assets, when appropriate.

10 Securities of related parties. 11 Indebtedness of related partiesnot current. 12 Other investments. The accounting and disclosure requirements for non-current marketable equity securities are specified by generally accepted accounting principles. With respect to other security investments and any other investment, state, parenthetically or otherwise, the basis of determining the aggregate amounts shown in the balance sheet, along with the alternate of the aggregate cost or aggregate market value at the balance sheet date. 13 Property, plant and equipment. a. State the basis of determining the amounts. b. Tangible and intangible utility plant of a public utility company shall be segregated so as to show separately the original cost, plant acquisition adjustments, and plant adjustments, as required by the system of accounts prescribed by the applicable regulatory authorities. This rule shall not be applicable in respect to companies which are not required to make such a classification. 14 Accumulated depreciation, depletion, and amortization of property, plant and equipment. The amount is to be set forth separately in the balance sheet or in a note thereto. 15 Intangible assets. State separately each class of such assets which is in excess of five percent of the total assets, along with the basis of determining the respective amounts. Any significant addition or deletion shall be explained in a note. 16 Accumulated depreciation and amortization of intangible assets. The amount is to be set forth separately in the balance sheet or in a note thereto. 17 Other assets. State separately, in the balance sheet or in a note thereto, any other item not properly classed in one of the preceding asset captions which is in excess of five percent to total assets. Any significant addition or deletion should be explained in a note. With respect to any significant deferred charge, state the policy for deferral and amortization. 18 Total assets. LIABILITIES2010 KPMG LLP, a Delaware limited liability partnership and the U.S. member firm of the KPMG network of independent member firms affiliated with KPMG International Cooperative (KPMG International), a Swiss entity. All rights reserved.

Accounting Disclosure Checklist - Annual (12/10) Page 21 of 290 Current Liabilities, when appropriate 19 Accounts and notes payable. a. State separately amounts payable to: 1 banks for borrowings; 2 factors or other financial institutions for borrowings; 3 holders of commercial paper; 4 trade creditors; 5 related parties; 6 underwriters, promoters, and employees (other than related parties); and 7 others. Amounts applicable to (1), (2) and (3) may be stated separately in the balance sheet or in a note thereto. b. The amount and terms of unused lines of credit for short-term financing shall be disclosed, if significant, in the notes to the financial statements. 1 Disclose commitment fees and conditions under which lines of credit may be withdrawn. 2 Disclose weighted-average interest rate on short-term borrowings outstanding as of the date of each balance sheet. 3 Separately identify the amounts that support a commercial paper or similar borrowing arrangement. 20 Other current liabilities. State separately, in the balance sheet or in a note thereto, any item in excess of 5 percent of total current liabilities. 21 Total current liabilities, when appropriate. Long-Term Debt. 22 Bonds, mortgages and other long-term debt, including capitalized leases. a. State separately, in the balance sheet or in a note thereto, each issue or type of obligation and such information as will indicate: 1 The general character of each type of debt including the rate of interest; 2 The date of maturity, or, if maturing serially, a brief indication of the serial maturities, such as maturing serially from 2000 to 2015; 3 if the payment of principal or interest is contingent, an appropriate indication of such contingency; 4 a brief indication of priority; and 5 if convertible, the basis. For amounts owed to related parties see Topic 850. b. The amount and terms (including commitment fees and the conditions under which commitments may be withdrawn) of unused commitments for long-term financing arrangements that would be disclosed under this rule if used shall be disclosed in the notes to the financial statements if significant. 23 Indebtedness to related partiesnoncurrent.2010 KPMG LLP, a Delaware limited liability partnership and the U.S. member firm of the KPMG network of independent member firms affiliated with KPMG International Cooperative (KPMG International), a Swiss entity. All rights reserved.

Accounting Disclosure Checklist - Annual (12/10) Page 22 of 290 24 Other liabilities. State separately, in the balance sheet or in a note thereto, any item not properly classified in one of the preceding liability captions which is in excess of 5 percent of total liabilities. 25 Commitments and contingent liabilities. 26 Deferred credits. State separately in the balance sheet amounts for (a) deferred income taxes, (b) deferred tax credits, and (c) material items of deferred income. > Current Liabilities Other Than Income Taxes 27 SEC-2003 AICPA National Conference on Current SEC Developments. If an enterprise structures an arrangement in which another party, typically a financial institution or one of its affiliates, pays its accounts payable in return for a promise to pay the other party at a future date, the liability should be recorded as a borrowing on which interest is recognized, not as accounts payable.

4

Subtopic 210-20: Balance Sheet--Offsetting Presentation >Right of Setoff 210-20-45-1. A right of setoff exists when all of the following conditions are met: a. Each of two parties owes the other determinable amounts. b. The reporting party has the right to set off the amount owed with the amount owed by the other party. c. The reporting party intends to set off. d. The right of setoff is enforceable at law. 210-20-45-2. A debtor having a valid right of setoff may offset the related asset and liability and report the net amount. > Offsetting Securities Against Taxes Payable 210-20-45-6. The offset of cash or other assets against the tax liability or other amounts owing to governmental bodies shall not be acceptable except in the circumstances described in paragraph 210-20-45-7. > Assurance that Right of Setoff Is Enforceable in a Bankruptcy 210-20-45-8. State laws about the right of setoff may provide results different from those normally provided by contract or as a matter of common law. Similarly, the U.S. Bankruptcy Code imposes restrictions on or prohibitions against the right of setoff in bankruptcy under certain circumstances. Legal constraints should be considered to determine whether the right of setoff is enforceable. 210-20-45-9. The phrase enforceable at law encompasses the idea that the right of setoff should be upheld in bankruptcy. The nature of support required for an assertion in financial statements that a right of setoff is enforceable at law is subject to a costbenefit constraint and depends on facts and circumstances. All of the information that is available, either supporting or questioning enforceability, should be considered. Offsetting is appropriate only if the available evidence, both positive


Accounting Disclosure Checklist - Annual (12/10) Page 23 of 290 and negative, indicates that there is reasonable assurance that the right of setoff would be upheld in bankruptcy. 5 Subtopic 215-10: Statement of Shareholder EquityOverallSEC Guidance > Changes in Each Caption of Other Stockholders' Equity 1 Regulation S-X Rule 3-04. The information in items (a) (c) below may be presented in the balance sheet, as a separate statement, or in the footnotes: a. Present an analysis of the changes in each caption of stockholders equity and noncontrolling interests presented in the balance sheet that reconciles the beginning balance to the ending balance for each period that an income statement is required with all significant reconciling items described by appropriate captions with contributions from and distribution to owners shown separately. b. State separately the adjustments to the balance at the beginning of the earliest period presented for items which were retroactively applied to periods prior to that period. c. State the amount of dividends per share and in the aggregate for each class of shares. Subtopic 220-10: Comprehensive IncomeOverall (Note: An entity that has no items of other comprehensive income in any period presented is not required to report comprehensive income.) Presentation > Reporting Comprehensive Income 220-10-45-4. This Subtopic does not require that an entity use the terms comprehensive income or other comprehensive income in its financial statements, even though those terms are used throughout this Subtopic. 220-10-45-5. All components of comprehensive income shall be reported in the financial statements in the period in which they are recognized. A total amount for comprehensive income shall be displayed in the financial statement where the components of other comprehensive income are reported. Paragraph 810-10-501A(a) (in this checklist) states that, if an entity has an outstanding noncontrolling interest (minority interest), amounts for both comprehensive income attributable to the parent and comprehensive income attributable to the noncontrolling interest in a less-than-wholly-owned subsidiary are reported on the face of the financial statement in which comprehensive income is presented in addition to presenting consolidated comprehensive income. >> Alternative Formats for Reporting Comprehensive Income 220-10-45-8. An entity shall display comprehensive income and its components in a financial statement that is displayed with the same prominence as other financial statements that constitute a full set of financial statements. This Subtopic requires that an entity display net income as a component of comprehensive income.2010 KPMG LLP, a Delaware limited liability partnership and the U.S. member firm of the KPMG network of independent member firms affiliated with KPMG International Cooperative (KPMG International), a Swiss entity. All rights reserved.

6

Accounting Disclosure Checklist - Annual (12/10) Page 24 of 290 Examples 1 through 2 (paragraphs 220-10-55-4 through 55-27) provide illustrations of the components of other comprehensive income and total comprehensive income being reported below the total for net income in a statement that reports results of operations, in a separate statement of comprehensive income that begins with net income, and in a statement of changes in equity. 220-10-45-9. Although this Subtopic does not require a specific format for displaying comprehensive income and its components, an entity is encouraged to display the components of other comprehensive income and total comprehensive income below the total for net income in a statement that reports results of operations or in a separate statement of comprehensive income that begins with net income. 220-10-45-10. Displaying comprehensive income in an income-statement-type format is superior to displaying it in a statement of changes in equity. 220-10-45-11. An entity may display components of other comprehensive income either net of related tax effects or before related tax effects with one amount shown for the aggregate income tax expense or benefit related to the total of other comprehensive income items. 220-10-45-12. An entity shall disclose the amount of income tax expense or benefit allocated to each component of other comprehensive income, including reclassification adjustments, either on the face of the statement in which those components are displayed or in notes to the financial statements. >> Reporting Other Comprehensive Income in the Equity Section of a Statement of Financial Position 220-10-45-14. The total of other comprehensive income for a period shall be transferred to a component of equity that is displayed separately from retained earnings and additional paid-in capital in a statement of financial position at the end of an accounting period. A descriptive title such as accumulated other comprehensive income shall be used for that component of equity. An entity shall disclose accumulated balances for each classification in that separate component of equity on the face of a statement of financial position, in a statement of changes in equity, or in notes to the financial statements. The classifications shall correspond to classifications used elsewhere in the same set of financial statements for components of other comprehensive income. > Reclassification Adjustments 220-10-45-17. An entity may display reclassification adjustments (See ASC paragraphs 220-10-45-15 and 45-16) on the face of the financial statement in which comprehensive income is reported, or it may disclose reclassification adjustments in the notes to the financial statements. Therefore, for all classifications of other comprehensive income, an entity may use either a gross display on the face of the financial statement or a net display on the face of the financial statement and disclose the gross change in the notes to the financial statements. If displayed gross, reclassification adjustments are reported separately from other changes in the respective balance; thus, the total change is reported as two amounts. If displayed net, reclassification adjustments are combined with other changes in the2010 KPMG LLP, a Delaware limited liability partnership and the U.S. member firm of the KPMG network of independent member firms affiliated with KPMG International Cooperative (KPMG International), a Swiss entity. All rights reserved.

Accounting Disclosure Checklist - Annual (12/10) Page 25 of 290 balance; thus, the total change is reported as a single amount. Gross and net displays are illustrated in Example 1 (see paragraph 220-10-55-4). An illustration of the calculation of reclassification adjustments for available-for-sale securities is included in Example 2 (see paragraph 220-10-55-18).

7

Subtopic 225-10: Income Statement--Overall Presentation 225-10-45-1. Net income shall reflect all items of profit and loss recognized during the period with the sole exception of error corrections as addressed in Topic 250. However, the requirement that net income be presented as one amount does not apply to the following entities that have developed income statements with formats different from those of the typical commercial entity: a. Investment companies b. Insurance entities c. Certain not-for-profit entities (NFPs). KPMG & Other Guidance 1. KARG Q&A 49.13. Insurance recoveries to the extent of costs and losses may be reported as a separate line item, reducing total operating expenses. 2. KARG 49.276; KARG 99.081. Insurance recoveries in excess of the costs and losses for the accounting period (the gain) and recoveries for business interruption (and similar) insurance may be presented as a gross amount on a separate line item between total operating expenses and operating income. 3. TPA 1200.04. When an entity incurs a net loss, the term statement of operations should be used, rather than statement of income.

8

Subtopic 225-10: Income StatementOverallSEC Guidance 1 S-X, Rule 5-03(b)(1). Include net sales and gross revenues and state separately: a. b. c. d. e. f. 2 Net sales of tangible products. Operating revenues of public utilities or others. Income from rentals. Service revenue. Other. If excise taxes comprise 1 percent or more of net sales and gross revenues, state the amount on the face of the statement.

S-X, Rule 5-03(b)(2). Costs and expenses applicable to each category of sales and revenues.


Accounting Disclosure Checklist - Annual (12/10) Page 26 of 290 a. Cost of tangible goods sold. b. Operating expenses of public utilities or others. c. Expenses applicable to rental income. d. Cost of services. e. Other. 3 4 5 6 7 S-X, Rule 5-03(b)(3). Other operating costs and expenses. S-X, Rule 5-03(b)(4). Selling, general, and administrative expenses. S-X, Rule 5-03(b)(5). Provision for doubtful accounts and notes. S-X, Rule 5-03(b)(6). Other general expenses. S-X, Rule 5-03(b)(7). Nonoperating income: Dividends, interest on securities, profits on securities (net of losses) and miscellaneous other income. (details may be shown in a footnote) S-X, Rule 5-03(b)(8). Interest and amortization of debt discount and expense S-X, Rule 5-03(b)(9). Nonoperating expenses: loss on securities (net of profits) and miscellaneous income deductions. (details may be shown in a footnote).

8 9

10 S-X, Rule 5-03(b)(10). Income or loss before income tax expense. 11 S-X, Rule 5-03(b)(11). Income tax expense. 12 S-X, Rule 5-03(b)(12). Equity in earnings of unconsolidated subsidiaries and 50 percent-or-less-owned persons. 13 S-X, Rule 5-03(b)(13). Income or from continuing operations. 14 S-X, Rule 5-03(b)(14). Discontinued operations 15 S-X, Rule 5-03(b)(15). Income or loss before extraordinary items and cumulative effects of changes in accounting principles. 16 S-X, Rule 5-03(b)(16). Extraordinary items, less applicable taxes. 17 S-X, Rule 5-03(b)(17). Cumulative effects of changes in accounting principles. 18 S-X, Rule 5-03(b)(18). Net income or loss. 19 S-X, Rule 5-03(b)(19). Net income attributable to the noncontrolling interest. 20 S-X, Rule 5-03(b)(20). Net income attributable to the controlling interest. 21 S-X, Rule 5-03(b)(21). Earnings per share data. 22 S-X, Rule 5-03(b). Disclosure in the financial statement or notes thereto, as appropriate: Interest income, including interest income on all securities within the scope of ASC Subtopic 325-40, including those classified as held-to-maturity, available for sale2010 KPMG LLP, a Delaware limited liability partnership and the U.S. member firm of the KPMG network of independent member firms affiliated with KPMG International Cooperative (KPMG International), a Swiss entity. All rights reserved.

Accounting Disclosure Checklist - Annual (12/10) Page 27 of 290 and trading securities. 23 S-X, Rule 5-03(b). Items less than 10 percent of the total of all items of a class may be combined. 24 SAB Topic 4-F. Equity of partnership distinguished between amounts attributable to each ownership class. 25 SAB Topic 11-B. Depreciation, depletion, and amortization should not be positioned in the income statement in a manner that presents income before depreciation. 26 SAB Topic 6-B. Income or loss applicable to common stock should be reported on the face of the income statement when it is materially different in quantitative terms from reported net income or loss or when it is indicative of significant trends or other qualitative considerations. 27 SAB Topic 11-A. Revenues representing operating subsidies from governmental entities should be reported in a separate line item in the income statements either under a revenue caption or as credit in the costs and expenses section. 28 SAB Topic 5.H. In periods prior to the adoption of Statement 160, for companies that had an accounting policy of recognizing in the income statement gains or losses arising from issuances by a subsidiary of its own stock, those gains and losses should be presented as a separate line item in the consolidated income statement without regard for materiality and clearly be designated as nonoperating income.

9

Subtopic 225-10: Income StatementExtraordinary and Unusual Items Presentation > Extraordinary Items > > Criteria for Presentation as Extraordinary Items 225-20-45-2. Extraordinary items are events and transactions that are distinguished by their unusual nature and by the infrequency of their occurrence. Thus, both of the following criteria shall be met to classify an event or transaction as an extraordinary item: a Unusual nature. The underlying event or transaction should possess a high degree of abnormality and be of a type clearly unrelated to, or only incidentally related to, the ordinary and typical activities of the entity, taking into account the environment in which the entity operates (see paragraph 22520-55-1). b Infrequency of occurrence. The underlying event or transaction should be of a type that would not reasonably be expected to recur in the foreseeable future, taking into account the environment in which the entity operates (see paragraph 225-20-55-2). 225-20-45-4. Certain gains and losses shall not be reported as extraordinary items (except as indicated in the following paragraph) because they are usual in nature or may be expected to recur as a consequence of customary and continuing


Accounting Disclosure Checklist - Annual (12/10) Page 28 of 290 business activities. Examples include all of the following: a. Write-down or write-off of receivables, inventories, equipment leased to others, deferred research and development costs, or other intangible assets b. Gains or losses from exchange or translation of foreign currencies, including those relating to major devaluations and revaluations c. Gains or losses on disposal of a component of an entity d. Other gains or losses from sale or abandonment of property, plant, or equipment used in the business e. Effects of a strike, including those against competitors and major suppliers f. Adjustment of accruals on long-term contracts. 225-20-45-5. In rare situations, an event or transaction may occur that clearly meets both criteria specified in paragraph 225-20-45-2 and thus gives rise to an extraordinary gain or loss that includes one or more of the gains or losses enumerated in the preceding paragraph. In these circumstances, gains or losses such as those in (a) and (d) of the preceding paragraph shall be included in the extraordinary item if they are a direct result of a major casualty (such as an earthquake), an expropriation, or a prohibition under a newly enacted law or regulation that clearly meets both criteria specified in paragraph 225-20-45-2. However, any portion of such losses which would have resulted from a valuation of assets on a going concern basis shall not be included in the extraordinary items. > > > Criteria Exceptions 225-20-45-8. As indicated in paragraph 225-20-15-2, the net effect of discontinuing the application of regulatory operations accounting addressed in Section 980-20-40 shall be recognized as an extraordinary item regardless of whether the criteria in paragraph 225-20-45-2 (in this checklist) are met. > > Presentation of Extraordinary Items 225-20-45-9. Extraordinary items shall be segregated from the results of ordinary operations and shown separately in the income statement, with disclosure of the nature and amounts thereof. 225-20-45-10. In the absence of discontinued operations (see paragraphs 205-20-45-1 through 45-5, which address the reporting of discontinued operations), the following main captions shall appear in an income statement if extraordinary items are reported: a. Income before extraordinary item b. Extraordinary items (less applicable income taxes of $__) (Note__) c. Net Income 225-20-45-11. The caption extraordinary items shall be used to identify separately the effects of events and transactions, other than the disposal of a component of an entity, that meet the criteria for classification as extraordinary as discussed in paragraphs 225-20-45-1 through 45-6. The nature of an extraordinary event or transaction and the principal items entering into the determination of an extraordinary gain or loss should be described.2010 KPMG LLP, a Delaware limited liability partnership and the U.S. member firm of the KPMG network of independent member firms affiliated with KPMG International Cooperative (KPMG International), a Swiss entity. All rights reserved.

Accounting Disclosure Checklist - Annual (12/10) Page 29 of 290 225-20-45-12. Earnings per share (EPS) data for extraordinary items shall be presented either on the face of the income statement or in the related notes, as prescribed by Section 260-10-45. > > Adjustment of Amounts Reported in Prior Periods 225-20-45-13. Circumstances attendant to extraordinary items frequently require estimates, for example, of associated costs and occasionally of associated revenue, based on judgment and evaluation of the facts known at the time of first accounting for the event. Each adjustment in the current period of an element of an extraordinary item that was reported in a prior period shall be classified separately in the current period in the same manner as the original item. > Presentation of Unusual or Infrequently Occurring Items 225-20-45-16. A material event or transaction that is unusual in nature or occurs infrequently but not both, and therefore does not meet both criteria for classification as an extraordinary item, shall be reported as a separate component of income from continuing operations. The nature and financial effects of each event or transaction shall be disclosed on the face of the income statement or, alternatively, in notes to financial statements. Gains or losses of a similar nature that are not individually material shall be aggregated. Such items shall not be reported on the face of the income statement net of income taxes or in any other manner that may imply that they are extraordinary items. Similarly, the EPS effects of those items shall not be presented on the face of the income statement. KPMG & Other Guidance > Natural Disasters 1 TPA 5400.05, ASC paragraph 225-20-45-2 . A natural disaster that is reasonably expected to re-occur would not be classified as an extraordinary event. For example, a hurricane in an area that is susceptible to hurricanes is not an extraordinary event..

a. Entities should provide additional disclosures to enable financial statement users to evaluate the financial effects of a natural disaster and related events. Additional disclosures may include: 1 2 The nature and amount of losses recognized as a result of the natural disaster and the amounts of any related insurance recoveries. A description of contingencies from the event that have not yet been recognized in the financial statements but that are reasonably expected to impact the entitys financial statements (for example, future losses and costs and probable future insurance recoveries). The amount of exposure to credit loss and how that risk was evaluated. The potential loss of customer base and the related revenue recognition. Any significant uncertainties in the amounts recognized in the financial statements.

3 4 5

10

Subtopic 225-30: Income StatementBusiness Interruption Insurance Disclosure


Accounting Disclosure Checklist - Annual (12/10) Page 30 of 290 225-30-50-1. The following information shall be disclosed in the notes to financial statements in the period(s) in which business interruption insurance recoveries are recognized: a. The nature of the event resulting in business interruption losses b. The aggregate amount of business interruption insurance recoveries recognized during the period and the line item(s) in the statement of operations in which those recoveries are classified (including amounts reported as an extraordinary item pursuant to Subtopic 225-20).

11

Subtopic 230-10: Statement of Cash FlowsOverall Presentation > Form and Content 230-10-15-3. A business entity or NFP that provides a set of financial statements that reports both financial position and results of operations shall also provide a statement of cash flows for each period for which results of operations are provided. > > Cash and Cash Equivalents 230-10-45-4. A statement of cash flows shall explain the change during the period in cash and cash equivalents. > > Gross and Net Cash Flows 230-10-45-9. Providing that the original maturity of the asset or liability is three months or less, cash receipts and payments pertaining to any of the following qualify for net reporting: a. Investments (other than cash equivalents) b. Loans receivable c. Debt. For purposes of this paragraph, amounts due on demand are considered to have maturities of three months or less. For convenience, credit card receivables of financial services operationsgenerally, receivables resulting from cardholder charges that may, at the cardholders option, be paid in full when first billed, usually within one month, without incurring interest charges and that do not stem from the entitys sale of goods or servicesalso are considered to be loans with original maturities of three months or less. > Classification > > Cash Flows from Investing Activities 230-10-45-11. Cash flows from purchases, sales, and maturities of available-for-sale securities shall be classified as cash flows from investing activities and reported gross in the statement of cash flows.


Accounting Disclosure Checklist - Annual (12/10) Page 31 of 290 230-10-45-12. All of the following are cash inflows from investing activities: a. Receipts from collections or sales of loans made by the entity and of other entities debt instruments (other than cash equivalents and certain debt instruments that are acquired specifically for resale as discussed in paragraph 230-10-45-21 in this checklist) that were purchased by the entity b. Receipts from sales of equity instruments of other entities (other than certain equity instruments carried in a trading account as described in paragraph 23010-45-19 in this checklist) and from returns of investment in those instruments c. Receipts from sales of property, plant, and equipment and other productive assets d. [not used] e. Receipts from sales of loans that were not specifically acquired for resale. That is, if loans were acquired as investments, cash receipts from sales of those loans shall be classified as investing cash inflows regardless of a change in the purpose for holding those loans. For purposes of this paragraph, receipts from disposing of loans, debt or equity instruments, or property, plant, and equipment include directly related proceeds of insurance settlements, such as the proceeds of insurance on a building that is damaged or destroyed. 230-10-45-13. All of the following are cash outflows for investing activities: a. Disbursements for loans made by the entity and payments to acquire debt instruments of other entities (other than cash equivalents and certain debt instruments that are acquired specifically for resale as discussed in paragraph 230-10-45-21) b. Payments to acquire equity instruments of other entities (other than certain equity instruments carried in a trading account as described in paragraphs 230-10-45-18 through 45-19) c. Payments at the time of purchase or soon before or after purchase to acquire property, plant, and equipment and other productive assets, including interest capitalized as part of the cost of those assets. Generally, only advance payments, the down payment, or other amounts paid at the time of purchase or soon before or after purchase of property, plant, and equipment and other productive assets are investing cash outflows. However, incurring directly related debt to the seller is a financing transaction (see paragraphs 230-10-4514 through 45-15 in this checklist), and subsequent payments of principal on that debt thus are financing cash outflows. > > Cash Flows from Financing Activities 230-10-45-14. All of the following are cash inflows from financing activities: a. Proceeds from issuing equity instruments2010 KPMG LLP, a Delaware limited liability partnership and the U.S. member firm of the KPMG network of independent member firms affiliated with KPMG International Cooperative (KPMG International), a Swiss entity. All rights reserved.

Accounting Disclosure Checklist - Annual (12/10) Page 32 of 290 b. Proceeds from issuing bonds, mortgages, notes, and from other short- or longterm borrowing c. Receipts from contributions and investment income that by donor stipulation are restricted for the purposes of acquiring, constructing, or improving property, plant, equipment, or other long-lived assets or establishing or increasing a permanent endowment or term endowment d. Proceeds received from derivative instruments that include financing elements at inception, whether the proceeds were received at inception or over the term of the derivative instrument, other than a financing element inherently included in an at-the-market derivative instrument with no prepayments e. Cash retained as a result of the tax deductibility of increases in the value of equity instruments issued under share-based payment arrangements that are not included in the cost of goods or services that is recognizable for financial reporting purposes. For this purpose, excess tax benefits shall be determined on an individual award (or portion thereof) basis. 230-10-45-15. All of the following are cash outflows for financing activities: a. Payments of dividends or other distributions to owners, including outlays to reacquire the entitys equity instruments. b. Repayments of amounts borrowed. c. Other principal payments to creditors who have extended long-term credit. See paragraph 230-10-45-13(c), which indicates that most principal payments on seller-financed debt directly related to a purchase of property, plant, and equipment or other productive assets are financing cash outflows. d. Distributions to counterparties of derivative instruments that include financing elements at inception, other than a financing element inherently included in an at-the-market derivative instrument with no prepayments. The distributions may be either at inception or over the term of the derivative instrument. e. Payments for debt issue costs. > > Cash Flows from Operating Activities 230-10-45-16. All of the following are cash inflows from operating activities: a. Cash receipts from sales of goods or services, including receipts from collection or sale of accounts and both short- and long-term notes receivable from customers arising from those sales. The term goods includes certain loans and other debt and equity instruments of other entities that are acquired specifically for resale, as discussed in paragraph 230-10-45-21. b. Cash receipts from returns on loans, other debt instruments of other entities, and equity securitiesinterest and dividends. c. All other cash receipts that do not stem from transactions defined as investing or financing activities, such as amounts received to settle lawsuits; proceeds of insurance settlements except for those that are directly related to investing2010 KPMG LLP, a Delaware limited liability partnership and the U.S. member firm of the KPMG network of independent member firms affiliated with KPMG International Cooperative (KPMG International), a Swiss entity. All rights reserved.

Accounting Disclosure Checklist - Annual (12/10) Page 33 of 290 or financing activities, such as from destruction of a building; and refunds from suppliers. 230-10-45-17. All of the following are cash outflows for operating activities: a. Cash payments to acquire materials for manufacture or goods for resale, including principal payments on accounts and both short- and long-term notes payable to suppliers for those materials or goods. The term goods includes certain loans and other debt and equity instruments of other entities that are acquired specifically for resale, as discussed in paragraph 230-10-45-21. b. Cash payments to other suppliers and employees for other goods or services. c. Cash payments to governments for taxes, duties, fines, and other fees or penalties and the cash that would have been paid for income taxes if increases in the value of equity instruments issued under share-based payment arrangements that are not included in the cost of goods or services recognizable for financial reporting purposes also had not been deductible in determining taxable income. (This is the same amount reported as a financing cash inflow pursuant to paragraph 230-10-45-14(e).) d. Cash payments to lenders and other creditors for interest. e. Cash payment made to settle an asset retirement obligation. f. All other cash payments that do not stem from transactions defined as investing or financing activities, such as payments to settle lawsuits, cash contributions to charities, and cash refunds to customers.

> > Acquisitions and Sales of Certain Securities and Loans 230-10-45-19. Cash receipts and cash payments resulting from purchases and sales of securities classified as trading securities as discussed in Topic 320 shall be classified pursuant to this Topic based on the nature and purpose for which the securities were acquired. 230-10-45-20. Cash receipts and cash payments resulting from purchases and sales of other securities and other assets shall be classified as operating cash flows if those assets are acquired specifically for resale and are carried at market value in a trading account. 230-10-45-21. Some loans are similar to securities in a trading account in that they are originated or purchased specifically for resale and are held for short periods of time. Cash receipts and cash payments resulting from acquisitions and sales of loans also shall be classified as operating cash flows if those loans are acquired specifically for resale and are carried at market value or at the lower of cost or market value. For example, mortgage loans held for sale are required to be reported at the lower of cost or market value in accordance with Topic 948. > > More than One Class of Cash Flows 230-10-45-22. Certain cash receipts and payments may have aspects of more than one class of cash flows. For example, a cash payment may pertain to an item that could be considered either inventory or a productive asset. If so, the appropriate2010 KPMG LLP, a Delaware limited liability partnership and the U.S. member firm of the KPMG network of independent member firms affiliated with KPMG International Cooperative (KPMG International), a Swiss entity. All rights reserved.

Accounting Disclosure Checklist - Annual (12/10) Page 34 of 290 classification shall depend on the activity that is likely to be the predominant source of cash flows for the item. > > Reporting Operating, Investing, and Financing Activities 230-10-45-24. A statement of cash flows for a period shall report net cash provided or used by operating, investing, and financing activities and the net effect of those flows on cash and cash equivalents during the period in a manner that reconciles beginning and ending cash and cash equivalents. Separate disclosure of cash flows pertaining to extraordinary items or discontinued operations reflected in those categories is not required. An entity that nevertheless chooses to report separately operating cash flows of discontinued operations shall do so consistently for all periods affected, which may include periods long after sale or liquidation of the operation. 230-10-45-25. In reporting cash flows from operating activities, entities are encouraged to report major classes of gross cash receipts and gross cash payments and their arithmetic sumthe net cash flow from operating activities (the direct method). (Paragraphs 230-10-55-1 through 55-4 and paragraph 230-10-55-21, respectively, discuss and illustrate a method by which those major classes of gross operating cash receipts and payments generally may be determined indirectly.) Entities that do so shall, at a minimum, separately report the following classes of operating cash receipts and payments: a. Cash collected from customers, including lessees, licensees, and the like b. Interest and dividends received. Interest and dividends that are donor restricted for long-term purposes as included in the list of financing activities and paragraph 230-10-45-14(c) are not part of operating cash receipts. c. Other operating cash receipts, if any d. Cash paid to employees and other suppliers of goods or services, including suppliers of insurance, advertising, and the like e. Interest paid f. Income taxes paid and separately, the cash that would have been paid for income taxes if increases in the value of equity instruments issued under sharebased payment arrangements that are not included as a cost of goods or services recognizable for accounting purposes also had not been deductible in determining taxable income (see subparagraph 230-10-45-14(e) in this checklist)

g. Other operating cash payments, if any. Entities are encouraged to provide further breakdowns of operating cash receipts and payments that they consider meaningful and feasible. 230-10-45-26. Except for those items that qualify for net reporting (see paragraph 23010-45-9), investing cash inflows and outflows and financing cash inflows and outflows should be reported separately. > > Cash Receipts and Payments Related to Hedging Activities2010 KPMG LLP, a Delaware limited liability partnership and the U.S. member firm of the KPMG network of independent member firms affiliated with KPMG International Cooperative (KPMG International), a Swiss entity. All rights reserved.

Accounting Disclosure Checklist - Annual (12/10) Page 35 of 290 230-10-45-27. Generally, each cash receipt or payment is to be classified according to its nature without regard to whether it stems from an item intended as a hedge of another item. > Reconciliation of Net Income and Net Cash Flow from Operating Activities 230-10-45-28. Entities that choose not to provide information about major classes of operating cash receipts and payments by the direct method as encouraged in paragraph 230-10-45-25 (in this checklist) shall determine and report the same amount for net cash flow from operating activities indirectly by adjusting net income of a business entity or change in net assets of a not-for-profit entity (NFP) to reconcile it to net cash flow from operating activities (the indirect or reconciliation method). 230-10-45-29. The reconciliation of net income of a business entity or change in net assets of an NFP to net cash flow from operating activities described in paragraph 230-10-45-28 (in this checklist) shall be provided regardless of whether the direct or indirect method of reporting net cash flow from operating activities is used. That reconciliation shall separately report all major classes of reconciling items. 230-10-45-30. If the direct method of reporting net cash flow from operating activities is used, the reconciliation of net income of a business entity or change in net assets of an NFP to net cash flow from operating activities shall be provided in a separate schedule. 230-10-45-31. If the indirect method is used, the reconciliation may be either reported within the statement of cash flows or provided in a separate schedule, with the statement of cash flows reporting only the net cash flow from operating activities. 230-10-45-32. If the reconciliation is presented in the statement of cash flows, all adjustments to net income of a business entity or change in net assets of an NFP to determine net cash flow from operating activities shall be clearly identified as reconciling items. > Foreign Currency 830-230-45-1. A statement of cash flows of an entity with foreign currency transactions or foreign operations shall report the reporting currency equivalent of foreign currency cash flows using the exchange rates in effect at the time of the cash flows. An appropriately weighted average exchange rate for the period may be used for translation if the result is substantially the same as if the rates at the dates of the cash flows were used. (That is, paragraph 830-30-45-3 applies to cash receipts and cash payments.) The statement of cash flows shall report the effect of exchange rate changes on cash balances held in foreign currencies as a separate part of the reconciliation of the change in cash and cash equivalents during the period outside of operating, investing, and financing activities. See Example 1 (paragraph 830230-55-1) for an illustration of this guidance. Disclosure > Cash Equivalents Policy 230-10-50-1. An entity shall disclose its policy for determining which items are treated as cash equivalents. Any change to that policy is a change in accounting principle2010 KPMG LLP, a Delaware limited liability partnership and the U.S. member firm of the KPMG network of independent member firms affiliated with KPMG International Cooperative (KPMG International), a Swiss entity. All rights reserved.

Accounting Disclosure Checklist - Annual (12/10) Page 36 of 290 that shall be effected by restating financial statements for earlier years presented for comparative purposes. > Interest and Income Taxes Paid 230-10-50-2. If the indirect method is used, amounts of interest paid (net of amounts capitalized) and income taxes paid during the period shall be disclosed. > Noncash Investing and Financing Activities 230-10-50-3. Information about all investing and financing activities of an entity during a period that affect recognized assets or liabilities but that do not result in cash receipts or cash payments in the period shall be disclosed. Those disclosures may be either narrative or summarized in a schedule, and they shall clearly relate the cash and noncash aspects of transactions involving similar items. 230-10-50-5. Some transactions are part cash and part noncash; only the cash portion shall be reported in the statement of cash flows. 230-10-50-6. If there are only a few such noncash transactions, it may be convenient to include them on the same page as the statement of cash flows. Otherwise, the transactions may be reported elsewhere in the financial statements, clearly referenced to the statement of cash flows. SEC Guidance 1 SEC Staff Speech If an entity that chooses to present separately cash flows from discontinued operations, the presentation must either: a. Combine cash flows from discontinued operations with cash flows from continuing operations within each category b. Identify cash flows from discontinued operations within each category, or c. Present cash flows from discontinued operations separately with disclosure of operating, investing, and financing activities. 2 SEC-Current Accounting and Disclosure Issues in the Division

External Primary ADC PDF

Documents

Transcript of External Primary ADC PDF