SAE Annual Report 2011 - 43

SAE INTERNATIONAL
Notes to the Financial Statements (Continued) Note 1 - Summary of Significant Accounting Policies (Continued) O. Recent Accounting Pronouncements (Continued)

In December 2010, the FASB issued updated guidance on the two-step test required for impairment of goodwill and other intangible assets. When a goodwill impairment test is performed an entity must assess whether the carrying amount of a reporting unit exceeds its fair value. If it does, an entity must perform an additional test to determine whether goodwill has been impaired and to calculate the amount of that impairment. The amendments in this update modify Step 1 of the goodwill impairment test for reporting units with zero or negative carrying amounts. For those reporting units, an entity is required to perform Step 2 of the goodwill impairment test if it is more likely than not that a goodwill impairment exists. In determining whether it is more likely than not that an impairment of goodwill exists, an entity should consider whether there are any adverse qualitative factors indicating that impairment may exist. The amendments in this update are effective for fiscal years, and interim periods within those years, beginning on or after December 15, 2011. Early adoption is not permitted. SAE does not expect this guidance to have a material impact on its financial statements. P. Consideration of Subsequent Events

The Financial Audit Committee of the Board of Directors evaluated subsequent events and transactions for potential recognition or disclosure in the financial statements through March 14, 2012, the day the financial statements were approved and authorized for issue. Q. Reclassifications

Certain reclassifications have been made to the 2010 financial statements to conform with the 2011 presentation. In addition, during 2011, SAE made reclassifications to its net assets based upon management’s renewed discussion with donors and review of historical information. This information provided additional clarification as to the donor’s intent. The reclassification is reflected on the statement of activities and changes in net assets as an adjustment to the 2011 beginning net assets.

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SAE Annual Report 2011

Table of Contents for the Digital Edition of SAE Annual Report 2011