2. Summary of Significant Accounting Policies
The accounting policies used in preparing these financial statements are consistent with the accounting policies described in our Annual Report on Form 10-K for the fiscal year ended September 30, 2011, which was filed with the SEC on November 28, 2011. The following represent additions and changes to significant accounting policies in the previously filed Form 10-K.
Recently Adopted and Issued Accounting Standards
In May 2011, the FASB issued Amendments to Achieve Common Fair Value Measurement and Disclosure Requirements in U.S. GAAP and IFRSs (Topic 820, Fair Value Measurement). The new standard provides updates to measurement guidance and enhanced disclosure requirements. The most significant change is an expansion of the information required for Level 3 measurements based on unobservable inputs. The new disclosure requirements are effective for Hillenbrand in our second quarter beginning January 1, 2012. We do not expect that the adoption of this standard will have a significant impact on our consolidated financial statements.
In June 2011, the FASB issued an accounting standards update titled Presentation of Comprehensive Income. This update eliminates the current option to report other comprehensive income and its components in the statement of changes in equity. An entity can elect to present items of net income and other comprehensive income in one continuous statement or in two separate consecutive statements. Each component of net income and each component of other comprehensive income, together with totals for comprehensive income and its two parts, net income and other comprehensive income, must be displayed under either alternative. The new disclosure requirements are effective for Hillenbrand in our fiscal year beginning October 1, 2012.
In September 2011, the FASB issued an accounting standards update titled Intangibles Goodwill and Other: Testing Goodwill for Impairment. This update gives the option of performing a qualitative assessment to determine whether it is more likely than not that the fair value of a reporting unit is less than its carrying amount and, in some cases, skip the two-step impairment test. This standard is effective for Hillenbrand for our fiscal year beginning October 1, 2012, and early adoption is permitted. We do not expect that the adoption of this standard will have a significant impact on our consolidated financial statements.