The accounts of Philadep are included as discontinued operations. No. 133, Accounting for Derivative Instruments and Hedging Activity . It requires that an entity recognize all derivatives as either assets or liabilities in the statement of financial position and measure those instruments at fair value. If certain conditions are met, a derivative may be specifically designated as a hedge. 133 is effective for all fiscal quarters of fiscal years beginning after June 15, 1999.
Earlier application is permitted only as of the beginning of any fiscal quarter.
The adoption of SFAS No. 133 will not have a material impact on the Exchange's consolidated financial position or results of operations. The preparation of financial statements in conformity with generally accepted accounting principles requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosures of contingent assets and liabilities at the date of the financial statements, and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates. All highly liquid investments with a maturity of three months or less are considered cash equivalents. Investments Investments classified as available for sale are stated at market value, and any net unrealized gain or loss is reported in a separate component of equity of members, net of deferred income taxes.