Avid 2006 Annual Report Download - page 58

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48
In March 2006, the FASB issued SFAS No. 156, “Accounting for Servicing of Financial Assets,” an amendment to
FASB Statement No. 140. SFAS No. 156 requires recognition of a servicing asset or servicing liability whenever an
entity enters into certain service agreements which result in an obligation to service a financial asset, and requires
that servicing assets and servicing liabilities be recognized at fair value, if practicable. SFAS No. 156 will be effective
for fiscal years beginning after September 15, 2006, or January 1, 2007 for Avid. Adoption of SFAS No. 156 will not
have a material impact on our financial position or results of operations.
In February 2006, the FASB issued SFAS No. 155, “Accounting for Certain Hybrid Financial Instruments,” an
amendment to FASB Statements No. 133 and 140. SFAS No. 155 permits fair value remeasurement for any hybrid
financial instrument that contains an embedded derivative that otherwise would require bifurcation. SFAS No. 155
will be effective for fiscal years beginning after September 15, 2006, or January 1, 2007 for Avid. As of December 31,
2006, we did not have any hybrid financial instruments subject to the fair value election of SFAS No. 155.