Barnes and Noble 2010 Annual Report Download - page 41

Download and view the complete annual report

Please find page 41 of the 2010 Barnes and Noble annual report below. You can navigate through the pages in the report by either clicking on the pages listed below, or by using the keyword search tool below to find specific information within the annual report.

Page out of 76

  • 1
  • 2
  • 3
  • 4
  • 5
  • 6
  • 7
  • 8
  • 9
  • 10
  • 11
  • 12
  • 13
  • 14
  • 15
  • 16
  • 17
  • 18
  • 19
  • 20
  • 21
  • 22
  • 23
  • 24
  • 25
  • 26
  • 27
  • 28
  • 29
  • 30
  • 31
  • 32
  • 33
  • 34
  • 35
  • 36
  • 37
  • 38
  • 39
  • 40
  • 41
  • 42
  • 43
  • 44
  • 45
  • 46
  • 47
  • 48
  • 49
  • 50
  • 51
  • 52
  • 53
  • 54
  • 55
  • 56
  • 57
  • 58
  • 59
  • 60
  • 61
  • 62
  • 63
  • 64
  • 65
  • 66
  • 67
  • 68
  • 69
  • 70
  • 71
  • 72
  • 73
  • 74
  • 75
  • 76

In October 2009, the FASB issued ASU No. 2009-14,
Software (ASC 985) – Certain Revenue Arrangements That
Include Software Elements (ASU 2009-14). ASU 2009-14
amends the scope of software revenue guidance in ASC
985-605, Software-Revenue Recognition, affecting vendors
that sell or lease tangible products in an arrangement that
contains software that is more than incidental to the tan-
gible product as a whole. ASU No. 2009-14 does not affect
software revenue arrangements that do not include tangible
products. They also do not affect software revenue arrange-
ments that include services if the software is essential to
the functionality of those services.
ASU 2009-13 and ASU 2009-14 are effective prospectively
for revenue arrangements entered into or materially modi-
fied in fiscal years beginning on or after June 15, 2010, and
must be adopted in the same period using the same transi-
tion method. If adoption is elected in a period other than
the beginning of a fiscal year, the amendments in these
standards must be applied retrospectively to the beginning
of the fiscal year. Full retrospective application of these
amendments to prior fiscal years is optional. Early adop-
tion of these standards may be elected. The Company has
early adopted ASU 2009-13 and ASU 2009-14 at November
1, 2009. See Note 1 for the Company’s revenue recogni-
tion policy. Retrospective application does not apply to
the Company because the initial sales of products that
contain multiple elements were sold in the fiscal quarter of
adoption.
In January 2010, the FASB issued ASU No. 2010-06, Fair
Value Measurements and Disclosures (Topic ) — Improving
Disclosures about Fair Value Measurements (ASU 2010-06).
ASU 2010-06 requires new disclosures regarding transfers
in and out of the Level 1 and Level 2 fair value measure-
ments and activity within Level 3 fair value measurements
and clarifies existing disclosures of inputs and valuation
techniques for Level 2 and Level 3 fair value measurements.
ASU 2010-06 also includes conforming amendments to
employers’ disclosures about postretirement benefit plan
assets. The new disclosures and clarifications of existing
disclosures are effective for interim and annual reporting
periods beginning after December 15, 2009, except for the
disclosure of activity within Level 3 fair value measure-
ments, which is effective for fiscal years beginning after
December 15, 2010 and for interim periods within those
years. The Company adopted ASU 2010-06 at January 31,
2010 and the adoption had no impact on the Company’s
financial position, results of operations and cash flows.
In February 2010, the FASB issued ASU No. 2010-09,
Subsequent Events (ASU 2010-09) – Amendments to Certain
Recognition and Disclosure Requirements. ASU 2010-09
amends the April 2009 accounting and disclosure guid-
ance for subsequent events. The updated guidance revised
certain terms and definitions of the original guidance
and requires the Company to evaluate subsequent events
through the date the financial statements are issued, rather
than the date the financial statements are available to be
issued. This amendment is effective immediately.
2010 Annual Report 39