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59
guidance on the treatment of net income and losses
attributable to the noncontrolling interest and changes in
ownership interests in a subsidiary and requires additional
disclosures that identify and distinguish between the interests
of the controlling and noncontrolling owners. The Company
will adopt the standard in the first quarter of fiscal 2010 and
does not expect the adoption of SFAS 160 to have a material
impact on the Company’s results of operations and financial
condition.
Determination of the Useful Life of Intangible Assets
In April 2008, the FASB issued FSP SFAS 142-3 Determination
of the Useful Life of Intangible Assets (“FSP SFAS 142-3”). FSP
SFAS 142-3 amends the factors that should be considered
in developing renewal or extension assumptions used to
determine the useful life of the recognized intangible asset
under SFAS 142, Goodwill and Other Intangible Assets. The
intent of the guidance is to improve the consistency between
the useful life of a recognized intangible asset under SFAS
142 and the period of expected cash flows used to measure
the fair value of the asset under SFAS 141(R). For a recognized
intangible asset, an entity will be required to disclose
information that enables users of the financial statements
to assess the extent to which expected future cash flows
associated with the asset are affected by the entity’s intent
and/or ability to renew or extend the arrangement. FSP SFAS
142-3 is effective for fiscal years beginning after December
15, 2008. The Company will adopt the standard in the first
quarter of fiscal 2010 and does not expect the adoption
will have a material impact on the Company’s results of
operations and financial condition.
International Financial Reporting Standards
In November 2008, the SEC announced a proposed
roadmap for comment regarding the potential use by U.S.
issuers of financial statements prepared in accordance with
International Financial Reporting Standards (“IFRS”). IFRS is
a comprehensive series of accounting standards published
by the International Accounting Standards Board. Under
the proposed roadmap, the Company could be required
to prepare financial statements and accompanying notes
in accordance with IFRS in fiscal 2015. The SEC will make a
determination in 2011 regarding the mandatory adoption
of IFRS. The Company is currently assessing the impact
that this proposed change would have on the consolidated
financial statements, accompanying notes and disclosures,
and will continue to monitor the development of the potential
implementation of IFRS.
and requires enhanced disclosures about why an entity
uses derivative instruments, how derivative instruments are
accounted for under SFAS 133 and how derivative instruments
and related hedged items affect an entity’s financial position,
financial performance and cash flows. The Company adopted
SFAS 161 in the fourth quarter of fiscal 2009 with the required
additional disclosures presented in note 17.
The Hierarchy of Generally Accepted Accounting Principles
In May 2008, the FASB issued SFAS 162 The Hierarchy of
Generally Accepted Accounting Principles (“SFAS 162”).
SFAS 162 outlines the order of authority for the sources
of accounting principles. SFAS 162 is effective 60 days
following the Securities and Exchange Commission’s (“SEC”)
approval of the Public Company Accounting Oversight
Board (“PCAOB”) amendments to AU Section 411, The
Meaning of Present Fairly in Conformity With Generally
Accepted Accounting Principles. The SEC approved the
PCAOB amendments to AU Section 411 in September 2008,
therefore SFAS 162 became effective for mid November 2008.
The implementation of SFAS 162 did not have a material
impact on the Company’s results of operations and financial
condition.
3. RECENTLY ISSUED PRONOUNCEMENTS
Business Combinations
In December 2007, the FASB issued SFAS 141(R) Business
Combinations (“SFAS 141(R)”). SFAS 141(R) replaces SFAS 141
Business Combinations (“SFAS 141”). SFAS 141(R) is broader
in scope than SFAS 141 which applied only to business
combinations in which control was obtained by transferring
consideration. SFAS 141(R) applies to all transactions and
other events in which one entity obtains control over one
or more other businesses. SFAS 141(R) is effective for fiscal
years beginning after December 15, 2008 and the Company
will adopt the standard in the first quarter of fiscal 2010
and its effects are not material to the Company’s results
of operations and financial condition, as of the filing date,
including an acquisition subsequent to year end.
Noncontrolling Interests in Consolidated Financial
Statements – an amendment of ARB 51
In December 2007, the FASB issued SFAS 160 Noncontrolling
Interests in Consolidated Financial Statements – an
amendment of ARB 51 (“SFAS 160”). SFAS 160 requires that
the noncontrolling interest in the equity of a subsidiary be
accounted for and reported as equity, provides revised