Canon 2008 Annual Report Download - page 74

72
Develo
p
ment Activities” (“EITF 07-3”). EITF 07-3 re
q
uires that
nonrefundable advance payments for goods or services that will be
used or rendered
f
or
f
uture research and development activities
be de
f
erred and capitalized and reco
g
nized as an expense as the
related
g
oods are delivered or the related services are performed.
EITF 07-3 is effective, on a prospective basis, for fi scal years
beginning after December 15, 2007 and was adopted by Canon
in the
fi
rst quarter be
g
innin
g
Januar
y
1, 2008. The adoption o
f
EITF 07-3
d
i
d
not
h
ave a materia
l
impact on Canon’s conso
l
i
d
ate
d
results of o
p
erations and fi nancial condition
.
In December 2007, the FASB issued SFAS No. 141
(
revised
2007
)
, “Business Combinations”
(
“SFAS 141R”
)
. SFAS 141R
establishes principles and requirements
f
or how an acquirer rec-
o
g
nizes and measures in its fi nancial statements the identifi able
assets acquire
d
, t
h
e
l
ia
b
i
l
ities assume
d
, any noncontro
ll
ing interest
in the acquiree and the goodwill acquired in a business combina
-
tion. SFAS 141R also establishes disclosure requirements to enable
the evaluation o
f
the nature and
fi
nancial e
ff
ects o
f
the business
combination. SFAS 141R is effective for fi scal years beginning on
or after December 15, 2008 and is required to be adopted by
Canon
f
or any business combinations with an acquisition date
on or a
f
ter Januar
y
1, 2009. The impact o
f
the adoption o
f
SFAS 141R on Canon’s consolidated results of o
p
erations and
fi nancial condition will be largely dependent on the size and
nature of the business combinations completed after the
adoption o
f
this statement
.
In Decem
b
er 2007
,
t
h
e FASB issue
d
SFAS No. 160
,
“Noncontro
ll
ing Interests in Conso
l
i
d
ate
d
Financia
l
Statements, an
amendment of ARB No. 51”
(
“SFAS 160”
)
. SFAS 160 establishes
accounting and reporting standards
f
or ownership interests in
subsidiaries held b
y
parties other than the parent, the amount o
f
conso
l
i
d
ate
d
net income attri
b
uta
bl
e to t
h
e
p
arent an
d
to t
h
e
noncontro
ll
ing interest, c
h
anges in a parent’s owners
h
ip interest,
and the valuation of retained noncontrolling equity investments
when a subsidiar
y
is deconsolidated. SFAS 160 also establishes
disclosure requirements that clearl
y
identi
fy
and distin
g
uish
between the interests of the
p
arent and the interests of the
noncontrolling owners. SFAS 160 is effective for fi scal years
beginning on or a
f
ter December 15, 2008 on a prospective basis,
except
f
or certain presentation and disclosure requirements,
which will be applied retrospectivel
y
for all periods presented,
and is required to be adopted by Canon in the fi rst quarter
beginning January 1, 2009. The adoption of SFAS 160 will
impact the presentation o
f
Canon’s consolidated balance sheets
and consolidated statements of income; however, it will not have
a material im
p
act on Canon’s consolidated results of o
p
erations
and
fi
nancial condition
.
In March 2008
,
the FASB issued SFAS No. 161
,
“Disclosures
a
b
out Derivative Instruments an
d
He
dg
in
g
Activities, an amen
d-
ment of FASB Statement No. 133”
(
“SFAS 161”
)
. SFAS 161
amends and expands the current disclosures required by SFAS
No. 133, “Accountin
g
f
or Derivative Instruments and Hed
g
in
g
Activities” (“SFAS 133”). SFAS 161 requires entities to provide
greater transparency a
b
out
h
ow an
d
w
h
y an entity uses
d
erivative
instruments, how derivative instruments and related hedged
items are accounted
f
or under SFAS 133 and its interpretations,
and how derivative instruments and related hed
g
ed items a
ff
ect
an entit
y
’s fi nancial position, result of operations and cash fl ows.
SFAS 161
d
oes not c
h
ange t
h
e existing stan
d
ar
d
s re
l
ative to
recognition and measurement of derivative instruments and
hed
g
in
g
activities. SFAS 161 is e
ff
ective
f
or
fi
nancial statements
issued
f
or
fi
scal
y
ears and interim periods be
g
innin
g
a
f
ter
Novem
b
er 15, 2008 an
d
is require
d
to
b
e a
d
opte
d
b
y Canon in
the fi rst quarter beginning January 1, 2009. The adoption of
SFAS 161 will not have an impact on Canon’s consolidated
results o
f
operations and
fi
nancial condition
.
In December 2008, the FASB issued FSP FAS No. 132(R)-1,
“Employers’ Disclosures about Postretirement Benefi t Plan Assets”
(
“FSP 132R-1”
)
. FSP 132R-1 requires additional disclosures about
plan assets includin
g
investment allocation,
f
air value o
f
ma
j
or
cate
g
ories o
f
plan assets, development o
f
f
air value measurements,
and concentrations of risk. FSP 132R-1 is effective for fi scal years
ending after December 15, 2009 and is required to be adopted
by Canon in the year ending December 31, 2009. Canon is
currentl
y
evaluatin
g
the requirements o
f
these additional disclo
-
sures, but does not ex
p
ect the ado
p
tion of FSP 132R-1 to have
an im
p
act on Canon’s consolidated results of o
p
erations and
fi nancial condition
.
(y) Reclassi
fi
catio
n
Time deposits with ori
g
inal maturities of more than three
months and marketable securities, which were previously dis
-
closed separately in the consolidated balance sheets, have been
reclassi
fi
ed to short-term investments to con
f
orm to the current
y
ear presentation
.
Intangi
bl
e assets, w
h
ic
h
were previous
l
y inc
l
u
d
e
d
in ot
h
er
assets, have been reclassifi ed to intangible assets in the consoli
-
dated balance sheets to con
f
orm to the current
y
ear presentation
.
The consolidated fi nancial statements
p
resented herein are
expressed in Japanese yen and, solely for the convenience of the
reader
,
have been translated into United States dollars at the
rate of ¥91 = U.S.
$
1, the approximate exchan
g
e rate prevailin
g
on t
h
e To
ky
o Forei
g
n Exc
h
an
g
e Mar
k
et on Decem
b
er 30, 2008.
T
h
is trans
l
ation s
h
ou
ld
not
b
e construe
d
as a re
p
resentation t
h
at
t
h
e
a
m
ou
n
ts
s
h
o
wn
cou
l
d
be
co
nv
e
r
ted
in
to
U
ni
ted
States
dollars at such rate
.
2
. Basis o
f
Financial Statement Translatio
n
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED)
CANON INC. AND SUBSIDIARIES