Dillard's 2009 Annual Report Download - page 39

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NEW ACCOUNTING PRONOUNCEMENTS
In June 2009, the Financial Accounting Standards Board (‘‘FASB’’) released the FASB Accounting
Standards Codification↩ and the Hierarchy of Generally Accepted Accounting Principles (the
‘‘Codification’’), effective for financial statements issued for interim and annual periods ending after
September 15, 2009. The Codification does not change GAAP, but does significantly change the way in
which the accounting literature is organized, combining all authoritative standards in a comprehensive,
topically organized database. All existing accounting standards documents were superseded and all
other accounting literature not included in the Codification is considered nonauthoritative, other than
guidance issued by the SEC. The Company adopted the provisions of this guidance during the fiscal
quarter ended October 31, 2009, which had no impact on the Company’s consolidated financial
statements.
Derivative Instruments and Hedging Activities
In March 2008, the FASB issued new accounting guidance related to disclosures about derivative
instruments and hedging activities. This guidance amends and expands disclosure requirements to
provide a better understanding related to how and why an entity uses derivative instruments, how
derivative instruments and related hedged items are accounted for and their effect on an entity’s
financial statements. The Company adopted this guidance on February 1, 2009, and it did not have a
material impact on the Company’s consolidated financial statements.
Noncontrolling Interests in Consolidated Financial Statements
In December 2007, the FASB issued new accounting guidance related to the accounting for
noncontrolling interests in consolidated financial statements. The objective of the guidance is to
improve the relevance, comparability and transparency of the financial information that a reporting
entity provides in its consolidated financial statements by establishing accounting and reporting
standards for the noncontrolling interest in a subsidiary and for the deconsolidation of a subsidiary.
This guidance requires that noncontrolling interests in subsidiaries be reported in the equity section of
the controlling company’s balance sheet. The Company adopted this guidance on February 1, 2009, and
it did not have a material impact on the Company’s consolidated financial statements.
Fair Value Measurements and Disclosure
In September 2006, the FASB issued new accounting guidance related to fair value measurements.
This guidance defines fair value, establishes a framework for measuring fair value in GAAP, and
expands disclosures about fair value measurements. This guidance applies under other accounting
pronouncements that require or permit fair value measurements, the FASB having concluded in those
other accounting pronouncements that fair value is the relevant measurement attribute. This guidance
was effective for financial assets and liabilities in financial statements issued for fiscal years beginning
after November 15, 2007. The adoption of this portion of the guidance did not have a material impact
on the Company’s consolidated financial statements. In February 2008, the FASB permitted the delayed
application of this fair value guidance for all nonrecurring fair value measurements of nonfinancial
assets and nonfinancial liabilities until fiscal years beginning after November 15, 2008. The Company
adopted this remaining portion of the statement on February 1, 2009, and the adoption did not have a
material impact on the Company’s consolidated financial statements.
In April 2009, the FASB issued new accounting guidance related to interim disclosures about the
fair values of financial instruments. This guidance requires disclosures about fair value of financial
instruments in interim as well as in annual financial statements. The guidance was effective for interim
and annual periods ending after June 15, 2009. The Company adopted these provisions on August 1,
35