Dollar General 2007 Annual Report Download - page 75

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qualify as hedging instruments pursuant to paragraphs 37 and 42 of SFAS 133 and related
hedged items accounted for under SFAS 133. SFAS 161 requires entities to provide greater
transparency through additional disclosures about how and why an entity uses derivative
instruments, how derivative instruments and related hedged items are accounted for under SFAS
133 and its related interpretations, and how derivative instruments and related hedged items
affect an entity’ s financial position, results of operations, and cash flows. SFAS 161 is effective
as of the beginning of an entity’ s first fiscal year that begins after November 15, 2008. The
Company currently plans to adopt SFAS 161 during its 2009 fiscal year. No determination has
yet been made regarding the potential impact of this standard on the Company’ s financial
statements.
In December 2007, the FASB issued SFAS No. 141(R), “Business Combinations”. The
new standard establishes the requirements for how an acquirer recognizes and measures in its
financial statements the identifiable assets acquired, the liabilities assumed, and any non-
controlling interest (formerly minority interest) in an acquiree; provides updated requirements
for recognition and measurement of goodwill acquired in a business combination or a gain from
a bargain purchase; and provides updated disclosure requirements to enable users of financial
statements to evaluate the nature and financial effects of the business combination. This
Statement applies prospectively to business combinations for which the acquisition date is on or
after the beginning of the first annual reporting period beginning on or after December 15, 2008.
Early adoption is not allowed. This standard is not expected to impact the Company’ s financial
statements unless a qualifying transaction is consummated subsequent to the effective date.
In February 2007, the FASB issued SFAS 159, “The Fair Value Option for Financial
Assets and Financial Liabilities – Including an amendment of FASB Statement No. 115” (“SFAS
159”). SFAS 159 permits entities to choose to measure many financial instruments and certain
other items at fair value. It provides entities with the opportunity to mitigate volatility in
reported earnings caused by measuring related assets and liabilities differently without having to
apply complex hedge accounting provisions. SFAS 159 is effective as of the beginning of an
entity’ s first fiscal year that begins after November 15, 2007. The Company currently plans to
adopt SFAS 159 during its 2008 fiscal year. The Company is in the process of evaluating the
potential impact of this standard on its financial statements.
In September 2006, the FASB issued SFAS 157, “Fair Value Measurements” (“SFAS
157”). SFAS 157 provides guidance for using fair value to measure assets and liabilities. The
standard also requires expanded information about the extent to which companies measure assets
and liabilities at fair value, the information used to measure fair value, and the effect of fair value
measurements on earnings. The standard applies whenever other standards require (or permit)
assets or liabilities to be measured at fair value. The standard does not expand the use of fair
value in any new circumstances for financial assets and liabilities. SFAS 157 is effective for
financial statements issued for fiscal years beginning after November 15, 2007, and interim
periods within those fiscal years. For non-financial assets and liabilities, the effective date has
been delayed to fiscal years beginning after November 15, 2008. The Company currently plans
to adopt SFAS 157 during its 2008 and 2009 fiscal years as appropriate. The Company is in the
process of evaluating the potential impact of this standard on its consolidated financial
statements.