Dollar General 2008 Annual Report Download - page 83

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Accounting pronouncements
In March 2008, the FASB issued SFAS No. 161, “Disclosures about Derivative
Instruments and Hedging Activities”, an amendment of FASB Statement 133. SFAS 161 applies
to all derivative instruments and nonderivative instruments that are designated and 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
plans to adopt SFAS 161 during the first quarter of 2009 and its impact is expected to be limited
to the additional disclosures discussed above.
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 the 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. Unless a qualifying transaction is consummated subsequent to the
effective date, the adoption of this standard on the Company’ s financial statements is expected to
be limited to any future Merger-related adjustments to uncertain tax positions that would, if
subsequently recognized, impact results of operations rather than goodwill.
In September 2006, the FASB issued SFAS 157, “Fair Value Measurements.” 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. 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 adopted components of SFAS 157 in 2008 and currently
expects to adopt the components of SFAS 157 relating to nonfinancial assets and liabilities
during 2009. The Company is in the process of evaluating the potential impact of this standard
on its consolidated financial statements.