DuPont 2007 Annual Report Download - page 69

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Accounting Standards Issued Not Yet Adopted
In September 2006, the FASB issued Statement of Financial Accounting Standards No. 157, “Fair Value
Measurements,” (SFAS 157) which addresses how companies should measure fair value when required for
recognition or disclosure purposes under GAAP. The standard’s provisions will be applied to existing accounting
measurements and related disclosures that are based on fair value. SFAS 157 does not require any new fair value
measurements. The standard applies a common definition of fair value to be used throughout GAAP, with emphasis
on fair value as a “market-based” measurement versus an entity-specific measurement and establishes a hierarchy
of fair value measurement methods. The disclosure requirements are expanded to include the extent to which
companies use fair value measurements, the methods and assumptions used to measure fair value and the effect of
fair value measurements on earnings. SFAS 157 is effective for fiscal years beginning after November 15, 2007. The
new standard’s provisions applicable to the company will be applied prospectively beginning January 1, 2008. The
FASB, on February 12, 2008, issued FASB Staff Position (FSP) FAS 157-2. This FSP permits a delay in the effective
date of SFAS 157 to fiscal years beginning after November 15, 2008, for nonfinancial assets and nonfinancial
liabilities, except for items that are recognized or disclosed at fair value in the financial statements on a recurring
basis (at least annually). The delay is intended to allow the Board and constituents additional time to consider the
effect of various implementation issues that have arisen, or that may arise, from the application of SFAS 157. On
February 14, 2008, the FASB issued FSP FAS 157-1 to exclude SFAS 13, Accounting for Leases, and its related
interpretive accounting pronouncements from the scope of SFAS 157. Management expects that the adoption of
SFAS 157 will not have a material effect on the company’s financial position, liquidity or results of operations.
In December 2007, the FASB issued Statement of Financial Accounting Standards No. 141 (revised 2007) “Business
Combinations” (SFAS 141R) which replaces FASB Statement No. 141. SFAS 141R addresses the recognition and
measurement of identifiable assets acquired, liabilities assumed, and non-controlling interests in business
combinations. SFAS 141R also requires disclosure that enables users of the financial statements to better
evaluate the nature and financial effect of business combinations. SFAS 141R 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. SFAS 141R will be adopted by the company on January 1, 2009. The company is
currently evaluating the impact of adoption on its Consolidated Financial Statements.
In December 2007, the FASB issued Statement of Financial Accounting Standards No. 160, “Noncontrolling
Interests in Consolidated Financial Statements – an amendment of Accounting Research Bulletin No. 51”
(SFAS 160) which changes the accounting and reporting for minority interests and for the deconsolidation of a
subsidiary. It also clarifies that a third-party, non-controlling interest in a consolidated subsidiary is an ownership
interest in the consolidated entity that should be reported as equity in the consolidated financial statements.
SFAS 160 also requires disclosure that clearly identifies and distinguishes between the interests of the parent and
the interests of the non-controlling owners. SFAS 160 is effective for fiscal years beginning after December 15, 2008.
SFAS 160 will be adopted by the company on January 1, 2009. The company is currently evaluating the impact of
adoption on its Consolidated Financial Statements.
F-12
E. I. du Pont de Nemours and Company
Notes to the Consolidated Financial Statements (continued)
(Dollars in millions, except per share)