Frontier Communications 2009 Annual Report Download - page 75

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(ASC Topic 805), such costs are required to be expensed as incurred and are reflected in “Acquisition and
integration costs” in our consolidated statements of operations.
Noncontrolling Interests in Consolidated Financial Statements
In December 2007, the FASB issued SFAS No. 160, “Noncontrolling Interests in Consolidated Financial
Statements” (currently ASC Topic 810). SFAS No. 160 (ASC Topic 810) establishes requirements for
ownership interest in subsidiaries held by parties other than the Company (sometimes called “minority
interest”) be clearly identified, presented and disclosed in the consolidated statement of financial position
within equity, but separate from the parent’s equity. All changes in the parent’s ownership interest are required
to be accounted for consistently as equity transactions and any noncontrolling equity investments in
unconsolidated subsidiaries must be measured initially at fair value. SFAS No. 160 (ASC Topic 810) was
effective, on a prospective basis, for fiscal years beginning after December 15, 2008. However, presentation
and disclosure requirements must be retrospectively applied to comparative financial statements. The adoption
of SFAS No. 160 (ASC Topic 810) in the first quarter of 2009 did not have a material impact on our financial
position, results of operations or cash flows.
Determining Whether Instruments Granted in Share-Based Payment Transactions are Participating
Securities
In June 2008, the FASB ratified FSP EITF No. 03-6-1, “Determining Whether Instruments Granted in
Share-Based Payment Transactions are Participating Securities” (currently ASC Topic 260). FSP EITF No. 03-
6-1 (ASC Topic 260) addresses whether instruments granted in share-based payment transactions are
participating securities prior to vesting and, therefore, should be included in the earnings allocation in
computing earnings per share under the two-class method. FSP EITF No. 03-6-1 (ASC Topic 260) was
effective, on a retrospective basis, for financial statements issued for fiscal years beginning after December 15,
2008, and interim periods within those years. Our outstanding non-vested restricted stock is a participating
security in accordance with FSP EITF No. 03-6-1 (ASC Topic 260) and we have adjusted our previously
reported basic and diluted income per common share. The adoption of FSP EITF No. 03-6-1 (ASC Topic 260)
in the first quarter of 2009 did not have a material impact on our basic and diluted income per common share.
Employers’ Disclosures about Postretirement Benefit Plan Assets
In December 2008, the FASB issued FSP SFAS No. 132 (R)-1, “Employers’ Disclosures about
Postretirement Benefit Plan Assets” (currently ASC Topic 715). FSP SFAS No. 132(R)-1 (ASC Topic 715)
amends SFAS No. 132, “Employers’ Disclosures about Pensions and Other Postretirement Benefits,” (ASC
Topic 230) to provide guidance on an employers’ disclosures about plan assets of a defined benefit pension or
other postretirement plan. FSP SFAS No. 132(R)-1 (ASC Topic 715) requires additional disclosures about
investment policies and strategies, categories of plan assets, fair value measurements of plan assets and
significant concentrations of risk. The disclosures about plan assets required by FSP SFAS No. 132(R)-1 (ASC
Topic 715) are effective for fiscal years ending after December 15, 2009. The adoption of the disclosure
requirements of FSP SFAS No. 132(R)-1 (ASC Topic 715) in 2009 did not have a material impact on our
financial position, results of operations or cash flows.
Subsequent Events
In May 2009, the FASB issued SFAS No. 165, “Subsequent Events” (currently ASC Topic 855), which
establishes general standards of accounting for and disclosure of events that occur after the balance sheet date
but before financial statements are issued or are available to be issued. In particular, SFAS No. 165 (ASC
Topic 855) sets forth the period after the balance sheet date during which management of a reporting entity
should evaluate events or transactions that may occur for potential recognition or disclosure in the financial
statements, the circumstances under which an entity should recognize events or transactions occurring after the
balance sheet date in its financial statements, and the disclosures that an entity should make about events or
F-13
FRONTIER COMMUNICATIONS CORPORATION AND SUBSIDIARIES
Notes to Consolidated Financial Statements