GameStop 2007 Annual Report Download - page 82

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into Class A common shares on a one-for-one basis (the “Conversion”). In addition, on February 9, 2007, the Board
of Directors of the Company authorized a two-for-one stock split, effected by a one-for-one stock dividend to
stockholders of record at the close of business on February 20, 2007, paid on March 16, 2007 (the “Stock Split”).
The effect of the Conversion and the Stock Split has been retroactively applied to all periods presented in the
consolidated financial statements and notes thereto.
New Accounting Pronouncements
In March 2008, the FASB issued Statement of Financial Accounting Standards No. 161, Disclosures about
Derivative Instruments and Hedging Activities — an amendment of FASB Statement No. 133 (“SFAS 161”).
SFAS 161 requires enhanced disclosures about 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 position, financial
performance, and cash flows. SFAS 161 is effective for the Company on February 1, 2009. The Company is
currently evaluating the impact that the adoption of SFAS 161 will have on its consolidated financial statements.
In December 2007, the FASB issued Statement of Financial Accounting Standards No. 141 (revised 2007),
Business Combinations, (“SFAS 141(R)”). SFAS 141(R) amends the principles and requirements for how an
acquirer recognizes and measures in its financial statements the identifiable assets acquired, the liabilities assumed,
any noncontrolling interest in the acquiree and the goodwill acquired. SFAS 141(R) also establishes disclosure
requirements to enable the evaluation of the nature and financial effects of the business combination. SFAS 141(R)
is effective for the Company on February 1, 2009, and the Company will apply prospectively SFAS 141(R) to all
business combinations subsequent to the effective date.
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”). SFAS 160 establishes accounting and reporting standards for the noncontrolling interest in a
subsidiary and for the deconsolidation of a subsidiary. SFAS 160 also establishes disclosure requirements that
clearly identify and distinguish between the controlling and noncontrolling interests and requires the separate
disclosure of income attributable to controlling and noncontrolling interests. SFAS 160 is effective for fiscal years
beginning after December 15, 2008. The Company is currently evaluating the impact that the adoption of SFAS 160
will have on the Company’s consolidated financial statements.
In February 2007, the FASB issued Statement of Financial Accounting Standards No. 159, The Fair Value
Option for Financial Assets and Financial Liabilities (“SFAS 159”). This statement permits entities the option to
measure many financial instruments and certain other items at fair value at specific election dates. Unrealized gains
and losses on items for which the fair value option has been elected are reported in earnings. SFAS 159 was effective
for the Company on February 3, 2008. The adoption of SFAS 159 did not have a material impact on the Company’s
consolidated financial statements.
In September 2006, the FASB issued Statement of Financial Accounting Standards No. 157, Fair Value
Measurements (“SFAS 157”), which defines fair value, establishes a framework for measuring fair value, and
expands disclosures about fair value measurements. SFAS 157 applies to other accounting pronouncements that
require or permit fair value measurements. The Company adopted SFAS 157 on February 3, 2008 as required for its
financial assets and liabilities. However, in February 2008, the FASB released a FASB Staff Position, FSP
FAS 157-2, Effective Date of FASB Statement No. 157, which delayed the effective date of SFAS 157 for all non-
financial assets and non-financial liabilities, except those that are recognized or disclosed at fair value in the
financial statements on a recurring basis. The adoption of SFAS 157 for the Company’s financial assets and
liabilities did not have a material impact on the Company’s financial condition and results of operations. The
Company does not believe the adoption of SFAS 157 for its non-financial assets and liabilities, effective February 1,
2009, will have a material impact on its consolidated financial statements.
F-15
GAMESTOP CORP.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS — (Continued)