Garmin 2009 Annual Report Download - page 96

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AreNotOrderly”andFSPNo.FAS115‐2andFAS124‐2(“FSPFAS115‐2”),“RecognitionandPresentationofOther‐
Than‐TemporaryImpairments”,bothofwhichweresubsequentlycodified.ThesetwoFSPswereissuedtoprovide
additionalguidanceabout(1)measuringthefairvalueoffinancialinstrumentswhenthemarketsbecomeinactive
andquotedpricesmayreflectdistressedtransactions,and(2)recordingimpairmentchargesoninvestmentsin
debtinstruments.Additionally,theFASBissuedFSPNo.FAS107‐1andAPB28‐1(“FSPFAS107‐1”),“Interim
DisclosuresaboutFairValueofFinancialInstruments,”torequiredisclosuresoffairvalueofcertainfinancial
instrumentsininterimfinancialstatements. TheseFSPsareeffectiveforfinancialstatementsissuedforinterim
andannualreportingperiodsendingafterJune15,2009.TheCompanyhasadoptedtheFSPsandtheguidancedid
nothaveamaterialimpactontheCompany’sfinancialconditionoroperatingresultsin2009.

InMay2009,theFASBissuedSFASNo.165,“SubsequentEvents”(“SFAS165”)whichwassubsequently
codified.SFAS165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.SFAS165iseffective
forinterimorannualfinancialperiodsendingafterJune15,2009.TheCompanyadoptedtheprovisionsofSFAS
165forthequarterendedJune27,2009.Theadoptionofthisstandarddidnothaveamaterialeffectonthe
Company’sfinancialstatements.

InJune2009,theFASBissuedSFASNo.168,“TheFASBAccountingStandardsCodificationTMandthe
HierarchyofGenerallyAcceptedAccountingPrinciplesareplacementofFASBStatementNo.162”(“SFAS168”)
whichwassubsequentlycodified.SFAS168providesfortheFASBAccountingStandardsCodificationTM(the
“ASC”)tobecomethesingleofficialsourceofauthoritative,nongovernmentalU.S.generallyacceptedaccounting
principles(GAAP).TheCodificationdidnotchangeGAAPbutreorganizestheliterature.SFAS168iseffectivefor
interimandannualperiodsendingafterSeptember15,2009.Theadoptionofthisstandarddidnothavea
materialeffectonourfinancialstatements.

InOctober2009,theFASBissuedAccountingStandardUpdateNo.2009‐13,RevenueRecognition(Topic
605):Multiple‐DeliverableRevenueArrangementswhichwassubsequentlycodified. Thisguidancemodifiesthe
fairvaluerequirementsofASCsubtopic605‐25RevenueRecognition‐MultipleElementArrangementsbyallowing
theuseofthe“bestestimateofsellingprice”inadditiontoVendorSpecificObjectiveEvidence(“VSOE”)andthird‐
partyevidence(“TPE”)fordeterminingthesellingpriceofadeliverable.Avendorisnowrequiredtouseitsbest
estimateofthesellingpricewhenVSOEorTPEofthesellingpricecannotbedetermined.Inaddition,theresidual
methodofallocatingarrangementconsiderationisnolongerpermitted.Theamendmentsincludedinthisupdate
willbeeffectiveprospectivelyforrevenuearrangementsenteredintoormateriallymodifiedinfiscalyears
beginningonorafterJune15,2010.Earlyadoptionispermitted.TheCompanyhasadoptedthisguidanceandit
didnothaveamaterialimpactontheCompany’sfinancialconditionoroperatingresultsin2009,astheCompany
doesnothaveasignificantamountofsalesthatcontainmultipleelements.

InOctober2009,theFASBissuedAccountingStandardUpdateNo.2009‐14,Software(Topic985):Certain
RevenueArrangementsThatIncludeSoftwareElementswhichwassubsequentlycodified.Thisguidancemodifies
thescopeofASCsubtopic965‐605Software‐RevenueRecognitiontoexcludefromitsrequirements(a)non‐
softwarecomponentsoftangibleproductsand(b)softwarecomponentsoftangibleproductsthataresold,
licensed,orleasedwithtangibleproductswhenthesoftwarecomponentsandnon‐softwarecomponentsofthe
tangibleproductfunctiontogethertodeliverthetangibleproduct’sessentialfunctionality. Theamendments
includedinthisupdatewillbeeffectiveprospectivelyforrevenuearrangementsenteredintoormaterially
modifiedinfiscalyearsbeginningonorafterJune15,2010. Earlyadoptionispermitted. TheCompanyhas
adoptedthisguidanceanditdidnothaveamaterialimpactontheCompany’sfinancialconditionoroperating
resultsin2009,astheCompanydoesnothaveasignificantamountofsalesthatcontainundeliveredsoftware
componentsthatarenotessentialtotheproduct’sfunctionality.
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3.MarketableSecurities
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TheFASBASCtopicentitledFairValueMeasurementsandDisclosuresdefinesfairvalueasthepricethat
wouldbereceivedtosellanassetorpaidtotransferaliabilityinanorderlytransactionbetweenmarket