Henry Schein 2009 Annual Report Download - page 59

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47
Recently Issued Accounting Standards
Accounting Pronouncements Adopted
In June 2009, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update
No. 2009-01, “Generally Accepted Accounting Principles” (ASC Topic 105) which establishes the FASB
Accounting Standards Codification (“the Codification” or “ASC”) as the official single source of authoritative
U.S. generally accepted accounting principles (“GAAP”). All existing accounting standards are superseded.
All other accounting guidance not included in the Codification will be considered non-authoritative. The
Codification also includes all relevant Securities and Exchange Commission (“SEC”) guidance organized
using the same topical structure in separate sections within the Codification. Following the Codification, the
FASB will not issue new standards in the form of Statements, FASB Staff Positions or Emerging Issues Task
Force Abstracts. Instead, it will issue Accounting Standards Updates (“ASU”) which will serve to update the
Codification, provide background information about the guidance and provide the basis for conclusions on the
changes to the Codification.
The Codification is not intended to change GAAP, but it will change the way GAAP is organized and
presented. The Codification was effective for our third quarter 2009 financial statements and the principal
impact on our financial statements is limited to disclosures as all future references to authoritative accounting
literature will be referenced in accordance with the Codification.
In May 2009, the FASB issued guidance within Topic 855-10 relating to subsequent events. This
guidance establishes principles and requirements for subsequent events. This guidance defines the period
after the balance sheet date during which events or transactions that may occur would be required to be
disclosed in a company’s financial statements. Public entities are required to evaluate subsequent events
through the date that financial statements are issued. This guidance also provides guidelines in evaluating
whether or not events or transactions occurring after the balance sheet date should be recognized in the
financial statements. This guidance requires disclosure of the date through which subsequent events have
been evaluated. We have evaluated subsequent events through the date of issuance of this report.
In April 2009, the FASB issued guidance within ASC Topic 825-10 concerning interim disclosures about
fair value instruments. This guidance requires that disclosures about the fair value of a company’s financial
instruments be made whenever summarized financial information for interim reporting periods is made. The
provisions of this guidance are effective for interim reporting periods ending after June 15, 2009. The
adoption of this guidance did not have a material impact on our consolidated financial statements.
In April 2009, the FASB issued, within ASC 820, additional guidance for estimating fair value in
accordance with ASC 820 when the volume and level of activity for the asset or liability have significantly
decreased. The provisions of this additional guidance are effective for interim and annual reporting periods
ending after June 15, 2009. The adoption of this additional guidance did not have a material impact on our
consolidated financial statements.
In April 2009, the FASB amended previous guidance and issued additional guidance within ASC 320
relating to the disclosure requirements for other-than-temporary impairments for debt and equity securities.
This guidance addresses the determination as to when an investment is considered impaired, whether that
impairment is other than temporary, and the measurement of an impairment loss. The provisions of this
guidance are effective for interim and annual reporting periods ending after June 15, 2009. The adoption of
this guidance did not have a material impact on our consolidated financial statements.
In April 2009, the FASB issued guidance within ASC Topic 805, “Business Combinations.” ASC Topic
805 amends the initial recognition and measurement, subsequent measurement and accounting, and disclosure
of assets and liabilities arising from contingencies in a business combination. This guidance is effective for
assets or liabilities arising from contingencies in 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. The
adoption of this guidance did not have a material impact on our consolidated financial statements.