Honeywell 2008 Annual Report Download - page 82

HONEYWELL INTERNATIONAL INC.
NOTES TO FINANCIAL STATEMENTS—(Continued)
(Dollars in millions, except per share amounts)
and hedging activities. SFAS No. 161 is effective for fiscal years beginning after November 15, 2008. The
implementation of this standard will not have a material impact on our consolidated financial position and results
of operations.
In April 2008, the FASB issued FSP 142-3, "Determination of the Useful Life of Intangible Assets", (FSP
142-3). FSP 142-3 amends the factors that should be considered in developing renewal or extension
assumptions used to determine the useful life of a recognized intangible asset under SFAS No. 142, "Goodwill
and Other Intangible Assets". FSP 142-3 is effective for fiscal years beginning after December 15, 2008. The
implementation of this standard will not have a material impact on our consolidated financial position and results
of operations.
In May 2008, the FASB issued SFAS No. 162, "The Hierarchy of Generally Accepted Accounting Principles"
(SFAS No. 162). SFAS No. 162 identifies the sources of accounting principles and the framework for selecting
the principles used in the preparation of financial statements. SFAS No. 162 is effective 60 days following the
SEC's approval of the Public Company Accounting Oversight Board amendments to AU Section 411, "The
Meaning of Present Fairly in Conformity with Generally Accepted Accounting Principles". The implementation of
this standard did not have a material impact on our consolidated financial position and results of operations.
In June 2008, the FASB issued FSP EITF 03-6-1, "Determining Whether Instruments Granted in Share-
Based Payment Transactions Are Participating Securities" (FSP EITF 03-6-1). FSP EITF 03-6-1 clarified that all
outstanding unvested share-based payment awards that contain rights to nonforfeitable dividends participate in
undistributed earnings with common shareholders. Awards of this nature are considered participating securities
and the two-class method of computing basic and diluted earnings per share must be applied. FSP EITF 03-6-1
is effective for fiscal years beginning after December 15, 2008. The implementation of this standard will not have
a material impact on our consolidated financial position and results of operations.
In June 2008, the FASB ratified EITF Issue No. 07-5, "Determining Whether an Instrument (or an Embedded
Feature) Is Indexed to an Entity's Own Stock" (EITF 07-5). EITF 07-5 provides that an entity should use a two
step approach to evaluate whether an equity-linked financial instrument (or embedded feature) is indexed to its
own stock, including evaluating the instrument's contingent exercise and settlement provisions. It also clarifies on
the impact of foreign currency denominated strike prices and market-based employee stock option valuation
instruments on the evaluation. EITF 07-5 is effective for fiscal years beginning after December 15, 2008. The
implementation of this standard will not have a material impact on our consolidated financial position and results
of operations.
In June 2008, the FASB ratified EITF Issue No. 08-3, "Accounting for Lessees for Maintenance Deposits
Under Lease Arrangements" (EITF 08-3). EITF 08-3 provides guidance for accounting for nonrefundable
maintenance deposits. It also provides revenue recognition accounting guidance for the lessor. EITF 08-3 is
effective for fiscal years beginning after December 15, 2008. The implementation of this standard will not have a
material impact on our consolidated financial position and results of operations.
In September 2008, the FASB issued FSP 133-1 and FIN 45-4, "Disclosures about Credit Derivatives and
Certain Guarantees: An Amendment of FASB Statement No. 133 and FASB Interpretation No. 45; and
Clarification of the Effective Date of FASB Statement No. 161" (FSP 133-1 and FIN 45-4). FSP 133-1 and FIN
45-4 amends and enhances disclosure requirements for sellers of credit derivatives and financial guarantees. It
also clarifies that the disclosure requirements of SFAS No. 161 are effective for quarterly periods beginning after
November 15, 2008, and fiscal years that include those periods. FSP 133-1 and FIN 45-4 is effective for reporting
periods (annual or interim) ending after November 15, 2008. The implementation of this standard did not have a
material impact on our consolidated financial position and results of operations.
60