Kodak 2008 Annual Report Download - page 66

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In February 2008, the FASB issued FASB Staff Position (“FSP”) FAS 157-2, which delays the effective date of SFAS No. 157 for all
nonfinancial assets and liabilities that are not recognized or disclosed at fair value in the financial statements on a recurring basis (at
least annually) until fiscal years beginning after November 15, 2008, and interim periods within those fiscal years. The Company
does not believe that the adoption of SFAS No. 157, in relation to its nonfinancial assets and liabilities, will have a material impact on
its Consolidated Financial Statements.
On October 10, 2008, the FASB issued FSP FAS 157-3, “Determining the Fair Value of a Financial Asset in a Market That Is Not
Active.” The FSP was effective upon issuance. The FSP clarified the application of SFAS 157 in an inactive market and provided an
illustrative example to demonstrate how the fair value of a financial asset is determined when the market for that financial asset is
inactive. The Company adopted the provisions of FSP FAS 157-3 as of December 31, 2008. There was no significant impact to the
Company’s Consolidated Financial Statements as a result of this adoption.
FASB Statement No. 158
In September 2006, the FASB issued SFAS No. 158, "Employers’ Accounting for Defined Benefit Pension and Other Postretirement
Plans (an amendment of FASB Statements No. 87, 88, 106, and 132(R))", which was effective in fiscal years ending after December
15, 2006. This Statement requires employers to recognize the overfunded or underfunded status of a defined benefit postretirement
plan as an asset or liability in its statement of financial position, and to recognize changes in that funded status in the year in which
the changes occur through comprehensive income. SFAS No. 158 does not change the amount of actuarially determined expense
that is recorded in the Consolidated Statement of Operations. SFAS No. 158 also requires an employer to measure the funded
status of a plan as of the date of its year-end statement of financial position, which is consistent with the Company's present
measurement date. The adoption of SFAS No. 158 in the fourth quarter of 2006 did not have any impact on the Company’s
Consolidated Statement of Operations, Statement of Cash Flows, or compliance with its debt covenants.
FASB Statement No. 159
In February 2007, the FASB issued SFAS No. 159, "The Fair Value Option for Financial Assets and Financial Liabilities," which
permits entities to choose to measure, on an item-by-item basis, specified financial instruments and certain other items at fair value.
Unrealized gains and losses on items for which the fair value option has been elected are required to be reported in earnings at each
reporting date. SFAS No. 159 is effective for fiscal years beginning after November 15, 2007. The provisions of this statement are
required to be applied prospectively. The Company adopted SFAS No. 159 in the first quarter of 2008. There was no impact to the
Company’s Consolidated Financial Statements from the adoption of SFAS No. 159 because the Company did not adopt the
voluntary provisions contained therein.
FASB Statement No. 141R
In December 2007, the FASB issued SFAS No. 141R, “Business Combinations,” a revision to SFAS No. 141, “Business
Combinations.” SFAS No. 141R provides revised guidance for recognition and measurement of identifiable assets and goodwill
acquired, liabilities assumed, and any noncontrolling interest in the acquiree at fair value. The Statement also establishes disclosure
requirements to enable the evaluation of the nature and financial effects of a business combination. SFAS No. 141R is required to be
applied prospectively to 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 (January 1, 2009 for the Company). The adoption of SFAS No. 141R is not
expected to have a material impact to the Company’s Consolidated Financial Statements.
FASB Statement No. 160
In December 2007, the FASB issued SFAS No. 160, “Noncontrolling Interests in Consolidated Financial Statements – an
amendment of ARB No. 51.” This Statement establishes accounting and reporting standards for ownership interests in subsidiaries
held by parties other than the parent. Specifically, SFAS No. 160 requires the presentation of noncontrolling interests as equity in the
Consolidated Statement of Financial Position, and separate identification and presentation in the Consolidated Statement of
Operations of net income attributable to the entity and the noncontrolling interest. It also establishes accounting and reporting
standards regarding deconsolidation and changes in a parent’s ownership interest. SFAS No. 160 is effective for fiscal years, and
interim periods within those fiscal years, beginning on or after December 15, 2008 (January 1, 2009 for the Company). The
provisions of SFAS No. 160 are generally required to be applied prospectively, except for the presentation and disclosure
requirements, which must be applied retrospectively. The adoption of SFAS No. 160 is not expected to have a material impact to the
Company’s Consolidated Financial Statements.