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McKESSON CORPORATION
FINANCIAL NOTES (Continued)
75
On October 10, 2008, we adopted FSP No. FAS 157-3, “Determining the Fair Value of a Financial Asset When
the Market for That Asset Is Not Active,” which applies to financial assets within the scope of accounting
pronouncements that require or permit fair value measurements in accordance with SFAS No. 157. This FSP
clarifies the application of SFAS No. 157 and defines additional key criteria in determining the fair value of a
financial asset when the market for that financial asset is not active. The adoption of this FSP did not have a
material impact on our consolidated financial statements.
On April 1, 2008, we adopted SFAS No. 159, “The Fair Value Option for Financial Assets and Financial
Liabilities, including an amendment of FASB Statement No. 115.” SFAS No. 159 permits us to elect fair value as
the initial and subsequent measurement attribute for certain financial assets and liabilities that are not otherwise
required to be measured at fair value on an instrument-by-instrument basis. If we elect the fair value option, we
would be required to recognize subsequent changes in fair value in our earnings. This standard also establishes
presentation and disclosure requirements designed to improve comparisons between entities that choose different
measurement attributes for similar types of assets and liabilities. While SFAS No. 159 became effective for us in
2009, we did not elect the fair value measurement option for any of our existing assets and liabilities and
accordingly, SFAS No. 159 did not have any impact on our consolidated financial statements. We could elect this
option for new or substantially modified assets and liabilities in the future.
On April 1, 2008, we adopted SFAS No. 161, “Disclosures about Derivative Instruments and Hedging
Activities — an amendment of FASB Statement No. 133.” This statement requires enhanced disclosures about (1)
how and why an entity uses derivative instruments, (2) how derivative instruments and related hedged items are
accounted for under SFAS No. 133, “Accounting for Derivative Instruments and Hedging Activities” and its related
interpretations and (3) how derivative instruments and related hedged items affect an entity’s financial position,
financial performance and cash flows. The adoption of this standard did not have a material impact on our
consolidated financial statements.
On October 1, 2008, we adopted FSP No. FAS 133-1 and FIN No. 45-4, “Disclosures about Credit Derivatives
and Certain Guarantees: An Amendment of FAS No. 133 and FIN No. 45; and Clarification of the Effective Date of
FAS No. 161.” The adoption of this standard did not have an impact on our consolidated financial statements.
On November 15, 2008, we adopted SFAS No. 162, “The Hierarchy of Generally Accepted Accounting
Principles.” This statement identifies the sources of accounting principles and the framework for selecting the
principles to be used in the preparation of financial statements of nongovernmental entities that are presented in
conformity with GAAP. While this statement formalizes the sources and hierarchy of GAAP within the
authoritative accounting literature, it did not change the accounting principles that were already in place. The
adoption of this standard did not have a material impact on our consolidated financial statements.
On December 31, 2008, we adopted FSP No. FAS 140-4 and FIN No. 46(R)-8, “Disclosures by Public Entities
(Enterprises) about Transfers of Financial Assets and Interests in Variable Interest Entities.” This FSP amends
SFAS No. 140, “Accounting for Transfers and Servicing of Financial Assets and Extinguishments of Liabilities,”
and FIN No. 46 (revised December 2003), “Consolidation of Variable Interest Entities,” to require enhanced
disclosures by public entities in understanding the extent of a transferor’s continuing involvement with transferred
financial assets and an enterprise’s involvement with VIEs. The adoption of this standard did not have a material
impact on our consolidated financial statements.