MoneyGram 2008 Annual Report Download - page 107

Table of Contents
MONEYGRAM INTERNATIONAL, INC. AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS — (Continued)
In February 2007, the FASB issued SFAS No. 159, The Fair Value Option for Financial Assets and Financial Liabilities. SFAS 159
permits companies to choose to measure certain financial instruments and certain other items at fair value. The election to measure the
financial instrument at fair value is made on an instrument-by-instrument basis for the entire instrument, with few exceptions, and is
irreversible. The Company adopted SFAS 159 on January 1, 2008 with no material impact on its Consolidated Financial Statements.
In June 2007, the American Institute of Certified Public Accountants ("AICPA") issued Statement of Position ("SOP") 07-1, Clarification
of the Scope of the Audit and Accounting Guide Investment Companies and Accounting by Parent Companies and Equity Method
Investors for Investments in Investment Companies. SOP 07-1 provides specific guidance for determining whether an entity meets the
definition of an investment company and should follow the AICPA Audit Accounting Guide, Investment Companies (the "Guide").
Entities that meet the definition of an investment company must apply the provisions of the Guide, which includes a requirement to carry
investments at fair value. The effective date of SOP 07-1 has been indefinitely deferred.
In June 2007, the EITF approved Issue No. 06-11, Accounting for Income Tax Benefits of Dividends on Share-Based Payment. The EITF
reached a final conclusion that a realized income tax benefit from dividends or dividend equivalents that are charged to retained earnings
and are paid to employees for equity classified restricted stock, restricted stock units and stock options should be recognized as an
increase to additional paid-in-capital ("APIC"). Those tax benefits are considered excess tax benefits under SFAS No. 123(R). The
amount recognized in APIC for the realized income tax benefit from dividends on those awards should be included in the pool of excess
tax benefits available to absorb tax deficiencies. The guidance of EITF 06-11 was adopted prospectively by the Company as of January 1,
2008 with no material impact on its Consolidated Financial Statements
In December 2007, the FASB issued SFAS No. 141R, Business Combinations. SFAS 141R changes how business combinations are
accounted for and disclosed. The adoption of the requirements of SFAS 141R applies prospectively to business combinations completed
by the Company for which the acquisition date is on or after January 1, 2009.
In March 2008, the FASB issued SFAS No. 161, Disclosures about Derivative Instruments and Hedging Activities, an amendment of
SFAS No. 133. SFAS 161 will require additional disclosures about how and why the Company uses derivative financial instruments, how
derivative instruments and related hedged items are accounted for under SFAS 133 and how derivative instruments and related hedged
items affect the Company's financial position, results of operations and cash flows. SFAS 161 is effective for financial statements issued
for fiscal years and interim periods beginning after November 15, 2008; however early adoption is encouraged, as are comparative
disclosures for earlier periods. The Company has adopted the disclosure provisions of SFAS 161 on a prospective basis effective
December 31, 2008.
In April 2008, the FASB approved FASB Staff Position ("FSP") FAS 142-3, Determination of the Useful Life of Intangible Assets, FSP
FAS 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 FAS 142-3 is effective for the
Company's fiscal year beginning January 1, 2009, with early adoption prohibited. The Company is currently evaluating the impact of FSP
FAS 142-3 on its Consolidated Financial Statements.
In May 2008, the FASB approved FSP APB 14-1, Accounting for Convertible Debt Instruments That May Be Settled in Cash upon
Conversion (Including Partial Cash Settlement). FSP APB 14-1 specifies that issuers of such instruments should separately account for
the liability and equity components in a manner that will reflect the entity's nonconvertible debt borrowing rate when interest cost is
recognized in subsequent periods. FSP APB 14-1 is effective for the Company's fiscal year beginning January 1, 2009, with early
adoption prohibited. The Company does not anticipate that FSP APB 14-1 will have an impact on its Consolidated Financial Statements
as the Company does not have any convertible debt.
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