Oracle 2008 Annual Report Download - page 94

Table of Contents
ORACLE CORPORATION
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS—(Continued)
May 31, 2009
is the primary beneficiary of the variable interest entity. We will adopt Statement 167 in fiscal 2011 and are
currently evaluating the impact of its pending adoption on our consolidated financial statements.
Subsequent Events: In May 2009, the FASB issued Statement No. 165, Subsequent Events. Statement
165 establishes general standards of accounting for and disclosure of events that occur after the balance sheet
date but before the financial statements are issued or are available to be issued. We will adopt Statement 165
in the first quarter of fiscal 2010 and do not believe it will result in significant changes to reporting of
subsequent events either through recognition or disclosure.
Other-Than-Temporary Impairment of Debt Securities: In April 2009, the FASB issued FASB Staff
Position No. FAS 115-2 and FAS 124-2, Recognition and Presentation of Other-Than-Temporary
Impairments. This FASB Staff Position amends the other-than-temporary impairment accounting guidance
for debt securities. This Staff Position requires that other-than-temporary impairment be separated into the
amount of the total impairment related to credit losses and the amount of the total impairment related to all
other factors. The amount of the total other-than-temporary impairment related to credit losses is recognized
in earnings and the amount related to all other factors is recognized in other comprehensive income. This
Staff Position is effective for interim and annual reporting periods ending after June 15, 2009, with early
adoption permitted for periods ending after March 15, 2009. We will adopt FSP No. FAS 115-2 and
FAS 124-2 in our first quarter of fiscal 2010 and do not believe it will have a material impact on our
consolidated financial statements.
Fair Value Disclosures in Interim Reports: In April 2009, the FASB issued FASB Staff Position
No. FAS 107-1 and APB 28-1, Interim Disclosures about Fair Value of Financial Instruments. This Staff
Position amends FASB Statement No. 107, Disclosures about Fair Value of Financial Instruments, to require
disclosures about fair value of financial instruments at interim reporting periods. This Staff Position is
effective for interim reporting periods ending after June 15, 2009, with early adoption permitted for periods
ending after March 15, 2009 provided FSP No. FAS 115-2 and FAS 124-2 (described above) are also early
adopted. We will adopt FSP No. FAS 107-1 in our first quarter of fiscal 2010 and do not believe it will have a
material impact on our consolidated financial statements.
Equity Method Investment Accounting: In November 2008, the FASB ratified EITF Issue No. 08-6, Equity
Method Investment Accounting Considerations. EITF 08-6 clarifies the accounting for certain transactions
and impairment considerations involving equity method investments. EITF 08-6 is effective for fiscal years
beginning after December 15, 2008, with early adoption prohibited. We do not currently have any
investments that are accounted for under the equity method. As a result, our adoption of EITF 08-6 in fiscal
2010 is not expected to have an impact on our consolidated financial statements.
Defensive Intangible Assets: In November 2008, the FASB ratified EITF No. 08-7, Accounting for
Defensive Intangible Assets. EITF 08-7 clarifies the accounting for certain separately identifiable intangible
assets which an acquirer does not intend to actively use but intends to hold to prevent its competitors from
obtaining access to them. EITF 08-7 requires an acquirer in a business combination to account for a defensive
intangible asset as a separate unit of accounting which should be amortized to expense over the period the
asset diminishes in value. EITF 08-7 is effective for fiscal years beginning after December 15, 2008, with
early adoption prohibited. We will adopt EITF 08-7 in fiscal 2010 and it could materially affect how we
account for certain identifiable intangible assets that we may acquire in connection with any future
acquisitions we complete and account for pursuant to Statement 141(R), which could materially affect our
consolidated financial statements. Historically, we have generally utilized the intangible assets we acquire as
a part of our ongoing operations subsequent to the acquisition date.
Determination of the Useful Life of Intangible Assets: In April 2008, the FASB issued 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 FASB Statement No. 142, Goodwill and Other Intangible Assets. FSP
FAS 142-3 is effective for fiscal years beginning after December 15, 2008 and early adoption is prohibited.
We will adopt FSP FAS 142-3 in fiscal 2010 and do not believe it will have a material impact on our
consolidated financial statements.
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Source: ORACLE CORP, 10-K, June 29, 2009 Powered by Morningstar® Document Research℠