Oracle 2010 Annual Report Download - page 217

comprehensive income, the components of net income, and the components of other
comprehensive income either in a single continuous statement of comprehensive income or in
two separate but consecutive statements. ASU 2011-05 eliminates the option to present the
components of other comprehensive income as part of the statement of equity. ASU 2011-05
is effective for us in our first quarter of fiscal 2013 and should be applied retrospectively. We
are currently evaluating the impact of our pending adoption of ASU 2011-05 on our
consolidated financial statements.
Amendments to Achieve Common Fair Value Measurement and Disclosure
Requirements: In May 2011, the FASB issued Accounting Standards Update No. 2011-04,
Amendments to Achieve Common Fair Value Measurement and Disclosure Requirements in
U.S. GAAP and International Financial Reporting Standards (Topic 820)—Fair Value
Measurement (ASU 2011-04), to provide a consistent definition of fair value and ensure that
the fair value measurement and disclosure requirements are similar between U.S. GAAP and
International Financial Reporting Standards. ASU 2011-04 changes certain fair value
measurement principles and enhances the disclosure requirements particularly for level 3 fair
value measurements (as defined in Note 4 below). ASU 2011-04 is effective for us in our
fourth quarter of fiscal 2012 and should be applied prospectively. We are currently evaluating
the impact of our pending adoption of ASU 2011-04 on our consolidated financial statements.
Disclosure of Supplementary Pro Forma Information for Business Combinations: In
December 2010, the FASB issued Accounting Standards Update No. 2010-29, Disclosure of
Supplementary Pro Forma Information for Business Combinations (Topic 805)—Business
Combinations (ASU 2010-29), to improve consistency in how the pro forma disclosures are
calculated. Additionally, ASU 2010-29 enhances the disclosure requirements and requires
description of the nature and amount of any material, nonrecurring pro forma adjustments
directly attributable to a business combination. ASU 2010-29 is effective for us in fiscal 2012
and should be applied prospectively to business combinations for which the acquisition date is
after the effective date. Early adoption is permitted. We will adopt ASU 2010-29 in fiscal
2012 and do not believe it will have a material impact on our consolidated financial
statements.
Performing Step 2 of the Goodwill Impairment Test: In December 2010, the FASB issued
Accounting Standards Update No. 2010-28, When to Perform Step 2 of the Goodwill
Impairment Test for Reporting Units with Zero or Negative Carrying Amounts (Topic
350)—Intangibles—Goodwill and Other (ASU 2010-28). ASU 2010-28 amends the criteria
for performing Step 2 of the goodwill impairment test for reporting units with zero or
negative carrying amounts and requires performing Step 2 if qualitative factors indicate that it
is more likely than not that a goodwill impairment exists. We will adopt ASU 2010-28 in
fiscal 2012 and any impairment to be recorded upon adoption will be recognized as an
adjustment to our beginning retained earnings. We will adopt ASU 2010-28 in fiscal 2012 and
do not believe it will have a material impact on our consolidated financial statements.
Milestone Method of Revenue Recognition: In April 2010, the FASB issued Accounting
Standards Update No. 2010-17, Revenue Recognition—Milestone Method (Topic
605)—Revenue Recognition (ASU 2010-17). ASU 2010-17 provides guidance on defining the
milestone and determining when the use of the milestone method of revenue recognition for
research or development transactions is appropriate. It provides criteria for evaluating if the
milestone is substantive and clarifies that a vendor can recognize consideration that is
contingent upon achievement of a milestone as revenue in the period in which the milestone is
achieved, if the milestone meets all the criteria to be considered substantive. ASU 2010-17 is
effective for us in our first quarter of fiscal 2012 and should be applied prospectively. Early
adoption is permitted. If we were to adopt ASU 2010-17 prior to the first quarter of fiscal
2012, we must apply it retrospectively to the beginning of the fiscal year of adoption and to
all interim periods presented. We will adopt ASU 2010-17 in fiscal 2012 and do not believe it
will have a material impact on our consolidated financial statements.
Disclosure Requirements Related to Fair Value Measurements: In January 2010, the
FASB issued Accounting Standards Update No. 2010-06, Improving Disclosures about Fair
Value Measurements (Topic 820)—Fair Value Measurements and Disclosures (ASU
2010-06), to add additional disclosures about the different classes of assets and liabilities
measured at fair value, the valuation techniques and inputs used, and the activity in Level 3
fair value measurements. Certain provisions of this update will be effective for us in fiscal
2012 and we and do not believe these provisions will have a material impact on our
consolidated financial statements.
Source: ORACLE CORP, 10-K, June 28, 2011 Powered by Morningstar® Document Research℠