Pep Boys 2009 Annual Report Download - page 94

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RECENT ACCOUNTING STANDARDS
In December 2008, the Financial Accounting Standards Board (FASB) issued updated guidance on
employers’ disclosures about postretirement benefit plan assets, which is included in the Accounting
Standards Codification (ASC) 715 ‘‘Compensation—Retirement Benefits.’’ The guidance requires
additional disclosures about plan assets of a defined benefit pension or other postretirement plans and
is effective for fiscal years ending after December 15, 2009. The adoption did not have a material
impact on the Company’s consolidated financial position or results of operations as it only amends the
required disclosures.
In October 2009, the FASB issued Accounting Standards Update (ASU) 2009-13 ‘‘Revenue
Recognition (Topic 605)—Multiple-Deliverable Revenue Arrangements a consensus of the FASB
Emerging Issues Task Force,’’ (ASU 2009-13). This update eliminates the residual method of allocation
and requires that consideration be allocated to all deliverables using the relative selling price method.
ASU 2009-13 is effective for material revenue arrangements entered into or materially modified in
fiscal years beginning on or after June 15, 2010. The Company does not believe the adoption of ASU
2009-13 will have a material impact on its consolidated financial statements.
In January 2010, the FASB issued ASU 2010-06 ‘‘Fair Value Measurements—Improving
Disclosures on Fair Value Measurements’’ (ASU 2010-06). This guidance requires new disclosures
surrounding transfers in and out of level 1 or 2 in the fair value hierarchy and also requires that in the
reconciliation of level 3 inputs, the entity should report separately information on purchases, sales,
issuances or settlements. The increased disclosures should be reported for each class of assets or
liabilities. ASU 2010-06 also clarifies existing disclosures for the level of disaggregating, disclosures
about valuation techniques and inputs used to determine level 2 or 3 fair value measurements and
includes conforming amendments to the guidance on employers’ disclosures about postretirement
benefit plan assets ASC 715. ASU 2010-06 is effective for interim and annual reporting periods
beginning after December 15, 2009 except for the disclosures about purchases, sales, issuances or
settlements in the roll forward activity for level 3 fair value measurements which are effective for
interim and annual periods beginning after December 15, 2010. The adoption of ASU 2010-06 for
requirements that are effective December 15, 2009 did not have a material affect on the Company’s
consolidated financial statements. The Company is evaluating the impact on its consolidated financial
statements for those requirements of ASU 2010-06 which are effective December 15, 2010.
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