Pottery Barn 2007 Annual Report Download - page 47

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for which the fair value option has been elected in earnings at each subsequent reporting date. This Statement is
effective for fiscal years beginning after November 15, 2007. We do not expect the adoption of SFAS 159 to
have a material impact on our consolidated financial position, results of operations or cash flows.
In December 2007, the FASB issued SFAS No. 141 (Revised 2007), Business Combinations (“SFAS 141(R)”).
SFAS 141(R) will significantly change the accounting for business combinations. Under SFAS 141(R), an
acquiring entity will be required to recognize all the assets acquired and liabilities assumed in a transaction at the
acquisition date fair value with limited exceptions. SFAS 141(R) will change the accounting treatment for certain
specific acquisition-related items, including expensing acquisition-related costs as incurred, valuing non-
controlling interests (minority interests) at fair value at the acquisition date, and expensing restructuring costs
associated with an acquired business. SFAS 141(R) applies prospectively to business combinations for which the
acquisition date is on or after the first fiscal period beginning on or after December 15, 2008, except for
adjustments to a previously acquired entity’s deferred tax assets and uncertain tax position balances occurring
outside the measurement period, which are recorded as a component of income tax expense in the period of
adjustment, rather than goodwill. Early adoption is not permitted. Generally, the effect of SFAS 141(R) will
depend on future acquisitions and, as such, we do not currently expect the adoption of this Statement to have a
material impact on our consolidated financial position, results of operations or cash flows.
37
Form 10-K