Pottery Barn 2008 Annual Report Download - page 53

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NEW ACCOUNTING PRONOUNCEMENTS
On February 4, 2008, we adopted Statement of Financial Accounting Standards (“SFAS”) No. 157, Fair Value
Measurements, for all financial assets and liabilities. SFAS No. 157 establishes a standard definition for fair
value, provides a framework under generally accepted accounting principles for measuring fair value and
expands disclosure requirements for fair value measurements. In December 2007, the Financial Accounting
Standards Board (“FASB”) issued FASB Staff Position (“FSP”) No. 157-b, Effective Date of FASB No.157,
which delayed the effective date of SFAS No. 157 for all nonfinancial assets and liabilities (except those
recognized or disclosed at fair value in the financial statements on a recurring basis) to annual reporting periods
beginning after November 15, 2008. We do not have significant financial assets and liabilities or nonfinancial
assets and liabilities recognized or disclosed at fair value on a recurring basis and, as such, the adoption of SFAS
No. 157 did not have a material impact on our consolidated financial position, results of operations or cash flows.
Further, we do not expect the adoption of FSP No. 157-b to have a material impact on our consolidated financial
position, results of operations or cash flows. Additional disclosures will be provided in our Form 10-Q for our
first fiscal quarter ending May 3, 2009.
On February 4, 2008, we adopted the provisions of SFAS No. 159, The Fair Value Option for Financial Assets
and Financial Liabilities – Including an Amendment of FASB Statement No. 115. SFAS No. 159 permits entities
to choose to measure eligible items at fair value at specified election dates and report unrealized gains and losses
on items for which the fair value option has been elected in earnings at each subsequent reporting date. The
adoption of SFAS No. 159 did not 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 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, with limited exceptions, to business combinations
for which the acquisition date is on or after the first fiscal period beginning on or after December 15, 2008. 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.
41
Form 10-K