Saks Fifth Avenue 2011 Annual Report Download - page 36

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RECENTLY ISSUED ACCOUNTING PRONOUNCEMENTS
In December 2011, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update
No. 2011-11, Disclosures about Offsetting Assets and Liabilities (“ASU 2011-11”). ASU 2011-11 enhances
disclosure requirements regarding financial instruments and derivative instruments that are either offset or
subject to an enforceable master netting arrangement or similar agreement. ASU 2011-11 requires disclosure of
both net and gross information for these assets and liabilities in order to enhance comparability between those
entities that prepare their financial statements in accordance with U.S. GAAP and those entities that prepare
their financial statements in accordance with International Financial Reporting Standards. ASU 2011-11 is
effective for annual reporting periods beginning on or after January 1, 2013 and interim periods within those
annual periods. The adoption of ASU 2011-11 will not affect the consolidated financial position, results of
operations or cash flows of the Company.
In June 2011, the FASB issued Accounting Standards Update No. 2011-05, Presentation of Comprehensive
Income (“ASU 2011-05”). ASU 2011-05 requires reporting entities to present the total of 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 is
effective for fiscal years, and interim periods within those years, beginning after December 15, 2011 and is to be
applied retrospectively. The adoption of ASU 2011-05 will not affect the consolidated financial position, results
of operations, or cash flows of the Company. In December 2011, the FASB issued Accounting Standards Update
No. 2011-12, Deferral of the Effective Date for Amendments to the Presentation of Reclassifications of Items Out
of Accumulated Other Comprehensive Income in Accounting Standards Update No. 2011-05 (“ASU 2011-12”).
ASU 2011-12 defers the effective date of the portions of ASU 2011-05 relating to the presentation of
reclassification adjustments of items out of accumulated other comprehensive income. All other requirements
of ASU 2011-05 are not affected by ASU 2011-12. The adoption of ASU 2011-12 will not affect the consolidated
financial position, results of operations or cash flows of the Company.
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 IFRSs (“ASU 2011-04”), which amends the
existing fair value guidance to improve consistency in the application and disclosure of fair value measurements
in U.S. GAAP and International Financial Reporting Standards. ASU 2011-04 provides certain clarifications to the
existing guidance, changes certain fair value principles, and enhances disclosure requirements. ASU 2011-04 is
effective for interim and annual periods beginning after December 15, 2011 and is to be applied prospectively.
The Company does not expect the adoption of ASU 2011-04 to have an impact on the consolidated financial
statements.
ADOPTION OF NEW ACCOUNTING PRONOUNCEMENTS
In January 2010, the FASB issued Accounting Standards Update No. 2010-06, Improving Disclosures about Fair
Value Measurements (“ASU 2010-06”), which requires reporting entities to make new disclosures about
recurring or nonrecurring fair value measurements including significant transfers into and out of Level 1 and
Level 2 fair value measurements and information on purchases, sales, issuances, and settlements on a gross
basis in the reconciliation of Level 3 fair value measurements. ASU 2010-06 was effective for reporting periods
beginning after December 15, 2009, except for Level 3 reconciliation disclosures which became effective for
periods beginning after December 15, 2010. Adoption of this pronouncement did not impact the Company’s
consolidated financial statements.
Effective February 1, 2009, the Company retrospectively adopted a new standard related to accounting for
convertible debt instruments that may be settled in cash upon conversion (including partial cash settlement).
The standard specifies that issuers of such instruments should separately account for the liability and equity
components in a manner that will reflect the entity’s nonconvertible debt borrowing rate when interest cost is
recognized in subsequent periods. The effect of the adoption is disclosed in Note 6.
RELATED PARTY TRANSACTIONS
See Item 13, Certain Relationships and Related Transactions, in this Form 10-K.
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