Sallie Mae 2008 Annual Report Download - page 144

2. Significant Accounting Policies (Continued)
2008. Changes in fair value of Residual Interests on and after January 1, 2008 are recorded through the
statement of income. The Company has not elected the fair value option for any other financial instruments at
this time.
Business Combinations
In December 2007, the FASB issued SFAS No. 141(R), “Business Combinations.” SFAS No. 141(R)
requires the acquiring entity in a business combination to recognize the entire acquisition-date fair value of
assets acquired and liabilities assumed in both full and partial acquisitions; changes the recognition of assets
acquired and liabilities assumed related to contingencies; changes the recognition and measurement of
contingent consideration; requires expensing of most transaction and restructuring costs; and requires
additional disclosures to enable the users of the financial statements to evaluate and understand the nature and
financial effect of the business combination. SFAS No. 141(R) applies to all transactions or other events in
which the Company obtains control of one or more businesses. SFAS No. 141(R) applies prospectively to
business combinations for which the acquisition date is on or after the beginning of the reporting period
beginning on or after December 15, 2008, which for the Company is January 1, 2009.
Noncontrolling Interests in Consolidated Financial Statements — an Amendment of Accounting
Research Bulletin No. 51
In December 2007, the FASB issued SFAS No. 160, “Noncontrolling Interests in Consolidated Financial
Statements — an Amendment of Accounting Research Bulletin No. 51.” SFAS No. 160 requires reporting
entities to present noncontrolling (minority) interests as equity (as opposed to its current presentation as a
liability or mezzanine equity) and provides guidance on the accounting for transactions between an entity and
noncontrolling interests. SFAS No. 160 applies prospectively for reporting periods beginning on or after
December 15, 2008, which for the Company is January 1, 2009, except for the presentation and disclosure
requirements which will be applied retrospectively for all periods presented. Adoption of this standard will not
be material to the Company.
Disclosures about Derivative Investments and Hedging Activities — an Amendment of FASB Statement
No. 133
In March 2008, the FASB issued SFAS No. 161, “Disclosures about Derivative Investments and Hedging
Activities — an Amendment of FASB Statement No. 133.” SFAS No. 161 requires enhanced disclosures about
an entity’s derivative and hedging activities, including (1) how and why an entity uses derivative instruments,
(2) how derivative instruments and related hedged items are accounted for under SFAS No. 133, “Accounting
for Derivative Instruments and Hedging Activities,” and its related interpretations, and (3) how derivative
instruments and related hedged items affect an entity’s financial position, financial performance, and cash
flows. To meet those objectives, SFAS No. 161 requires qualitative disclosures about objectives and strategies
for using derivatives, quantitative disclosures about fair value amounts of and gains and losses on derivative
instruments, and disclosures about credit-risk-related contingent features in derivative agreements.
SFAS No. 161 is effective for financial statements issued for fiscal years and interim periods beginning after
November 15, 2008, which for the Company is January 1, 2009.
Determination of the Useful Life of Intangible Assets
In April 2008, the FASB issued FSP SFAS No. 142-3, “Determination of the Useful Life of Intangible
Assets,” which amends SFAS No. 142 regarding the factors that should be considered in developing the useful
lives for intangible assets with renewal or extension provisions. FSP SFAS No. 142-3 requires an entity to
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SLM CORPORATION
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued)
(Dollars in thousands, except per share amounts, unless otherwise stated)