Symantec 2006 Annual Report Download - page 88

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first quarter of fiscal 2007. Generally, the approach in SFAS No. 123R is similar to the approach described in
SFAS No. 123. However, SFAS No. 123R requires all share-based payments to employees, including grants
of employee stock options and purchases under employee stock purchase plans, to be recognized in the
Consolidated Statements of Income based on their fair values. Pro forma disclosure of fair value recognition
will no longer be an alternative. See Stock-Based Compensation above for information related to the pro forma
effects on our reported net income and net income per share when applying the fair value recognition
provisions of the previous SFAS No. 123 to stock-based employee compensation. On April 1, 2006, we
adopted SFAS No. 123R using the modified prospective method. We expect the adoption of SFAS No. 123R
to have a material impact on our consolidated financial position and results of operations.
In December 2004, the FASB issued SFAS No. 153, Exchanges of Nonmonetary Assets Ì An
Amendment of APB Opinion No. 29, Accounting for Nonmonetary Transactions. SFAS No. 153 eliminates
the exception from fair value measurement for nonmonetary exchanges of similar productive assets in
paragraph 21(b) of APB Opinion No. 29, Accounting for Nonmonetary Transactions, and replaces it with an
exception for exchanges that do not have commercial substance. SFAS No. 153 specifies that a nonmonetary
exchange has commercial substance if the future cash flows of the entity are expected to change significantly
as a result of the exchange. SFAS No. 153 is effective for fiscal periods beginning after June 15, 2005. The
adoption of SFAS No. 153 did not have a material impact on our consolidated financial position, results of
operations, or cash flow.
In December 2004, the FASB issued FSP FAS 109-1, Application of FASB Statement No. 109,
""Accounting for Income Taxes,'' to the Tax Deduction on Qualified Production Activities Provided by the
American Jobs Creation Act of 2004. The American Jobs Creation Act introduces a special tax deduction on
qualified production activities. FSP FAS 109-1 clarifies that this tax deduction should be accounted for as a
special deduction in accordance with SFAS No. 109. FSP FAS 109-1 did not have a material impact on our
consolidated financial position, results of operations, or cash flows.
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