Travelers 2008 Annual Report Download - page 176

THE TRAVELERS COMPANIES, INC. AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued)
1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued)
prior-period basic and diluted EPS data presented will be restated to reflect the retrospective
application of the FSP computational guidance.
Business Combinations
In December 2007, the FASB issued Revised Statement of Financial Accounting Standards
No. 141R, Business Combinations (FAS 141R), a replacement of FAS 141, Business Combinations.
FAS 141R provides revised guidance on how an acquirer recognizes and measures in its financial
statements the identifiable assets acquired, the liabilities assumed and any noncontrolling interest in the
acquiree. In addition, it provides revised guidance on the recognition and measurement of goodwill
acquired in the business combination.
FAS 141R also provides guidance specific to the recognition, classification, and measurement of
assets and liabilities related to insurance and reinsurance contracts acquired in a business combination.
FAS 141R applies to business combinations for acquisitions occurring on or after January 1, 2009.
Accordingly, FAS 141R does not impact the Company’s previous transactions involving purchase
accounting.
Noncontrolling Interests in Consolidated Financial Statements
In December 2007, the FASB issued Statement of Financial Accounting Standards No. 160,
Noncontrolling Interests in Consolidated Financial Statements—an Amendment of Accounting Research
Bulletin No. 51 (FAS 160). FAS 160 amends Accounting Research Bulletin No. 51 to establish
accounting and reporting standards for the noncontrolling interest in a subsidiary and for the
deconsolidation of a subsidiary. In addition, it clarifies that a noncontrolling interest in a subsidiary is
an ownership interest in the consolidated entity that should be reported as a component of equity in
the consolidated financial statements.
FAS 160 is effective on a prospective basis beginning January 1, 2009, except for the presentation
and disclosure requirements which are applied on a retrospective basis for all periods presented. The
Company does not expect the provisions of FAS 160 to have a material effect on its results of
operations, financial position or liquidity.
Employers’ Disclosures about Postretirement Benefit Plan Assets
In December 2008, the FASB issued FASB Staff Position (FSP) FAS 132(R)-1, Employers’
Disclosures about Postretirement Benefit Plan Assets. The FSP requires an employer to provide certain
disclosures about plan assets of its defined benefit pension or other postretirement plans. The
disclosures required include the investment policies and strategies of the plans, the fair value of the
major categories of plan assets, the inputs and valuation techniques used to develop fair value
measurements and a description of significant concentrations of risk in plan assets. The FSP is effective
for fiscal years ending after December 15, 2009.
164