U-Haul 2006 Annual Report Download - page 106

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AMERCO files a consolidated tax return with all of its legal subsidiaries, except for CFLIC which still files on a
stand alone basis. SAC Holding Corporation and its legal subsidiaries and SAC Holding II Corporation and its legal
subsidiaries file consolidated tax returns, which are in no way associated with AMERCO’ s consolidated returns.
Recent Accounting Pronouncements
On November 3, 2005, the Financial Accounting Standards Board (“FASB”) issued FSP SFAS 115-1 and SFAS
124-1: The Meaning of Other-Than-Temporary Impairment and Its Application to Certain Investments. This FSP
nullifies certain requirements of EITF 03-1 and supersedes EITF Topic No. D-44 “Recognition of Other-Than-
Temporary Impairment upon the Planned Sale of a Security Whose Cost Exceeds Fair Value.” This FSP addresses
(1) the determination of when an investment is considered impaired, (2) whether such impairment is other than
temporary, and (3) the measurement of an impairment loss. This FSP also includes accounting considerations
subsequent to the recognition of an other-than-temporary impairment and requires certain disclosures about
unrealized losses that have not been recognized as other-than-temporary impairments. FSP SFAS 115-1 and SFAS
124-1 is effective for periods beginning after December 15, 2005, with earlier application permitted. We do not
believe that the application of FSP SFAS 115-1 and SFAS 124-1 will have a material effect on our results of
operations or financial position.
The AICPA issued Statement of Position SOP 05-1, on September 29, 2005, to provide guidance on accounting
by insurance enterprises for internal policy replacements other than the replacement of traditional life contracts with
universal-life contracts specifically addressed in FASB Statement of Financial Accounting Standards (SFAS) 97.
The guidance applies to both short-duration and long-duration insurance contracts under SFAS 60 and to investment
contracts defined in SFAS 97. SOP 05-1 is effective for internal replacement transactions occurring in fiscal years
beginning after December 15, 2006, with earlier application encouraged. Retroactive application to previously
issued financial statements is not permitted. Initial application should be as of the start of the entity's fiscal year. We
do not believe that the application of SOP 05-1 will have a material effect on our results of operations or financial
position.
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