U-Haul 2008 Annual Report Download - page 26

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21
Income Taxes
The Company’ s tax returns are periodically reviewed by various taxing authorities. The final outcome of these
audits may cause changes that could materially impact our financial results.
AMERCO files a consolidated tax return with all of its legal subsidiaries, except for DGLIC, a subsidiary of
Oxford, which will file on a stand alone basis until 2012. SAC Holding Corporation and its legal subsidiaries and
SAC Holding II Corporation and its legal subsidiaries file separate consolidated tax returns, which are in no way
associated with AMERCO’ s consolidated returns.
Recent Accounting Pronouncements
In September 2006, the Financial Accounting Standards Board (“FASB”) issued SFAS 157, Fair Value
Measurements which establishes how companies should measure fair value when they are required to use a fair
value measure for recognition or disclosure purposes under GAAP. This statement is effective for financial
statements issued for fiscal years beginning after November 15, 2007 and interim periods within those years. The
provisions of SFAS 157 which have not been deferred by the FASB are effective for us in April 2008. The Company
does not believe that the adoption of this statement will have a material impact on our financial statements.
In February 2007, the FASB issued SFAS 159, The Fair Value Option for Financial Assets and Liabilities,
including an amendment of SFAS 115. This statement allows for a company to irrevocably elect fair value as the
measurement attribute for certain financial assets and financial liabilities. Changes in the fair value of such assets are
recognized in earnings. SFAS 159 is effective for fiscal years beginning after November 15, 2007. The provisions of
SFAS 159 are effective for us in April 2008. The Company does not believe that the adoption of this statement will
have a material impact on our financial statements.
In December 2007, the FASB issued SFAS 141(R), Business Combinations. SFAS 141(R) provides companies
with principles and requirements on how an acquirer recognizes and measures in its financial statements the
identifiable assets acquired, liabilities assumed, and any noncontrolling interest in the acquiree as well as the
recognition and measurement of goodwill acquired in a business combination. SFAS 141(R) also requires certain
disclosures to enable users of the financial statements to evaluate the nature and financial effects of the business
combination. Acquisition costs associated with the business combination will generally be expensed as incurred.
SFAS 141(R) is effective for business combinations occurring in fiscal years beginning after December 15, 2008,
which will require us to adopt these provisions for business combinations occurring in fiscal 2010 and thereafter.
Early adoption of SFAS 141(R) is not permitted.
In December 2007, the FASB issued SFAS 160, Noncontrolling Interests in Consolidated Financial Statements —
an amendment of ARB No. 51. This Statement clarifies that a noncontrolling interest in a subsidiary is an ownership
interest in the consolidated entity that should be reported as equity in the consolidated financial statements. This
Statement changes the way the consolidated income statement is presented by requiring net income to be reported at
amounts that include the amounts attributable to both the parent and the noncontrolling interest and to disclose those
amounts on the face of the income statement. SFAS 160 is effective for fiscal years beginning after December 15,
2008. Early adoption of SFAS 160 is not permitted. The Company does not believe that the adoption of this
statement will have a material impact on our financial statements.
In March 2008, the FASB issued SFAS 161, Disclosures about Derivative Instruments and Hedging Activities
which amends SFAS 133 to require expanded disclosures about derivative instruments and hedging activities
regarding (1) the ways in which an entity uses derivatives, (2) the accounting for derivatives and hedging activities,
and (3) the impact that derivatives have (or could have) on an entity's financial position, financial performance, and
cash flows. SFAS 161 is effective for financial statements of fiscal years and interim periods beginning after
November 15, 2008, with early application encouraged. While disclosures for earlier comparative periods presented
at initial adoption are not required, they are encouraged; following initial adoption, comparative disclosures are
required only for periods after such adoption. The Company is currently evaluating the impact that SFAS 161 will
have on our financial statements and disclosures.