Union Pacific 2009 Annual Report Download - page 46

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46
in our Consolidated Statements of Financial Position. We are still evaluating the impact on our
Consolidated Statements of Cash Flows related to the adoption of this standard. The value of the
outstanding undivided interest held by investors under our sale of receivables program at December 31,
2009 was $400 million.
In June 2009, the FASB issued Statement No. 167, Amendments to FASB Interpretation No. 46(R) (FAS
167). FAS 167 retains the scope of Interpretation 46(R), Consolidation of Variable Interest Entities, with
the addition of entities previously considered qualifying special-purpose entities, as the concept of these
entities was eliminated in FASB Statement No. 166, Accounting for Transfers of Financial Assets—an
amendment of FASB Statement No. 140. FAS 167 will be effective for us beginning in 2010. The
adoption of FAS 167 will not affect our consolidated financial position, results of operations, or cash
flows.
In June 2009, the FASB issued Statement No. 168, The FASB Accounting Standards CodificationTM and
the Hierarchy of Generally Accepted Accounting Principles—a replacement of FASB Statement No. 162
(FAS 168). The Codification became the source of authoritative GAAP recognized by the FASB to be
applied by nongovernmental entities. Rules and interpretive releases of the SEC under authority of
federal securities laws are also sources of authoritative GAAP for SEC registrants. On the effective date
of FAS 168, the Codification superseded all then-existing non-SEC accounting and reporting standards.
All other nongrandfathered non-SEC accounting literature not included in the Codification became
nonauthoritative. FAS 168 was effective for financial statements issued for interim and annual periods
ending after September 15, 2009. The adoption of FAS 168 did not affect our consolidated financial
position, results of operations, or cash flows.
In May 2009, the FASB issued Statement No. 165, Subsequent Events (FAS 165) (codified as FASB ASC
855-10-50). FAS 165 establishes general standards of accounting for and disclosures of events that occur
after the balance sheet date but before financial statements are issued or are available to be issued. It
requires the disclosure of the date through which an entity has evaluated subsequent events and the basis
for that date. FAS 165 was effective for interim or annual financial periods ending after June 15, 2009.
The adoption of FAS 165 did not affect our consolidated financial position, results of operations, or cash
flows.
In April 2009, the FASB issued FSP No. FAS 107-1 and APB 28-1, Interim Disclosures about Fair Value
of Financial Instruments (codified as FASB ASC 820-10-50). This FSP amends FASB Statement No.
107, to require disclosures about fair values of financial instruments for interim reporting periods as well
as in annual financial statements. The FSP also amends APB Opinion No. 28 to require those disclosures
in summarized financial information at interim reporting periods. This FSP was effective for interim
reporting periods ending after June 15, 2009. The adoption of this FSP did not affect our consolidated
financial position, results of operations, or cash flows.
In December 2008, the FASB issued FSP FAS 132(R)-1, Employers’ Disclosure about Postretirement
Benefit Plan Assets (codified as FASB ASC 715-20-50), which amended Statement 132(R) to require
more detailed disclosures about employers' pension plan assets. New disclosures include more
information on investment strategies, major categories of plan assets, concentrations of risk within plan
assets and valuation techniques used to measure the fair value of plan assets. This new standard required
new disclosures only, and had no impact on our consolidated financial position, results of operations or
cash flows. These new disclosures are included in Note 5 to the Consolidated Financial Statements.
Change in Accounting Principle – We have historically accounted for rail grinding costs as a capital
asset. Beginning in the first quarter of 2010, we will change our accounting policy for rail grinding costs
from a capitalization method, under which we have capitalized the cost of rail grinding and depreciated
such capitalized costs, to a direct expense method, under which we will expense rail grinding costs as
incurred. The expense as incurred method is preferable, as it eliminates the subjectivity in determining