Virgin Media 2008 Annual Report Download - page 178

VIRGIN MEDIA INVESTMENT HOLDINGS LIMITED AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued)
Note 3—Recent Accounting Pronouncements (Continued)
In December 2007, the FASB issued Statement No. 141(R), Business Combinations, or FAS 141(R).
FAS 141(R) requires the acquiring entity in a business combination to prospectively recognize the full
fair value of assets acquired and liabilities assumed in the transaction (whether a full or partial
acquisition); establishes the acquisition-date fair value as the measurement objective for all assets
acquired and liabilities assumed; requires expensing of most transaction and restructuring costs; and
requires the acquirer to disclose to investors and other users all of the information needed to evaluate
and understand the nature and financial effect of the business combination. Further, regardless of the
business combination date, any subsequent changes to acquired uncertain tax positions and valuation
allowances associated with acquired deferred tax assets will no longer be applied to goodwill but will be
recognized as an adjustment to income tax expense. FAS 141(R) is effective for financial statements
issued for fiscal years beginning after December 15, 2008. While we are still addressing the impact of
the adoption of FAS 141(R), it is not expected to have a material impact on our consolidated financial
statements.
In December 2007, the FASB issued Statement No. 160, Noncontrolling Interests in Consolidated
Financial Statements- an Amendment of ARB No. 51, or FAS 160. FAS 160 establishes requirements for
ownership interests in subsidiaries held by parties other than ourselves (sometimes called ‘‘minority
interests’’) to be clearly identified, presented, and disclosed in the consolidated statement of financial
position within equity, but separate from the parent’s equity. All changes in the parent’s ownership
interests are required to be accounted for consistently as equity transactions and any non-controlling
equity investments in unconsolidated subsidiaries must be measured initially at fair value. FAS 160 is
effective, on a prospective basis, for fiscal years beginning after December 15, 2008; however,
presentation and disclosure requirements must be retrospectively applied to comparative financial
statements. While we are still addressing the impact of the adoption of FAS 160, it is not expected to
have a material impact on our consolidated financial statements.
In March 2008, the FASB issued Statement No. 161, Disclosures about Derivative Instruments and
Hedging Activities—an Amendment of FASB Statement No. 133, or FAS 161, which amends and expands
the disclosure requirements of FASB Statement No. 133, Accounting for Derivative Instruments and
Hedging Activities, or FAS 133, with the intent to provide users of financial statements with an enhanced
understanding of: (1) how and why an entity uses derivative instruments; (2) how derivative instruments
and related hedged items are accounted for under FAS 133 and its related interpretations; and (3) how
derivative instruments and related hedged items affect an entity’s financial position, financial
performance and cash flows. FAS 161 requires qualitative disclosures about objectives and strategies for
using derivatives, quantitative disclosures about fair value amounts of and gains and losses on derivative
instruments and disclosures about credit-risk-related contingent features in derivative instruments.
FAS 161 applies to all entities and all derivative instruments and is effective for financial statements
issued for fiscal years and interim periods beginning after November 15, 2008. We have not yet adopted
the provisions of FAS 161, but we do not expect it to have a material impact on our consolidated
financial statements.
In May 2008, the FASB issued Statement No. 162, The Hierarchy of Generally Accepted Accounting
Principles, or FAS 162. FAS 162 sets forth the level of authority to a given accounting pronouncement
or document by category. Where there might be conflicting guidance between two categories, the more
authoritative category will prevail. FAS 162 will become effective 60 days after the SEC approves the
PCAOB’s amendments to AU Section 411 of the AICPA Professional Standards. We do not expect
FAS 162 to have an effect on our financial position, statements of operations, or cash flows at this
time.
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