ADP 2008 Annual Report Download - page 42

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In May 2008, the FASB issued SFAS No. 162, “The Hierarchy of Generally Accepted Accounting Principles” (“SFAS No. 162”). SFAS No.
162 is intended to improve financial reporting by identifying a consistent framework, or hierarchy, for selecting accounting principles to be
used in preparing financial statements that are presented in conformity with generally accepted accounting principles. SFAS No. 162 will
become effective 60 days following the SEC’ s approval of the Public Company Accounting Oversight Board amendments to AU Section 411,
“The Meaning of Present Fairly in Conformity With Generally Accepted Accounting Principles.” The Company does not anticipate the
adoption of SFAS No. 162 will have a material impact on its results of operations, cash flows or financial condition.
In April 2008, the FASB issued FSP FAS 142-3, “Determination of the Useful Life of Intangible Assets” (“FSP FAS 142-3”). FSP FAS 142-3
amends the factors that should be considered in developing renewal or extension assumptions used to determine the useful life of a recognized
intangible asset under FASB Statement No. 142, Goodwill and Other Intangible Asset. FSP FAS 142-3 also requires expanded disclosure
related to the determination of intangible asset useful lives. FSP FAS 142-3 is effective for financial statements issued for fiscal years
beginning after December 15, 2008, and interim periods within those fiscal years. The Company is currently evaluating the impact that the
adoption of FSP FAS 142-3 will have on its consolidated results of operation, cash flows or financial condition.
In March 2008, the FASB issued Statement No. 161, “Disclosures about Derivative Instruments and Hedging Activities” (“SFAS No. 161”).
SFAS No. 161 amends and expands the disclosure requirements of Statement No. 133, “Accounting for Derivative Instruments and Hedging
Activities.” It requires qualitative disclosures about objectives and strategies for using derivatives, quantitative disclosures about credit-risk-
related contingent features in derivative agreements. SFAS No. 161 is effective for financial statements issued for fiscal years and interim
p
eriods beginning after November 15, 2008. The Company does not anticipate the adoption of SFAS No. 161 will have a material impact on its
results of operations, cash flows or financial condition.
In December 2007, the FASB issued Statement No. 141 (revised 2007), “Business Combinations” (“SFAS No. 141R”). SFAS No. 141R
establishes principles and requirements for how the acquirer in a business combination recognizes and measures in its financial statements the
identifiable assets acquired, the liabilities assumed, any controlling interest in the business and the goodwill acquired. SFAS No. 141R further
requires that acquisition-related costs and costs associated with restructuring or exiting activities of an acquired entity will be expensed as
incurred. SFAS No. 141R also establishes disclosure requirements that will require disclosure on the nature and financial effects of the business
combination. SFAS No. 141R will impact business combinations for the Company that may be completed on or after July 1, 2009. The
Company cannot anticipate whether the adoption of SFAS No. 141R will have a material impact on its results of operations and financial
condition as the impact is solely dependent on whether the Company enters into any business combinations after July 1, 2009 and the terms of
such transactions.
In March 2007, the FASB ratified EITF Issue No. 06-11, "Accounting for Income Tax Benefits of Dividends on Share-Based Payment
Awards." EITF 06-11 requires companies to recognize, as an increase to additional paid-in capital, the income tax benefit realized from
dividends or dividend equivalents that are charged to retained earnings and paid to employees for non-vested equity-classified employee share-
based payment awards. EITF 06-11 is effective for fiscal years beginning after September 15, 2007. The Company does not expect EITF 06-11
to have a material impact on its consolidated results of operations or cash flows.
In February 2007, the FASB issued SFAS No. 159, “The Fair Value Option for Financial Assets and Financial Liabilities” (“SFAS No. 159”).
SFAS No. 159 is effective for fiscal years beginning after November 15, 2007. This statement provides companies with an option to measure
selected financial assets and liabilities at fair value. The Company has not elected to measure such selected financial assets and liabilities at fair
value. As such, the Company does not expect the adoption of SFAS No. 159 to have a material impact on its consolidated results of operations,
cash flows or financial condition.
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