Activision 2008 Annual Report Download - page 108

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94
respect to the accounting for the non-refundable portion of a payment made by a research and
development entity for future research and development activities. Under this conclusion, an entity
is required to defer and capitalize non-refundable advance payments made for research and
development activities until the related goods are delivered or the related services are performed.
EITF 07-03 is effective for interim or annual reporting periods in fiscal years beginning after
December 15, 2007 and requires prospective application for new contracts entered into after the
effective date. The adoption of EITF 07-03 did not 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” (“SFAS
No. 161”). SFAS No. 161 changes the disclosure requirements for derivative instruments and
hedging activities. Entities are required to provide enhanced disclosures about (a) how and why an
entity uses derivative instruments, (b) how derivative instruments and related hedged items are
accounted for under Statement No. 133 and its related interpretations, and (c) how derivative
instruments and related hedged items affect an entity’s financial position, financial performance,
and cash flows. The guidance in SFAS No. 161 is effective for financial statements issued for
fiscal years and interim periods beginning after November 15, 2008, with early application
encouraged. SFAS No. 161 encourages, but does not require, comparative disclosures for earlier
periods at initial adoption. The adoption of SFAS No. 161 did not have a material impact on our
Consolidated Financial Statements.
In April 2008, the FASB issued FSP FAS 142-3, “Determination of the Useful Life of
Intangible Assets”. FSP FAS 142-3 amends the factors an entity should consider in developing
renewal or extension assumptions used in determining the useful life of recognized intangible
assets under SFAS No. 142, “Goodwill and Other Intangible Assets”. This guidance for
determining the useful life of a recognized intangible asset applies prospectively to intangible
assets acquired individually or with a group of other assets in either an asset acquisition or
business combination. FSP FAS 142-3 is effective for fiscal years, and interim periods within
those fiscal years, beginning after December 15, 2008, and early adoption is prohibited. The
adoption of FSP FAS 142-3 did not have a material impact on our Consolidated Financial
Statements.