Allstate 2008 Annual Report Download - page 256

FSP No. EITF 99-20-1, Amendments to the Impairment Guidance of EITF Issue No. 99-20 (‘‘FSP EITF 99-20-1’’)
In January 2009, the FASB issued FSP EITF 99-20-1, which amends FASB Emerging Issues Task Force (‘‘EITF’’)
No. 99-20 ‘‘Recognition of Interest Income and Impairment on Purchased Beneficial Interest and Beneficial
Interests That Continue to Be Held by a Transferor or in Securitized Financial Assets,’’ (‘‘EITF 99-20’’), to align the
impairment guidance in EITF 99-20 with the impairment guidance and related implementation guidance in SFAS
No. 115 ‘‘Accounting for Certain Investments in Debt and Equity Securities’’. The provisions of this FASB staff
position are effective for reporting periods ending after December 15, 2008. The adoption of FSP EITF 99-20-1 did
not have a material effect on the results of operations or financial position of the Company.
Pending accounting standards
SFAS No. 141(R), Business Combinations (‘‘SFAS No. 141R’’)
In December 2007, the FASB issued SFAS No. 141R which replaces SFAS No. 141, ‘‘Business Combinations’’
(‘‘SFAS No. 141’’). Among other things, SFAS No. 141R broadens the scope of SFAS No. 141 to include all
transactions where an acquirer obtains control of one or more other businesses; retains the guidance to recognize
intangible assets separately from goodwill; requires, with limited exceptions, that all assets acquired and liabilities
assumed, including certain of those that arise from contractual contingencies, be measured at their acquisition
date fair values; requires most acquisition and restructuring-related costs to be expensed as incurred; requires
that step acquisitions, once control is acquired, be recorded at the full amounts of the fair values of the
identifiable assets, liabilities and the noncontrolling interest in the acquiree; and replaces the reduction of asset
values and recognition of negative goodwill with a requirement to recognize a gain in earnings. The provisions of
SFAS No. 141R are effective for fiscal years beginning after December 15, 2008 and are to be applied
prospectively only. Early adoption is not permitted. The Company will apply the provisions of SFAS No. 141R as
required when effective.
SFAS No. 160, Noncontrolling Interests in Consolidated Financial Statements—an amendment of ARB No. 51 (‘‘SFAS
No. 160’’)
In December 2007, the FASB issued SFAS No. 160 which clarifies that a noncontrolling interest in a
subsidiary is that portion of the subsidiary’s equity that is attributable to owners of the subsidiary other than its
parent or parent’s affiliates. Noncontrolling interests are required to be reported as equity in the consolidated
financial statements and as such net income will include amounts attributable to both the parent and the
noncontrolling interest with disclosure of the amounts attributable to each on the face of the Consolidated
Statements of Operations. SFAS No. 160 requires that all changes in a parent’s ownership interest in a subsidiary
when control of the subsidiary is retained, be accounted for as equity transactions. In contrast, when control over
a subsidiary is relinquished and the subsidiary is deconsolidated, SFAS No. 160 requires a parent to recognize a
gain or loss in net income as well as provide certain associated expanded disclosures. SFAS No. 160 is effective
as of the beginning of a reporting entity’s first fiscal year beginning after December 15, 2008. Early adoption is
prohibited. SFAS No. 160 requires prospective application as of the beginning of the fiscal year in which the
standard is initially applied, except for the presentation and disclosure requirements which are to be applied
retrospectively for all periods presented. The adoption of SFAS No. 160 is not expected to have a material effect
on the Company’s results of operations or financial position.
SFAS No. 161, Disclosures about Derivative Instruments and Hedging Activities—an amendment of FASB Statement
No. 133 (‘‘SFAS No. 161’’)
In March 2008, the FASB issued SFAS No. 161, which amends and expands the disclosure requirements for
derivatives currently accounted for in accordance with SFAS No. 133. The new disclosures are designed to
enhance the understanding of how and why an entity uses derivative instruments and how derivative instruments
affect an entity’s financial position, results of operations, and cash flows. The standard requires, on a quarterly
basis, quantitative disclosures about the potential cash outflows associated with the triggering of credit-related
contingent features, if any; tabular disclosures about the classification and fair value amounts of derivative
instruments reported in the statement of financial position; disclosure of the location and amount of gains and
losses on derivative instruments reported in the statement of operations; and qualitative information about how
and why an entity uses derivative instruments and how derivative instruments and related hedged items affect the
entity’s financial statements. SFAS No. 161 is effective for fiscal periods beginning after November 15, 2008, and is
to be applied on a prospective basis only. SFAS No. 161 affects disclosures and therefore implementation will not
impact the Company’s results of operations or financial position.
146
Notes