Autodesk 2009 Annual Report Download - page 143

AUTODESK, INC.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS—(Continued)
and changes in accounting for deferred tax asset valuation allowances and acquired income tax uncertainties after
the measurement period, which will impact income tax expense. In addition, acquired in-process research and
development (IPR&D) is capitalized as an intangible asset with an indefinite useful life. This statement applies to
acquisitions that occur beginning with Autodesk’s fiscal year beginning February 1, 2009, and has been adopted
on a prospective basis, with the exception of the income tax impact, which will be applied retrospectively to
acquisitions that closed prior to February 1, 2009. The impact of SFAS 141R on our consolidated financial
position, results of operations and cash flows will be dependent on the number and size of business combinations
that we consummate subsequent to the adoption of the standard, as well as the valuation and allocation of the net
assets acquired.
In December 2007, the FASB also issued Statement of Financial Accounting Standards No. 160 “Non-
controlling Interests in Consolidated Financial Statements—an amendment of ARB No. 51” (“SFAS 160”).
SFAS 160 establishes accounting and reporting standards for ownership interests in subsidiaries held by parties
other than the parent, the amount of consolidated net income attributable to the parent and to the non-controlling
interest, changes in a parent’s ownership interest, and the valuation of retained non-controlling equity
investments when a subsidiary is deconsolidated. SFAS 160 also establishes disclosure requirements that clearly
identify and distinguish between the interests of the parent and the interests of the non-controlling owners. This
statement is effective for Autodesk’s fiscal year beginning February 1, 2009. Autodesk does not believe the
adoption of SFAS 160 will have a material effect on Autodesk’s consolidated financial position, results of
operations or cash flows.
In February 2007, the FASB issued Statement of Financial Accounting Standards No. 159, “The Fair Value
Option for Financial Assets and Financial Liabilities—including an amendment of FASB Statement No. 115”
(“SFAS 159”), which expands the use of fair value measurement by permitting entities to choose to measure
many financial instruments and certain other items at fair value at specified election dates. Autodesk adopted this
statement as of February 1, 2008. The adoption of SFAS 159 did not have a material effect on Autodesk’s
consolidated financial position, results of operations or cash flows.
In September 2006, the FASB issued Statement of Financial Accounting Standards No. 157, “Fair Value
Measurements” (“SFAS 157”), which defines fair value, establishes a framework for measuring fair value and
expands disclosures about fair value measurements. SFAS 157 does not require any new fair value measurements
but instead is intended to eliminate inconsistencies with respect to this topic found in various other accounting
pronouncements. Autodesk adopted the statement for financial assets and liabilities as of February 1, 2008. The
remainder of the statement, which pertains to nonfinancial assets and liabilities, is effective as of February 1,
2009 for Autodesk’s 2010 fiscal year. Autodesk believes the adoption of the remaining aspects of SFAS 157 will
not have a material effect on Autodesk’s consolidated financial position, results of operations or cash flows. In
October 2008, the FASB issued FSP 157-3 (“FSP 157-3”), “Determining the Fair Value of a Financial Asset
When the Market for That Asset Is Not Active.” FSP 157-3 clarifies the application of SFAS No. 157 in a market
that is not active and addresses application issues such as the use of internal assumptions when relevant
observable data does not exist, the use of observable market information when the market is not active and the
use of market quotes when assessing the relevance of observable and unobservable data. FSP 157-3 is effective
for all periods presented in accordance with SFAS No. 157. The guidance in FSP 157-3 was effective
October 10, 2008 and did not have an impact on Autodesk upon adoption. See Note 12, “Financial Instruments,”
for information and related disclosures regarding Autodesk’s fair value measurements.
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