Autodesk 2010 Annual Report Download - page 160

AUTODESK, INC.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS—(Continued)
In February 2010, the FASB issued Accounting Standards Update (“ASU”) 2010-09 regarding ASC Topic
855 “Subsequent Events.” This ASU removes the requirement for SEC filers to disclose the date through which
management evaluated subsequent events in the financial statements, and was effective upon its issuance.
Autodesk adopted the ASU upon issuance. The adoption did not have an impact on Autodesk’s consolidated
financial position, results of operations or cash flows.
In August 2009, the FASB issued ASU 2009-05 regarding ASC Topic 820, “Fair Value Measurements and
Disclosures.” This ASU provides guidance on how to measure liabilities at fair value within the scope of ASC
Topic 820. This Update provides clarification that in circumstances in which a quoted price in an active market
for the identical liability is not available, a reporting entity is required to measure fair value using one or more of
the following techniques: 1) A valuation technique that uses: a. The quoted price of the identical liability when
traded as an asset, or b. Quoted prices for similar liabilities or similar liabilities when traded as assets, or 2)
Another valuation technique that is consistent with the principles of ASC Topic 820. Two examples would be an
income approach or a market approach. Autodesk adopted the changes represented by this ASU during
Autodesk’s fiscal quarter ended October 31, 2009. The adoption of ASU 2009-05 did not have a material impact
on Autodesk’s consolidated financial position, results of operations or cash flows.
In April 2009, the FASB issued three related FASB Staff Positions (“FSP”): (i) FSP 157-4, “Determining
Fair Value When the Volume and Level of Activity for the Asset or Liability have Significantly Decreased and
Identifying Transactions That Are Not Orderly” (“FSP 157-4”), (ii) FSP Statement of Financial Accounting
Standard (“SFAS”) 115-2 and SFAS 124-2, “Recognition and Presentation of Other-Than-Temporary
Impairments” (“FSP SFAS 115-2” and “SFAS 124-2”), and (iii) FSP SFAS 107-1 and Accounting Principles
Board (“APB”) 28-1, “Interim Disclosures about Fair Value of Financial Instruments” (“FSP SFAS 107” and
“APB 28-1”). FSP 157-4 provides guidance on how to determine the fair value of assets and liabilities under
SFAS 157, “Fair Value Measurements” (“SFAS 157”) in the current economic environment and reemphasizes
that the objective of a fair value measurement remains the determination of an exit price. If Autodesk were to
conclude that there has been a significant decrease in the volume and level of activity of the asset or liability in
relation to normal market activities, quoted market values may not be representative of fair value and the
Company may conclude that a change in valuation technique or the use of multiple valuation techniques may be
appropriate. FSP SFAS 115-2 and SFAS 124-2 modify the requirements for recognizing other-than-temporarily
impaired debt securities and revise the existing impairment model for such securities by modifying the current
intent and ability indicator in determining whether a debt security is other-than-temporarily impaired. FSP SFAS
107 and APB 28-1 enhance the disclosure of instruments under the scope of SFAS 157 for both interim and
annual periods. Autodesk adopted these FSPs during the quarter ended July 31, 2009. The adoption did not have
a material effect on the Company’s consolidated financial position, results of operations or cash flows.
In April 2009, the FASB issued FSP 141R-1, “Accounting for Assets Acquired and Liabilities Assumed in a
Business Combination That Arise from Contingencies” (“FSP 141R-1”). FSP 141R-1 amends the provisions in
Statement of Financial Accounting Standards No. 141 (revised 2007) “Business Combinations” (“SFAS 141R”)
for the initial recognition and measurement, subsequent measurement and accounting, and disclosures for assets
and liabilities arising from contingencies in business combinations. FSP 141R-1 eliminates the distinction
between contractual and non-contractual contingencies, including the initial recognition and measurement criteria
in SFAS 141R and instead carries forward most of the provisions in SFAS 141 for acquired contingencies. FSP
141R-1 was effective for Autodesk for contingent assets and contingent liabilities acquired in business
combinations for which the acquisition date was on or after February 1, 2009. The adoption of FSP 141R-1 did
not have a material effect on the Company’s consolidated financial position, results of operations or cash flows.
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