Autodesk 2010 Annual Report Download - page 161

AUTODESK, INC.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS—(Continued)
Recently Issued Accounting Standards
In January 2010, the FASB issued ASU 2010-06 regarding ASC Topic 820 “Fair Value Measurements and
Disclosures.” This ASU requires additional disclosure regarding significant transfers in and out of Levels 1 and 2
fair value measurements and the reasons for the transfers. In addition, this ASU requires the Company to present
separately information about purchases, sales, issuances, and settlements, (on a gross basis rather than as one net
number), in the reconciliation for fair value measurements using significant unobservable inputs (Level 3). ASU
2010-06 clarifies existing disclosures regarding fair value measurement for each class of assets and liabilities and
the valuation techniques and inputs used to measure fair value for recurring and nonrecurring fair value
measurements that fall in either Level 2 or Level 3. This update also includes conforming amendments to the
guidance on employers’ disclosures about postretirement benefit plan asset (Subtopic 715-20). The changes
under ASU 2010-06 will be effective for Autodesk’s fiscal year beginning February 1, 2010, except for the
disclosures about purchases, sales, issuances and settlements in the roll forward of activity in Level 3 fair value
measurements, which are effective for Autodesk’s fiscal year beginning February 1, 2011. Autodesk believes that
the adoption of these new accounting pronouncements will not have a material impact on its consolidated
financial position, results of operations or cash flows.
In October 2009, the FASB issued ASU 2009-13 regarding ASC Subtopic 605-25 “Revenue Recognition—
Multiple-element Arrangements.” This ASU addresses criteria for separating the consideration in multiple-
element arrangements. ASU 2009-13 will require companies to allocate the overall consideration to each
deliverable by using a best estimate of the selling price of individual deliverables in the arrangement in the
absence of vendor-specific objective evidence or other third-party evidence of the selling price. In October 2009,
the FASB also issued ASU 2009-14 regarding ASC Topic 985 “Software: Certain Revenue Arrangements That
Include Software Elements.” This ASU modifies the scope of ASC Subtopic 965-605, “Software Revenue
Recognition,” to exclude (a) non-software components of tangible products and (b) software components of
tangible products that are sold, licensed, or leased with tangible products when the software components and
non-software components of the tangible product function together to deliver the tangible product’s essential
functionality. The changes under ASU 2009-13 and 2009-14 will be effective prospectively for revenue
arrangements entered into or materially modified in fiscal years beginning on or after June 15, 2010, and early
adoption is permitted. Autodesk currently plans to adopt the changes under ASU 2009-13 and 2009-14 effective
February 1, 2011. Autodesk is currently assessing the impact that the adoption of these new accounting
pronouncements will have on its consolidated financial position, results of operations or cash flows.
In June 2009, the FASB issued SFAS 166, “Accounting for Transfers of Financial Assets-an amendment of
FASB Statement No. 140” and SFAS 167, “Amendments to FASB Interpretation No. 46(R),” which update
accounting for securitizations and special-purpose entities. SFAS 166 eliminates the concept of a “qualifying
special-purpose entity,” changes the requirements for derecognizing financial assets and requires additional
disclosures. SFAS 167 amends the evaluation criteria to identify the primary beneficiary of a variable interest
entity provided by FASB Interpretation No. 46(R), “Consolidation of Variable Interest Entities—An
Interpretation of ARB No. 51.” This statement also amends the consolidation guidance applicable to variable
interest entities. Additionally, SFAS 167 requires ongoing reassessments of whether an enterprise is the primary
beneficiary of the variable interest entity. These statements will be effective for Autodesk’s fiscal year beginning
February 1, 2010. Autodesk believes that the adoption of SFAS 166 or 167 will not have a material effect on its
consolidated financial position, results of operations and cash flows.
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