Avid 2009 Annual Report Download - page 65

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60
Recent Accounting Pronouncements
In October 2009, the FASB issued Accounting Standards Update No. 2009-13, Multiple-Deliverable Revenue
Arrangements, an amendment to ASC topic 605, Revenue Recognition, and Accounting Standards Update No. 2009-14,
Certain Revenue Arrangements That Include Software Elements, an amendment to ASC subtopic 985-605, Software –
Revenue Recognition. See the section titled ―Revenue Recognition and Allowance for Doubtful Accounts‖ in this note for a
further discussion of this guidance.
In June 2009, the FASB issued SFAS No. 167, Amendments to FASB Interpretation No. 46(R) (now codified within ASC
topic 810, Consolidation). This guidance requires an enterprise to perform an analysis to determine whether the enterprise’s
variable interest or interests give it a controlling financial interest in a variable interest entity. This analysis identifies the
primary beneficiary of a variable interest entity as one with the power to direct the activities of a variable interest entity that
most significantly impact the entity’s economic performance and the obligation to absorb losses of the entity that could
potentially be significant to the variable interest. The guidance is effective as of the beginning of the annual reporting
period commencing after November 15, 2009, or January 1, 2010 for Avid, with early adoption prohibited. Adoption is not
expected to have a significant impact on the Company’s financial position or results of operations.
C. CASH, CASH EQUIVALENTS AND MARKETABLE SECURITIES
Cash and Cash Equivalents
The costs (amortized costs of debt instruments) and fair values of the Company’s available for sale securities classified as
cash equivalents at December 31, 2009 were as follows (in thousands):
Costs
Net Unrealized
Gains (Losses)
Fair Values
Money market
$
10,977
$
—
$
10,977
Certificates of deposit
750
—
750
Commercial paper
1,500
(1
)
1,499
$
13,227
$
(1
)
$
13,226
Marketable Securities
The costs (amortized cost of debt instruments) and fair values of marketable securities at December 31, 2009 and 2008
were as follows (in thousands):
Costs
Net Unrealized
Gains (Losses)
Fair Values
2009
Certificates of deposit
$
3,400
$
1
$
3,401
Commercial paper
1,000
(1
)
999
Municipal bonds
7,465
1
7,466
Corporate bonds
1,256
3
1,259
Foreign bonds
2,477
—
2,477
Asset-backed securities
6
—
6
Agency bonds
1,001
1
1,002
Agency discount notes
750
—
750
$
17,355
$
5
$
17,360