Avis 2009 Annual Report Download - page 79

Table of Contents
In June 2009, the FASB issued new guidance related to ASC topic 105, Generally Accepted Accounting Principles . This topic allows the
FASB Accounting Standards Codification to become the single source of authoritative U.S. accounting and reporting standards, other than
guidance issued by the SEC. The Company adopted this guidance on July 1, 2009, as required, and it did not have a significant impact on its
financial statements.
In August 2009, the FASB issued Accounting Standards Update (“ASU”) No. 2009-05, “Measuring Liabilities at Fair Value” (“ASU
No. 2009-05”). ASU No. 2009-5 clarifies, among other things, that when a quoted price in an active market for the identical liability is not
available, an entity must measure fair value using one or more specified techniques. The Company adopted this guidance on July 1, 2009, as
required, and it had no impact on its financial statements.
Recently Issued Accounting Pronouncements
In June 2009, the FASB issued ASU No. 2009-16, “Accounting for Transfers of Financial Assets” (“ASU No. 2009-16”),
which (i) removes
the concept of a Qualifying Special Purpose Entity (“QSPE”) from ASC topic 860 and eliminates the exception from applying ASC topic
810, Consolidation
, to variable interest entities that are QSPEs, (ii) amends the accounting for transfers of financial assets and (iii) increases
the related disclosures about transfers of financial assets. This guidance applies to fiscal years beginning on or after November 15, 2009 and
transfers that occurred both before and after its effective date. The Company adopted this guidance on January 1, 2010, as required, and it
did not have a significant impact on its financial statements.
In December 2009, the FASB issued ASU No. 2009-17, “Accounting by Enterprises Involved with Variable Interest Entities” (“ASU
No. 2009-17”) . ASU No. 2009-17 formally incorporates into the FASB Codification amendments to FASB Interpretation No. 46(R) made
by Statement of Financial Accounting Standards (“SFAS”) No. 167 to require that a comprehensive qualitative analysis be performed to
determine whether a holder of variable interests in a variable interest entity also has a controlling financial interest in that entity. In addition,
the amendments require that the same type of analysis be applied to entities that were previously designated as qualifying special-purpose
entities. This guidance applies prospectively for fiscal years beginning on or after November 15, 2009. The Company adopted this guidance
on January 1, 2010, as required, and it did not have a significant impact on its financial statements.
In January 2010, the FASB issued ASU No. 2010-6, “Fair Value Measurements and Disclosures” (“ASU No. 2010-6”). ASU No. 2010-6
will expand the level of fair value disclosures by an entity, requiring information to be provided about movements of assets between levels 1
and 2, a reconciliation of purchases, sales, issuance and settlements for all level 3 instruments and fair value measurement disclosures for
each class of assets and liabilities. This guidance is effective for fiscal years beginning after December 15, 2010. The Company is currently
evaluating the impact on its financial statements.
Travelport. On August 23, 2006, the Company completed the sale of Travelport, which comprised the Company’s former travel
distribution services businesses for proceeds of approximately $4.1 billion, net of closing adjustments. The loss incurred on disposal of
Travelport included a $1.3 billion impairment charge reflecting the difference between Travelport’s carrying value and its estimated fair
value and a tax charge related to asset basis differences resulting from the 2001 acquisition of a Travelport subsidiary.
Realogy and Wyndham. On July 31, 2006, the Company completed the spin-offs of Realogy and Wyndham in tax-free distributions of one
share each of Realogy and Wyndham common stock for every four and five shares, respectively, of Cendant common stock held on July 21,
2006.
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3.
Discontinued Operations