Cardinal Health 2009 Annual Report Download - page 96

and expands disclosures about fair value measurements. This Statement is effective for fiscal years beginning
after November 15, 2007, and interim periods within those fiscal years. In February 2008, the FASB issued
FASB Staff Position (“FSP”) No. FAS 157-2 “Effective Date of FASB Statement No. 157.” This FSP delays the
effective date of SFAS No. 157 to fiscal years beginning after November 15, 2008, and interim periods within
those fiscal years for nonfinancial assets and nonfinancial liabilities, except for items that are recognized or
disclosed at fair value in the financial statements on a recurring basis. The Company adopted the provisions of
SFAS No. 157 in the first quarter of fiscal 2009 for all financial assets and financial liabilities. There was no
material impact on the Company’s financial position or results of operations upon adoption of this portion of the
Statement. The Company does not expect the adoption of the remaining portions of this statement, which will be
effective in fiscal 2010, to have a material impact on the Company’s financial position or results of operations.
In February 2007, the FASB issued SFAS No. 159, “The Fair Value Option for Financial Assets and
Liabilities—including an amendment of FASB Statement No. 115.” This Statement creates a fair value option
under which an entity may irrevocably elect fair value as the initial and subsequent measurement attribute for
certain assets and liabilities, on an instrument-by-instrument basis. If the fair value option is elected for an
instrument, all subsequent changes in fair value for that instrument shall be reported in earnings. The Company
chose not to elect the fair value option for any items that are not already required to be measured at fair value in
accordance with GAAP. As such, the adoption of SFAS No. 159 did not have an impact on the Company’s
financial position or results of operations.
In December 2007, the FASB issued SFAS No. 141(R), “Business Combinations,” and SFAS No. 160,
“Noncontrolling Interests in Consolidated Financial Statements.” These Statements provide guidance on the
accounting and reporting for business combinations and minority interests in consolidated financial statements.
These Statements are effective for fiscal years beginning after December 15, 2008. Upon adoption in fiscal 2010,
these Statements are expected to have a significant impact on the Company’s accounting and disclosure practices
for future business combinations.
In March 2008, the FASB issued SFAS No. 161, “Disclosures about Derivative Instruments and Hedging
Activities—an amendment of FASB Statement No. 133.” This Statement amends and expands the disclosure
requirements of SFAS No. 133. This Statement is effective for fiscal years and interim periods beginning after
November 15, 2008. The adoption of this Statement in the third quarter of fiscal 2009 did not have a material
impact on the Company’s financial position or results of operations.
In June 2008, the FASB issued FSP EITF 03-6-1, “Determining Whether Instruments Granted in Share-
Based Payment Transactions Are Participating Securities.” This FSP addresses whether instruments granted in
share-based payment transactions are participating securities prior to vesting and, therefore, need to be included
in the computation of earnings per share. This FSP is effective for fiscal years beginning after December 15,
2008, and interim periods within those fiscal years. The Company does not expect the adoption of this FSP in
fiscal 2010 will have a material impact on its financial position or results of operations.
In May 2009, the FASB issued SFAS No. 165, “Subsequent Events.” This Statement establishes general
standards of accounting for and disclosure of events that occur after the balance sheet date but before financial
statements are issued. This Statement is effective for fiscal years ending after June 15, 2009, and interim periods
within those fiscal years. The adoption of this Statement in the fourth quarter of fiscal 2009 did not have a
material impact on the Company’s financial position or results of operations.
In June 2009, the FASB issued SFAS No. 166, “Accounting for Transfers of Financial Assets—an
amendment of FASB Statement No. 140.” This Statement improves the relevance, representational faithfulness
and comparability of information provided about a transfer of financial assets, the effects of a transfer of
financial assets on an entity’s financial statements, and a transferor’s continuing involvement, if any, in financial
assets transferred. This Statement is effective for fiscal years beginning after November 15, 2009. The Company
is in the process of determining the impact of adopting this Statement.
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