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Recent Accounting Pronouncements
SFAS No. 141(R) — In December 2007, the FASB issued SFAS No. 141 (revised 2007), Business Combi-
nations (“SFAS No. 141(R)”). In SFAS No. 141(R), the FASB retained the fundamental requirements of
SFAS No. 141 to account for all business combinations using the acquisition method (formerly the purchase
method) and for an acquiring entity to be identified in all business combinations. However, the new standard
requires the acquiring entity in a business combination to recognize all (and only) the assets acquired and liabilities
assumed in the transaction; establishes the acquisition-date fair value as the measurement objective for all assets
acquired and liabilities assumed; requires transaction costs to be expensed as incurred; and requires the acquirer to
disclose to investors and other users all of the information they need to evaluate and understand the nature and
financial effect of the business combination. SFAS No. 141(R) is effective for annual periods beginning on or after
December 15, 2008. Accordingly, any business combinations will be recorded and disclosed following existing
GAAP until January 1, 2009. The Company expects that SFAS No. 141(R) will have an impact on its consolidated
financial statements when effective, but the nature and magnitude of the specific effects will depend upon the
nature, terms and size of the acquisitions consummated after the effective date.
SFAS No. 160 — In December 2007, the FASB issued SFAS No. 160, Noncontrolling Interests in Consolidated
Financial Statements (“SFAS No. 160”).SFAS No. 160 amends Accounting Research Bulletin No. 51, Consol-
idated Financial Statements, and requires all entities to report noncontrolling (minority) interests in subsidiaries
within equity in the consolidated financial statements, but separate from the parent shareholders’ equity.
SFAS No. 160 also requires any acquisitions or dispositions of noncontrolling interests that do not result in a
change of control to be accounted for as equity transactions. Further, SFAS No. 160 requires that a parent recognize
a gain or loss in net income when a subsidiary is deconsolidated. SFAS No. 160 is effective for annual periods
beginning on or after December 15, 2008. The Company is currently evaluating whether the adoption of
SFAS No. 160 will have a material impact on its consolidated financial statements.
SFAS No. 159 —In February 2007, the FASB issued SFAS No. 159, The Fair Value Option for Financial
Assets and Financial Liabilities (“SFAS No. 159”). SFAS No. 159 permits entities to choose, at specified election
dates, to measure eligible items at fair value (“fair value option”) and to report in earnings unrealized gains and
losses on those items for which the fair value option has been elected. SFAS No. 159 also requires entities to display
the fair value of those assets and liabilities on the face of the balance sheet. SFAS No. 159 establishes presentation
and disclosure requirements designed to facilitate comparisons between entities that choose different measurement
attributes for similar types of assets and liabilities. SFAS No. 159 is effective as of the beginning of an entity’s first
fiscal year beginning after November 15, 2007. The Company does not believe the adoption of this pronouncement
will have a material impact on its consolidated financial statements.
SFAS No. 157 — In September 2006, the FASB issued SFAS No. 157, Fair Value Measurements
(“SFAS No. 157”). SFAS No. 157 defines fair value, establishes a framework for measuring fair value and
expands disclosure of fair value measurements. SFAS No. 157 applies under other accounting pronouncements that
require or permit fair value measurements and accordingly, does not require any new fair value measurements.
SFAS No. 157 is effective for financial statements issued for fiscal years beginning after November 15, 2007. In
February 2008, the effective date of SFAS No. 157 was delayed for one year by Final FASB Staff Position
No. FAS 157-2, Effective Date of FASB Statement No. 157, for certain non-financial assets and non-financial
liabilities, except those that are recognized or disclosed at fair value in the financial statements on a recurring basis
(at least annually). The Company is currently evaluating the impact of this pronouncement on its financial
statements.
72
CLEARWIRE CORPORATION AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS — (Continued)