Dillard's 2009 Annual Report Download - page 58

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NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued)
1. Description of Business and Summary of Significant Accounting Policies (Continued)
financial statements. The Company adopted this guidance on February 1, 2009, and it did not have a
material impact on the Company’s consolidated financial statements.
Noncontrolling Interests in Consolidated Financial Statements
In December 2007, the FASB issued new accounting guidance related to the accounting for
noncontrolling interests in consolidated financial statements. The objective of the guidance is to
improve the relevance, comparability and transparency of the financial information that a reporting
entity provides in its consolidated financial statements by establishing accounting and reporting
standards for the noncontrolling interest in a subsidiary and for the deconsolidation of a subsidiary.
This guidance requires that noncontrolling interests in subsidiaries be reported in the equity section of
the controlling company’s balance sheet. The Company adopted this guidance on February 1, 2009, and
it did not have a material impact on the Company’s consolidated financial statements.
Fair Value Measurements and Disclosure
In September 2006, the FASB issued new accounting guidance related to fair value measurements.
This guidance defines fair value, establishes a framework for measuring fair value in GAAP, and
expands disclosures about fair value measurements. This guidance applies under other accounting
pronouncements that require or permit fair value measurements, the FASB having concluded in those
other accounting pronouncements that fair value is the relevant measurement attribute. This guidance
was effective for financial assets and liabilities in financial statements issued for fiscal years beginning
after November 15, 2007. The adoption of this portion of the guidance did not have a material impact
on the Company’s consolidated financial statements. In February 2008, the FASB permitted the delayed
application of this fair value guidance for all nonrecurring fair value measurements of nonfinancial
assets and nonfinancial liabilities until fiscal years beginning after November 15, 2008. The Company
adopted this remaining portion of the statement on February 1, 2009, and the adoption did not have a
material impact on the Company’s consolidated financial statements.
In April 2009, the FASB issued new accounting guidance related to interim disclosures about the
fair values of financial instruments. This guidance requires disclosures about fair value of financial
instruments in interim as well as in annual financial statements. The guidance was effective for interim
and annual periods ending after June 15, 2009. The Company adopted these provisions on August 1,
2009, which resulted in a new disclosure in the Company’s consolidated financial statements (see
Note 17 of these Notes to Condensed Consolidated Financial Statements).
Consolidation of Variable Interest Entities
In June 2009, the FASB issued new accounting guidance relating to the consolidation of variable
interest entities. 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;
• to require ongoing reassessments of whether an enterprise is the primary beneficiary of a
variable interest entity;
• to eliminate the quantitative approach previously required for determining the primary
beneficiary of a variable interest entity;
F-13