DuPont 2008 Annual Report Download - page 68

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business combinations than current requirements. Thus, accounting for potential future business combinations after
adoption may produce a significantly different result and financial statement impact than under current standards.
In December 2007, the FASB issued SFAS No. 160, “Noncontrolling Interests in Consolidated Financial
Statements – an amendment of Accounting Research Bulletin No. 51” (SFAS 160) which changes the
accounting and reporting for minority interests and for the deconsolidation of a subsidiary. It also clarifies that a
third-party, non-controlling interest in a consolidated subsidiary is an ownership interest in the consolidated entity
that should be reported as equity in the consolidated financial statements. SFAS 160 also requires disclosure that
clearly identifies and distinguishes between the interests of the parent and the interests of the non-controlling
owners. SFAS 160 is effective for fiscal years beginning after December 15, 2008. SFAS 160 will be adopted by the
company on January 1, 2009. The company does not believe that at the time of adoption SFAS 160 will have a
material impact on its Consolidated Financial Statements.
In March 2008, the FASB issued SFAS No. 161, “Disclosures about Derivative Instruments and Hedging Activities,
an amendment of FASB Statement No. 133” (SFAS 161). Effective for fiscal years and interim periods beginning
after November 15, 2008, the new standard requires enhanced disclosures about derivative and hedging activities
that are intended to better convey the purpose of derivative use and the risks managed. SFAS 161 will not affect the
company’s financial position or results of operations. The new standard solely affects the disclosure of information.
In December 2008, FASB issued FASB Staff Position (FSP) FAS 132(R)-1, “Employers’ Disclosures about
Postretirement Benefit Plan Assets,” which is effective for fiscal years ending after December 15, 2009. The
new standard expands disclosures for assets held by employer pension and other postretirement benefit plans. FSP
FAS 132(R)-1 will not affect the company’s financial position or results of operations. The new standard solely affects
the disclosure of information.
2. IMPLEMENTATION OF FASB STATEMENT OF FINANCIAL ACCOUNTING STANDARDS
NO. 157 “FAIR VALUE MEASUREMENTS” (SFAS 157)
Effective January 1, 2008, the company prospectively implemented the provisions of SFAS 157 for financial assets
and financial liabilities reported or disclosed at fair value. As permitted by FASB Staff Position No. FAS 157-2, the
company elected to defer implementation of the provisions of SFAS 157 for non-financial assets and non-financial
liabilities until January 1, 2009, except for non-financial items that are recognized or disclosed at fair value in the
financial statements on a recurring basis (at least annually).
The company uses the following valuation techniques to measure fair value for its financial assets and financial
liabilities:
Level 1 – Quoted market prices in active markets for identical assets or liabilities
Level 2 – Significant other observable inputs (e.g. quoted prices for similar items in active markets, quoted
prices for identical or similar items in markets that are not active, inputs other than quoted prices
that are observable such as interest rate and yield curves, and market-corroborated inputs)
F-12
E. I. du Pont de Nemours and Company
Notes to the Consolidated Financial Statements (continued)
(Dollars in millions, except per share)