Goldman Sachs 2009 Annual Report Download - page 103

Goldman Sachs 2009 Annual Report
101
Notes to Consolidated Financial Statements
remainder recognized in other comprehensive income, if the
holder does not intend to sell the security and it is more likely
than not that the holder will not be required to sell the security
prior to recovery. Previously, the entire other-than-temporary
impairment was recognized in current period earnings.
The  rm adopted these amended accounting principles in
the second quarter of  scal 2009. Adoption did not have a
material effect on the  rm’s  nancial condition, results of
operations or cash  ows.
Interim Disclosures about Fair Value of Financial Instruments
(ASC 825). In April2009, the FASB issued amended principles
related to interim disclosures about fair value of  nancial
instruments. The  rm adopted these amended principles in
the second quarter of  scal 2009. Adoption did not affect the
 rm’s  nancial condition, results of operations or cash  ows.
Transfers of Financial Assets and Interests in Variable Interest
Entities (ASC 860 and 810). In June 2009, the FASB issued
amended accounting principles which change the accounting
for securitizations and VIEs. These principles were codi ed as
Accounting Standards Update (ASU) No. 2009-16, “Transfers
and Servicing (Topic 860) — Accounting for Transfers of
Financial Assets” and ASU No. 2009-17, “Consolidations
(Topic 810) — Improvements to Financial Reporting by
Enterprises Involved with Variable Interest Entities” in
December2009. ASU No. 2009-16 eliminates the concept of
a QSPE, changes the requirements for derecognizing  nancial
assets, and requires additional disclosures about transfers
of  nancial assets, including securitization transactions and
continuing involvement with transferred  nancial assets.
ASU No. 2009-17 changes the determination of when a
VIE should be consolidated. Under ASU No. 2009-17, the
determination of whether to consolidate a VIE is based on the
power to direct the activities of the VIE that most signi cantly
impact the VIE’s economic performance together with either
the obligation to absorb losses or the right to receive bene ts
that could be signi cant to the VIE, as well as the VIE’s
purpose and design. ASU Nos. 2009-16 and 2009-17 are
effective for  scal years beginning after November15, 2009.
In February 2010, the FASB  nalized a standard which defers
the requirements of ASU No. 2009-17 for certain interests
in investment funds and certain similar entities. Adoption of
ASU Nos. 2009-16 and 2009-17 on January 1, 2010 did not
have a material effect on the  rm’s  nancial condition, results
of operations or cash  ows. However, continued application of
these principles requires the  rm to make judgments that are
subject to change based on new facts and circumstances, and
evolving interpretations and practices.
Fair Value Measurements and Disclosures — Measuring
Liabilities at Fair Value (ASC820). In August 2009, the FASB
issued ASU No. 2009-05, “Fair Value Measurements and
Disclosures (Topic 820) — Measuring Liabilities at Fair
Value.” ASU No. 2009-05 provides guidance in measuring
liabilities when a quoted price in an active market for an
identical liability is not available and clari es that a reporting
entity should not make an adjustment to fair value for a
restriction that prevents the transfer of the liability. The  rm
adopted ASU No. 2009-05 in the fourth quarter of  scal
2009. Since the  rm’s fair value methodologies were consistent
with ASU No. 2009-05, adoption did not affect the  rm’s
 nancial condition, results of operations or cash  ows.
Investments in Certain Entities That Calculate Net Asset Value
per Share (or Its Equivalent) (ASC820). In September 2009, the
FASB issued ASU No. 2009-12, “Fair Value Measurements
and Disclosures (Topic 820) — Investments in Certain
Entities That Calculate Net Asset Value per Share (or Its
Equivalent).” ASU No. 2009-12 provides guidance about
using netasset value to measure the fair value of interests in
certain investment funds and requires additional disclosures
about interests in investment funds. The  rm adopted ASU
No. 2009-12 in the fourth quarter of  scal 2009. Since the
 rm’s fair value methodologies were consistent with ASU
No.2009-12, adoption did not affect the  rm’s  nancial
condition, results of operations or cash  ows.
Improving Disclosures about Fair Value Measurements
(ASC820). In January 2010, the FASB issued ASU
No.2010-06, “Fair Value Measurements and Disclosures
(Topic 820) — Improving Disclosures about Fair Value
Measurements.” ASU No. 2010-06 provides amended
disclosure requirements related to fair value measurements.
ASU No. 2010-06 is effective for  nancial statements issued
for reporting periods beginning after December 15, 2009 for
certain disclosures and for reporting periods beginning after
December 15, 2010 for other disclosures. Since these amended
principles require only additional disclosures concerning
fair value measurements, adoption will not affect the  rm’s
 nancial condition, results of operations or cash  ows.