Jamba Juice 2009 Annual Report Download - page 84

Table of Contents
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Recent Accounting Pronouncements
In September 2006, the FASB issued FASB Statement No. 157, Fair Value Measurements. FASB Statement No. 157 is effective for fiscal years
beginning after November 15, 2007; however, FSP FAS 157-2, Effective Date of FASB Statement No. 157, delayed the effective date of FASB Statement
No. 157 for most nonfinancial assets and nonfinancial liabilities until fiscal years beginning after November 15, 2008. The implementation of FASB
Statement No. 157 for financial assets and financial liabilities, effective January 2, 2008, did not have a material impact on the Company’s consolidated
financial statements. The Company will adopt FASB Statement No. 157 for nonfinancial assets and nonfinancial liabilities beginning in the first quarter of
fiscal 2009 and does not expect adoption to have a material impact on its consolidated financial statements.
In December 2007, the FASB issued FASB Statement No. 160, Noncontrolling Interests in Consolidated Financial Statements , an amendment of
ARB No. 51. FASB Statement No. 160 changes the accounting and reporting for minority interests, which will be recharacterized as noncontrolling interests
and classified as a component of equity. This new consolidation method significantly changes the accounting for transactions with minority interest holders.
FASB Statement No. 160 is effective for fiscal years beginning after December 15, 2008 with early application prohibited. As a result of adopting FASB
Statement No. 160, beginning in fiscal 2009 the Company will no longer record an intangible asset when the purchase price of a partnership interest exceeds
the book value at the time of buyout. Instead, any excess will be recorded as a reduction to equity. Additionally, after the adoption of FASB Statement No. 160,
operating losses will be allocated to noncontrolling interests even when such allocation results in a deficit balance (i.e., book value can go negative). The
Company will present noncontrolling interests (currently shown as minority interest) as a component of equity on the consolidated balance sheets and minority
interest expense will no longer be separately reported as a reduction to net income on the consolidated income statements. The Company does not anticipate the
adoption of FASB Statement No. 160 to have any other material impact on its consolidated financial statements.
In December 2007, the FASB issued FASB Statement No. 141 (revised 2007), Business Combinations. FASB Statement No. 141R establishes
principles and requirements for how an acquiror in a business combination recognizes and measures in its financial statements the identifiable assets
acquired, the liabilities assumed and any noncontrolling interest in the acquiree at the acquisition date. FASB Statement No. 141R significantly changes the
accounting for business combinations in a number of areas including the treatment of contingent consideration, preacquisition contingencies, transaction
costs, in-process research and development and restructuring costs. In addition, under FASB Statement No. 141R, changes in an acquired entity’s deferred tax
assets and uncertain tax positions after the measurement period will impact income tax expense. FASB Statement No. 141R provides guidance regarding what
information to disclose to enable users of the financial statements to evaluate the nature and financial effects of the business combination. FASB Statement
No. 141R is effective for fiscal years beginning after December 15, 2008 with early application prohibited. The Company will adopt FASB Statement
No. 141R beginning in the first quarter of fiscal 2009 and will change its accounting treatment for business combinations on a prospective basis.
In March 2008, the FASB issued FASB Statement No. 161, Disclosures about Derivative Instruments and Hedging Activities ,. FASB Statement
No. 161 requires companies to provide enhanced disclosures about derivative instruments and hedging activities to enable investors to better understand the
effects of such instruments and activities on a company’s financial position, financial performance and cash flows. Under FASB Statement No. 161,
companies are required to disclose the fair values of derivative instruments and their gains and losses in a tabular format. FASB Statement No. 161 is
effective for fiscal years beginning after November 15, 2008, and the Company will adopt these provisions in the first quarter of fiscal 2009. The Company
does not anticipate that the adoption of FASB Statement No. 161 will have a material impact on its consolidated financial statements.
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