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McKESSON CORPORATION
FINANCIAL NOTES (Continued)
69
Subsequent to the issuance of the Company’ s 2007 Annual Report on Form 10-K, it was determined that we
incorrectly presented the adjustment to initially apply SFAS No. 158 of $63 million, net, as a reduction of 2007
comprehensive income within our Consolidated Statements of Stockholders’ Equity for the year ended March 31,
2007. This error was corrected in 2008, increasing previously reported comprehensive income from $889 million to
$952 million for the year ended March 31, 2007.
Newly Issued Accounting Pronouncements: In September 2006, the Financial Accounting Standards Board
(“FASB”) issued SFAS No. 157, “Fair Value Measurements,” which defines fair value, establishes a framework for
measuring fair value and expands disclosures about fair value measurements. This standard applies under other
accounting pronouncements that require or permit fair value measurements, but does not require any new fair value
measurements. In February 2008, the FASB issued FASB Staff Position (FSP) Financial Accounting Standard
(FAS) 157-1, “Application of FASB Statement No. 157 to FASB Statement No. 13 and Its Related Interpretive
Accounting Pronouncements That Address Leasing Transactions,” and FSP FAS 157-2, “Effective Date of FASB
Statement No. 157.” FSP FAS 157-1 removes leasing from the scope of SFAS No. 157. FSP FAS 157-2 delays the
effective date of SFAS No. 157 from 2009 to 2010 for all nonfinancial assets and nonfinancial liabilities, except
those that are recognized or disclosed at fair value in the financial statements on a recurring basis (at least annually).
We are currently assessing the impact of SFAS No. 157.
In February 2007, the FASB issued SFAS No. 159, “The Fair Value Option for Financial Assets and Financial
Liabilities, including an amendment of FASB Statement No. 115.” SFAS No. 159 permits us to elect fair value as
the initial and subsequent measurement attribute for certain financial assets and liabilities that are not otherwise
required to be measured at fair value, on an instrument-by-instrument basis. If we elect the fair value option, we
would be required to recognize changes in fair value in our earnings. This standard also establishes presentation and
disclosure requirements designed to improve comparisons between entities that choose different measurement
attributes for similar types of assets and liabilities. SFAS No. 159 is effective for us in 2009 although early adoption
is permitted. We are currently assessing the impact of SFAS No. 159 on our consolidated financial statements.
In December 2007, the FASB issued SFAS No. 141(R), “Business Combinations.” SFAS No. 141(R) amends
SFAS No. 141 and provides revised guidance for recognizing and measuring identifiable assets and goodwill
acquired, liabilities assumed and any noncontrolling interest in the acquiree. It also provides disclosure
requirements to enable users of the financial statements to evaluate the nature and financial effects of the business
combination. We are currently evaluating the impact on our consolidated financial statements of this standard,
which will become effective for us on April 1, 2009.
In December 2007, the FASB issued SFAS No. 160, “Noncontrolling Interests in Consolidated Financial
Statements — an amendment of ARB No. 51.” This statement requires reporting entities to present noncontrolling
(minority) interests as equity (as opposed to as a liability or mezzanine equity) and provides guidance on the
accounting for transactions between an entity and noncontrolling interests. We are currently evaluating the impact
on our consolidated financial statements of this standard, which will become effective for us on April 1, 2009.
In March 2008, the FASB issued SFAS No. 161, “Disclosures about Derivative Instruments and Hedging
Activities — an amendment of FASB Statement No. 133.” This statement requires enhanced disclosures about (a)
how and why an entity uses derivative instruments, (b) how derivative instruments and related hedged items are
accounted for under SFAS No. 133, “Accounting for Derivative Instruments and Hedging Activities” and its related
interpretations, and (c) how derivative instruments and related hedged items affect an entity’ s financial position,
financial performance and cash flows. SFAS No. 161 will become effective for us in 2009. As this standard
impacts disclosures only, the adoption of this standard will not have material impact on our consolidated financial
statements.