Papa Johns 2008 Annual Report Download - page 82

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75
2. Significant Accounting Policies (continued)
New Accounting Pronouncements
In February 2007, the FASB issued SFAS No. 159, The Fair Value Option for Financial Assets and
Financial Liabilities – Including an Amendment of SFAS No. 115. SFAS No. 159 is effective for fiscal
years beginning after November 15, 2008 or our first quarter of fiscal 2009. This statement provides
companies with the option to measure, at specified election dates, many financial instruments and certain
other items at fair value that are not currently measured at fair value. Companies electing to adopt SFAS
No. 159 will report unrealized gains and losses on items for which the fair value option has been elected
in earnings at each subsequent reporting date. The Company does not intend to elect the SFAS No. 159
fair value measurement option.
In December 2007, the FASB issued SFAS No. 141 - revised 2007 (SFAS No. 141R), Business
Combinations. SFAS No. 141R establishes principles and requirements for how an acquirer in a business
combination recognizes and measures in its financial statements the identifiable assets acquired, the
liabilities assumed, and any noncontrolling interest; recognizes and measures the goodwill acquired in
the business combination or a gain from a bargain purchase; and determines what information to disclose
to enable financial statement users to evaluate the nature and financial effects of the business
combination. SFAS No. 141R applies to business combinations for which the acquisition date is on or
after December 15, 2008 or our first quarter of fiscal 2009. Early adoption is prohibited. The adoption of
this statement is not expected to have a significant impact on Papa John’s consolidated financial
statements.
In December 2007, the FASB issued SFAS No. 160, Noncontrolling Interests in Consolidated Financial
Statements – an amendment to ARB No. 51. SFAS No. 160 requires all entities to report noncontrolling
(minority) interests in subsidiaries as equity in the consolidated financial statements, but separate from
the equity of the parent company. The statement further requires that consolidated net income be reported
at amounts attributable to the parent and the noncontrolling interest, rather than expensing the income
attributable to the minority interest holder. This statement also requires that companies provide sufficient
disclosures to clearly identify and distinguish between the interests of the parent company and the
interests of the noncontrolling owners, including a disclosure on the face of the consolidated statements
for income attributable to the noncontrolling interest holder. This statement is effective for fiscal years
beginning on or after December 15, 2008 or for our first quarter of 2009. Early adoption is prohibited.
The adoption of this statement is not expected to have a significant impact on Papa John’s 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 No. 161 enhances the required
disclosures regarding derivatives and hedging activities, including disclosures regarding how and why an
entity uses derivative instruments, how derivative instruments and related hedged items are accounted for
under SFAS No. 133, Accounting for Derivative Instruments and Hedging Activities, and how derivative
instruments and related hedged items affect an entity’s financial position, results of operations and cash
flows. SFAS No. 161 is effective for fiscal years beginning after November 15, 2008 or our first quarter
of fiscal 2009.