Plantronics 2009 Annual Report Download - page 80

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3. RECENT ACCOUNTING PRONOUNCEMENTS
In February 2008, the Financial Accounting Standards Board (“FASB”) issued FASB issued Staff Position (“FSP”) FAS No. 157-2,
“Effective Date of FASB Statement No. 157”, (“FSP FAS No. 157-2") which permitted the Company to defer the effective date of
SFAS No. 157, “Fair Value Measurements” (“SFAS No. 157”), until its first quarter of fiscal 2010 for all non-financial assets and
non-financial liabilities, except for items that are recognized or disclosed at fair value in the financial statements on a recurring basis
(at least annually). SFAS No. 157 does not require any new fair value measurements but rather eliminates inconsistencies in guidance
found in various prior accounting pronouncements. The Company believes that the adoption of FSP FAS No. 157-2 for non-financial
assets and liabilities will not have an impact on its consolidated financial statements.
In April 2009, the FASB issued three FSPs related to fair value measurements, disclosures and other-than-temporary impairments.
FSP FAS No. 157-4, “Determining Fair Value When the Volume and Level of Activity for the Asset or Liability Have Significantly
Decreased and Identifying Transactions That Are Not Orderly” (“FSP FAS No. 157-4”), provides additional guidance for estimating
fair value in accordance with SFAS No. 157 when the volume and level of activity for an asset or liability have significantly
decreased. FSP FAS No. 157-4 also includes guidance on identifying circumstances that indicate a transaction is not orderly. FSP
FAS No. 115-2 and FSP FAS No. 124-2, “Recognition and Presentation of Other-Than-Temporary Impairments”, amends the other-
than-temporary impairment guidance in U.S. GAAP to make the guidance more operational and to improve the presentation of other-
than-temporary impairments in the financial statements. Finally, FSP FAS No. 107-1 and APB No. 28-1, “Interim Disclosures About
Fair Value of Financial Instruments”, amends SFAS No. 107, “Disclosures about Fair Value of Financial Instruments”, to require
disclosures about fair value of financial instruments in interim financial statements as well as in annual financial statements and also
amends APB Opinion No. 28, “Interim Financial Reporting”, to require those disclosures in all interim financial statements. The three
FSPs are effective for periods ending after June 15, 2009. Early adoption is permitted for periods ending after March 15, 2009,
however, the Company elected to adopt the FSPs during the first quarter of 2010. The Company is evaluating the impact, if any, the
FSPs will have on its consolidated financial statements.
In December 2007, the FASB issued SFAS No. 141 (revised 2007), “Business Combinations” ("SFAS No. 141(R)"), which replaces
“SFAS No. 141”, “Business Combinations”. SFAS No. 141(R) retains the purchase method of accounting for acquisitions, but
requires a number of changes, including changes in the way assets and liabilities are recognized and measured in purchase accounting.
It also changes the recognition of assets acquired and liabilities assumed arising from contingencies, requires the capitalization of in-
process research and development at fair value, and requires the expensing of acquisition-related costs as incurred. SFAS No. 141(R)
is effective for the Company beginning April 1, 2009 and will apply prospectively to any business combinations completed on or after
that date, except that resolution of certain tax contingencies and adjustments to valuation allowances related to business combinations,
which previously were adjusted to goodwill, will be recorded as income tax expense for all such adjustments after April 1, 2009,
regardless of the date of the original business combination.
In April 2009, the FASB issued FSP FAS No. 141R-1, “Accounting for Assets and Liabilities Assumed in a Business Combination
That Arise From Contingencies”, (“FSP FAS No. 141R-1”). FSP FAS No. 141R-1 amends and clarifies SFAS No. 141(R) to address
application issues regarding initial recognition and measurement, subsequent measurement and accounting and disclosure of assets
and liabilities arising from contingencies in a business combination. FSP FAS No. 141R-1 is effective for assets or liabilities arising
from contingencies in business combinations for which the acquisition date is on or after the beginning of the first annual reporting
period beginning on or after December 15, 2008. The Company believes FSP FAS No. 141R-1 may have a material impact on the
Company’s future consolidated financial statements depending on the size and nature of any future business combinations that the
Company may enter into.
In April 2008, the FASB issued FSP FAS No. 142-3, “Determination of the Useful Life of Intangible Assets” (“FSP FAS No. 142-3).
FSP FAS No.142-3 amends the factors an entity should consider in developing renewal or extension assumptions used in determining
the useful life of recognized intangible assets under FASB Statement No. 142, “Goodwill and Other Intangible Assets”. FSP FAS No.
142-3 applies prospectively to intangible assets that are acquired individually or with a group of other assets in business combinations
and asset acquisitions. FSP FAS No. 142-3 is effective for financial statements issued for the Company’s fiscal year beginning April
1, 2009. Early adoption is prohibited. The Company is evaluating the impact, if any, that FSP FAS No. 142-3 will have on its
consolidated financial statements.