Ricoh 2009 Annual Report Download - page 45

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ANNUAL REPORT 2009
To Our Shareholders
and Customers
Fiscal 2009
Highlights
Progress of the
16th MTP
Creating New
Customer Value
RICOH
Milestones
Sustainable Environ-
mental Management
Corporate Social
Responsibility
Financial
Section
2007, and was adopted by Ricoh in fiscal year beginning April 1,
2008. The adoption of SFAS 157 did not have a material effect on
Ricoh’s consolidated financial position or results of operations.
In September 2006, the FASB issued SFAS 158. SFAS 158 requires
companies to recognize an asset or liability for the overfunded or
underfunded status of their benefit plans in their financial
statements and to recognize changes in that funded status in
comprehensive income (loss) in the year in which the changes
occur. SFAS 158 also requires the measurement date for plan
assets and liabilities to coincide with the sponsor’s year-end. The
standard provides two transition alternatives related to the change
in measurement date provisions. The recognition of an asset and
liability related to the funded status provision is effective for fiscal
years ending after December 15, 2006. Ricoh adopted the
recognition and disclosure provisions and the measurement date
provisions of SFAS 158 as of March 31,2007 and 2009,
respectively. The change in measurement date provisions is
effective for fiscal years ending after December 15, 2008. The
adoption of the measurement date provisions resulted in
adjustments to decrease retained earnings by ¥ 643 million, and
increase other comprehensive loss by ¥ 6 million as of April 1,
2008.
In March 2008, the FASB issued SFAS No.161, “Disclosures about
Derivative Instruments and Hedging Activities, an amendment of
FASB Statement No. 133”. SFAS 161 requires disclosures of how
and why an entity uses derivative instruments, how derivative
instruments and related hedged items are accounted for and how
derivative instruments and related hedged items affect an entity’s
financial position, financial performance, and cash flows. SFAS 161
is effective for fiscal years and interim periods beginning after
November 15, 2008, with early adoption permitted. Ricoh adopted
SFAS161 as of January 1, 2009.
(x) New Accounting Standards Not Yet Adopted
In December 2007, the FASB issued SFAS No.141 (revised 2007),
“Business Combinations ” (“SFAS 141R”). SFAS 141R establishes
principles and requirements for how an acquirer recognizes and
measures in its financial statements the identifiable assets acquired,
the liabilities assumed, any noncontrolling interest in the acquiree
and the goodwill acquired. SFAS 141R also establishes disclosure
requirements to enable the evaluation of the nature and financial
effects of the business combination. SFAS 141R is effective for fiscal
years beginning on or after December 15, 2008 and is required to be
adopted by Ricoh in the first quarter beginning April 1, 2009. Ricoh
will apply prospectively to all business combinations subsequent to
the effective date.
In December 2007, the FASB issued SFAS No.160, “Noncontrolling
Interests in Consolidated Financial Statements - an amendment of
ARB No. 51.” This Statement requires that the noncontrolling
interest in the equity of a subsidiary be accounted for and reported as
equity, provides revised guidance on the treatment of net income and
losses attributable to the noncontrolling interest and changes in
ownership interests in a subsidiary and the valuation of retained
noncontrolling equity investments when a subsidiary is
deconsolidated. SFAS 160 also requires additional disclosures that
identify and distinguish between the interests of the controlling and
noncontrolling owners. Pursuant to the transition provisions of SFAS
160, Ricoh will adopt SFAS 160 in fiscal year 2010 via retrospective
application of the presentation and disclosure requirements. Ricoh is
currently evaluating the effect the adoption of SFAS 160 will have on
its consolidated results of operations and financial condition.
In May 2009, the FASB issued SFAS No.165, “Subsequent Events.”
SFAS 165 is intended to establish general standards of accounting for
and disclosure of events that occur after the balance sheet date but
before financial statements are issued or are available to be issued. It
requires the disclosure of the date through which an entity has
evaluated subsequent events and the basis for that date -- that is,
whether that date represents the date the financial statements were
issued or were available to be issued. SFAS 165 is effective for fiscal
years beginning after June 15, 2009, and interim periods within those
fiscal years. SFAS 165 will be adopted by Ricoh in the second
quarter beginning July 1, 2009.
In June 2009, the FASB issued SFAS No.166, “Accounting for
Transfers of Financial Assets-an amendment of FASB Statement No.
140.” This statement eliminates the concept of a qualifying special-
purpose entity ("QSPE"), establishes conditions for reporting a
transfer of a portion of a financial asset as a sale, clarifies the
financial-asset derecognition criteria, revises how interests retained
by the transferor in a sale of financial assets initially are measured,
removes the guaranteed mortgage securitization recharacterization
provisions and requires additional disclosures. SFAS 166 is effective
for fiscal years beginning after November 15, 2009 and for
subsequent interim and annual reporting periods. SFAS 166 will be
adopted by Ricoh in the first quarter beginning April 1, 2010. Ricoh is
currently evaluating the effect that the adoption of SFAS 166 will have
on its consolidated results of operations and financial condition.
In June 2009, the FASB issued SFAS No.167, “Amendments to
FASB Interpretation No. 46(R). “ This statement requires reporting
entities to evaluate former QSPEs for consolidation, changes the
approach to determining a VIE’s primary beneficiary from a mainly
quantitative assessment to an exclusively qualitative assessment
designed to identify a controlling financial interest, and increases
the frequency of required reassessments to determine whether a
company is the primary beneficiary of a VIE. SFAS 167 is effective
for fiscal years beginning after November 15, 2009 and for
subsequent interim and annual reporting periods. Earlier application
is prohibited. SFAS 167 will be adopted by Ricoh in the first quarter
beginning April 1, 2010. Ricoh is currently evaluating the effect that
the adoption of SFAS 167 will have on its consolidated results of
operations and financial condition.
In April 2008, the FASB finalized FSP 142-3, “Determination of the
Useful Life of Intangible Assets”. The position amends the factors
that should be considered in developing renewal or extension
assumptions used to determine the useful life of a recognized
intangible asset under SFAS 142. The position applies to intangible
assets that are acquired individually or with a group of other assets
and both intangible assets acquired in business combinations and
asset acquisitions. FSP 142-3 is effective for fiscal years beginning
after December 15, 2008, and interim periods within those fiscal
years. FSP142-3 will be adopted by Ricoh in the first quarter
beginning April 1, 2009. Ricoh is currently evaluating the effect
that the adoption of FSP 142-3 will have on its consolidated results
of operations and financial condition.
In December 2008, the FASB issued FSP No. FAS 132(R)-1,
"Employer's Disclosures about Postretirement Benefit Plan Assets."
FSP FAS 132(R)-1 requires additional disclosures about assets held
in an employer's defined benefit pension or other postretirement
plan. FSP FAS 132(R)-1 is effective for fiscal years ending after
December 15, 2009 and will be adopted by Ricoh in the first quarter
beginning April 1, 2010. Ricoh will present the required disclosures