Seagate 2004 Annual Report Download - page 42

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Table of Contents
public companies to adopt its requirements using various methods, including the “modified prospective application method” and the “modified
retrospective application method”. We plan to adopt SFAS 123-R using the modified prospective application method. We expect that the
adoption of SFAS 123-R will have a material impact on our results of operations subsequent to adoption.
In June 2005, the FASB issued SFAS No. 154, “Accounting Changes and Error Corrections” (“SFAS 154”). SFAS 154 replaces APBO
No. 20 (
“APBO 20”) and SFAS No. 3, “Reporting Accounting Changes in Interim Financial Statements”, and applies to all voluntary changes
in accounting principle, and changes the requirements for accounting for and reporting of a change in accounting principle. APBO 20
previously required that most voluntary changes in accounting principle be recognized by including in net income of the period of change a
cumulative effect of changing to the new accounting principle whereas SFAS 154 requires retrospective application to prior periods’ financial
statements of a voluntary change in accounting principle, unless it is impracticable. SFAS 154 enhances the consistency of financial
information between periods. SFAS 154 will be effective beginning with our first quarter of fiscal year 2006. We not expect that the adoption
of SFAS 154 will have a material impact on our results of operations or financial position.
39