Supercuts 2008 Annual Report Download - page 84

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued)
1. BUSINESS DESCRIPTION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued)
them to the cost of an acquisition; (4) including the fair value of contingent consideration at the date of an acquisition in the cost of an
acquisition; and (5) recording at the date of an acquisition the fair value of contingent liabilities that are more than likely than not to occur. SFAS
No. 141(R) also includes a substantial number of new disclosure requirements. SFAS No. 141(R) will be effective for the Company's fiscal year
2010 and must be applied prospectively to all new acquisitions closing on or after July 1, 2009. Early adoption is prohibited. SFAS No. 141(R) is
expected to have a material impact on how the Company will identify, negotiate and value future acquisitions and a material impact on how the
acquisition will affect the Company's Consolidated Financial Statements.
In March 2008, the FASB issued SFAS No. 161, Disclosures about Derivative Instruments and Hedging Activities (SFAS No. 161). SFAS
No. 161 requires enhanced disclosures about how and why an entity uses derivative instruments, how derivative instruments and related hedge
items are accounted for under SFAS No. 133, Accounting for Derivative Instruments and Hedging Activities , and its related interpretations, and
how derivative instruments and related hedged items affect an entity's financial position, financial performance, and cash flows. SFAS No. 161 is
effective for fiscal years and interim periods beginning after November 15, 2008 (i.e. the Company's third quarter of fiscal year 2009). The
Company intends to comply with the disclosure requirements upon adoption.
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