THQ 2005 Annual Report Download - page 46

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23
evaluating the requirements of SFAS No. 123R and believe the adoption of SFAS No. 123R may have a
material impact on our consolidated results of operations and earnings per share. We have not yet
determined the method of adoption or the effect of adopting SFAS No. 123R, and we have not determined
whether the adoption will result in amounts that are similar to the current pro forma disclosures under
SFAS No. 123.
FASB Staff Position (“FSP”) No. 109-2, “Accounting and Disclosure Guidance for the Foreign Earnings
Repatriation Provision within the American Jobs Creation Act of 2004” (“FSP 109-2”), provides guidance
under FASB Statement No. 109, “ Accounting for Income Taxes,” with respect to recording the potential
impact of the repatriation provisions of the American Jobs Creation Act of 2004 (the “Jobs Act”) on
enterprises’ income tax expense and deferred tax liability. The Jobs Act was enacted on October 22, 2004.
FSP 109-2 states that an enterprise is allowed time beyond the financial reporting period of enactment to
evaluate the effect of the Jobs Act on its plan for reinvestment or repatriation of foreign earnings for
purposes of applying FASB Statement No. 109. We have not yet completed evaluating the impact of the
repatriation provisions. Accordingly, as provided for in FSP 109-2, we have not adjusted our tax expense or
deferred tax liability to reflect the repatriation provisions of the Jobs Act.