THQ 2009 Annual Report Download - page 40

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Section 411, ‘‘The Meaning of Present Fairly in Conformity with Generally Accepted Accounting
Principles.’’ We do not expect the adoption of this statement to have a material impact on our results of
operations, financial position or cash flows.
In December 2007, the FASB issued SFAS No. 141(R), ‘‘Business Combinations’’ (‘‘FAS 141R’’).
FAS 141R retains the fundamental requirements in SFAS No. 141 that the acquisition method of
accounting (which SFAS No. 141 called the purchase method) be used for all business combinations and
for an acquirer to be identified for each business combination. FAS 141R defines the acquirer as the entity
that obtains control of one or more businesses in the business combination and establishes the acquisition
date as the date that the acquirer achieves control. FAS 141R is effective for business combination
transactions for which the acquisition date is on or after the beginning of the first annual reporting period
beginning on or after December 15, 2008, which will be our fiscal year 2010. We adopted this statement on
April 1, 2009, and the adoption is expected to have a significant effect on our financial statements for
material acquisitions consummated subsequent to April 1, 2009.
In April 2008, the FASB issued FSP FAS 142-3, ‘‘Determination of the Useful Life of Intangible Assets’’
(‘‘FSP 142-3’’). FSP 142-3 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 No. 142,
‘‘Goodwill and Other Intangible Assets’’ (‘‘FAS 142’’). This change is intended to improve the consistency
between the useful life of a recognized intangible asset under FAS 142 and the period of expected cash
flows used to measure the fair value of the asset under FAS 141R and other GAAP. FSP 142-3 is effective
for financial statements issued for fiscal years beginning after December 15, 2008, and interim periods
within those fiscal years, which will be our fiscal year 2010. The requirement for determining useful lives
must be applied prospectively to intangible assets acquired after the effective date and the disclosure
requirements must be applied prospectively to all intangible assets recognized as of, and subsequent to, the
effective date. We adopted this statement on April 1, 2009, and the adoption did not have a material
impact on our results of operations, financial position or cash flows.
In December 2007, the FASB issued SFAS No. 160, ‘‘Noncontrolling Interests in Consolidated Financial
Statements’’ (‘‘FAS 160’’). This Statement amends Accounting Research Bulletin (‘‘ARB’’) No. 51,
‘‘Consolidated Financial Statements’’ to establish accounting and reporting standards for the
non-controlling interest in a subsidiary and for the deconsolidation of a subsidiary. It clarifies that a
non-controlling interest in a subsidiary is an ownership interest in the consolidated entity that should be
reported as equity in the consolidated financial statements. FAS 160 is effective for fiscal years and interim
periods within those fiscal years, beginning on or after December 15, 2008, which will be our fiscal year
2010. We adopted this statement on April 1, 2009, and the adoption did not have a material impact on our
results of operations, financial position or cash flows.
In March 2008, the FASB issued SFAS No. 161, ‘‘Disclosures about Derivative Instruments and Hedging
Activities—an amendment of FASB Statement No. 133’’ (‘‘FAS 161’’). This Statement changes the
disclosure requirements for derivative instruments and hedging activities. Under FAS 161, entities are
required to provide enhanced disclosures about (a) how and why an entity uses derivative instruments,
(b) how derivative instruments and related hedged items are accounted for under Statement 133 and its
related interpretations, and (c) how derivative instruments and related hedged items affect an entity’s
financial position, financial performance, and cash flows. FAS 161 is effective for financial statements
issued for fiscal years and interim periods beginning after November 15, 2008, which was our fourth
quarter of fiscal year 2009. We adopted this statement on January 1, 2009, and the adoption did not have a
material impact on our results of operations, financial position or cash flows.
In June 2007, the FASB ratified the Emerging Issues Task Force (‘‘EITF’’) consensus conclusion on EITF
No. 07-3, ‘‘Accounting for Advance Payments for Goods or Services to be Used in Future Research and
Development’’ (‘‘EITF 07-3’’). EITF 07-3 addresses the diversity which exists with respect to the
accounting for the non-refundable portion of a payment made by a research and development entity for
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