THQ 2009 Annual Report Download - page 75

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fiscal 2010 and is to be applied retrospectively to all periods presented for collaborative arrangements
existing as of the date of adoption. 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 June 2008, the FASB ratified the EITF consensus on EITF Issue No. 07-5, ‘‘Determining Whether an
Instrument (or Embedded Feature) is Indexed to an Entity’s Own Stock’’ (‘‘EITF 07-5’’) that discusses the
determination of whether an instrument is indexed to an entity’s own stock. The guidance of this issue shall
be applied to outstanding instruments as of the beginning of the fiscal year in which this issue is initially
applied. EITF 07-5 is effective for financial statements issued for fiscal years beginning after December 15,
2008 and interim periods within those fiscal years, which is our fiscal 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 December 2008, the FASB issued FSP SFAS 140-4 and FIN 46 (R)-8, ‘‘Disclosures by Public Entities
(Enterprises) about Transfers of Financial Assets and Interests in Variable Interest Entities’’ (‘‘FSP
SFAS 140-4 and FIN 46 (R)-8’’). This disclosure-only FSP is intended to provide greater transparency to
financial statement users about a transferor’s continuing involvement with transferred financial assets and
an enterprise’s involvement with variable interest entities and qualifying special purpose entities. FSP
SFAS 140-4 and FIN 46 (R)-8 is effective for reporting periods (annual or interim) ending after
December 15, 2008. We adopted this statement for our quarter ended December 31, 2008, and the
adoption did not have a material impact on our results of operations, financial position or cash flows.
FSP FAS 107-1 and APB 28-1, ‘‘Interim Disclosures about Fair Value of Financial Instruments,’’ (‘‘FSP
FAS 107-1 and APB 28-1’’) requires companies to disclose the fair value of financial instruments within
interim financial statements, adding to the current requirement to provide those disclosures annually. FSP
FAS 107-1 and APB 28-1 is effective for interim and annual periods ending after June 15, 2009, but entities
may early adopt the FSP for the interim and annual periods ending after March 15, 2009. The adoption is
not expected to have a material impact on our results of operations, financial position or cash flows.
FSP FAS 115-2 and FAS 124-2, ‘‘Recognition and Presentation of Other-Than-Temporary Impairments,’’
(‘‘FSP FAS 115-2 and FAS 124-2’’) modifies the requirements for recognizing other-than-temporary-
impairment on debt securities and significantly changes the impairment model for such securities. Under
FSP FAS 115-2 and 124-2, a security is considered to be other-than-temporarily impaired if the present
value of cash flows expected to be collected are less than the security’s amortized cost basis (the difference
being defined as the credit loss) or if the fair value of the security is less than the security’s amortized cost
basis and the investor intends, or more-likely-than-not will be required, to sell the security before recovery
of the security’s amortized cost basis. If an other-than-temporary impairment exists, the charge to earnings
is limited to the amount of credit loss if the investor does not intend to sell the security, and it is
more-likely-than-not that it will not be required to sell the security, before recovery of the security’s
amortized cost basis. Any remaining difference between fair value and amortized cost is recognized in
other comprehensive income, net of applicable taxes. Otherwise, the entire difference between fair value
and amortized cost is charged to earnings. The FSP also modifies the presentation of
other-than-temporary impairment losses and increases related disclosure requirements. FSP FAS 115-2
and FAS 124-2 is effective for interim and annual periods ending after June 15, 2009, but entities may early
adopt the FSP for the interim and annual periods ending after March 15, 2009. The adoption is not
expected to have a material impact on our results of operations, financial position or cash flows.
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