Tech Data 2013 Annual Report Download - page 53

Table of Contents
changes in the interpretation and enforcement of international laws (particularly related to items such as duty and taxation), and the impact of local
economic conditions and practices, which are all subject to change as events evolve and as additional information becomes available during the
administrative and litigation process.
Recently Adopted Accounting Standards
In September 2011, the Financial Accounting Standards Board (“FASB”) issued an accounting standard which simplifies how entities test goodwill
for impairment. The accounting standard permits an entity to first assess qualitative factors to determine whether it is more likely than not that the
fair value of a reporting unit is less than its carrying amount as a basis for determining whether it is necessary to perform the two-step goodwill
impairment test described below. The accounting standard was effective for the Company beginning February 1, 2012, with early adoption
permitted. The Company has adopted this standard as of February 1, 2012, which had no impact on its consolidated financial position, income,
comprehensive income or cash flows.
In May 2011, the FASB and International Accounting Standards Board (“IASB”) issued an accounting standard that amends the wording used to
describe many of the requirements in U.S. GAAP for measuring fair value and for disclosing information about fair value measurements. This
accounting standard does not extend the use of fair value accounting, but provides guidance on how it should be applied where its use is already
required or permitted by other standards within U.S. GAAP or International Financial Reporting Standards (“IFRS”). This accounting standard is
effective for the Company beginning with the quarter ended April 30, 2012. The Company adopted this standard for the quarter ended April 30,
2012, which had no impact on its consolidated financial position, income, comprehensive income or cash flows.
In January 2013, the FASB issued an accounting standard limiting the scope of the accounting standard issued in December 2011 related to
enhanced disclosures on offsetting (netting) of assets and liabilities in a company's financial statements. As a result of the scope limitation, the
Company has concluded that the accounting standard will have no impact on its financial statement disclosures.
Recently Issued Accounting Standards
In July 2012, the FASB issued a new accounting standard which allows an entity to first assess qualitative factors to determine whether it is
necessary to perform a quantitative impairment test for indefinite-lived intangible assets. The accounting standard states that an entity would not be
required to calculate the fair value of an indefinite-lived intangible asset unless the entity determines, based on a qualitative assessment, that the
indefinite-lived intangible asset is impaired. This standard was effective for the Company beginning February 1, 2013. As the Company currently
has no material indefinite-lived intangible assets, other than goodwill, this standard will have no impact on the Company's consolidated financial
position, income, comprehensive income and cash flows.
In February 2013, the FASB issued an accounting standard which requires an entity to provide additional information regarding the amounts
reclassified out of accumulated other comprehensive income by component, the income statement line item to which the reclassification was made
and if applicable, cross-referenced to related footnote disclosures. The accounting standard was effective for the Company beginning with the
quarter ending April 30, 2013. As the requirements of this standard are disclosure only, there will be no impact on the Company's consolidated
financial position, income, comprehensive income or cash flows.
In March 2013, the FASB issued an accounting standard which clarifies the accounting for the derecognition of certain subsidiaries or groups of
assets within a foreign entity or of an investment in a foreign entity. The guidance also requires the accounting for a business combination achieved
in stages involving a foreign entity to be treated as a single event. The accounting standard is effective for the Company beginning with the quarter
ending April 30, 2014 and is to be applied prospectively to derecognition events occurring after the effective date. Early adoption is also permitted.
If an entity elects to early adopt the accounting standard, it is to be adopted as of the beginning of the entity's fiscal year of adoption. The Company
will apply the provisions of this accounting standard to all transactions described above prospectively from the date of adoption.
In March 2013, the FASB also issued an accounting standard which requires an entity to measure obligations resulting from joint and several
liability arrangements for which the total amount of the obligation within the scope of the guidance is fixed at the reporting date as the sum of: i) the
amount the reporting entity agreed to pay on the basis of its arrangements among its co-obligors and ii) any additional amount the reporting entity
expects to pay on behalf of its co-obligors. The guidance also requires an entity to disclose the nature and amount of the obligation as well as other
information about those obligations. The accounting standard is effective for the Company beginning with the quarter ending April 30, 2014 and is
to be applied retrospectively for all periods presented. Early adoption is also permitted. The Company does not anticipate that the adoption of this
guidance will have a material impact on its consolidated financial position, income, comprehensive income or cash flows.
In July 2013, the FASB issued an accounting standard which requires presentation of certain unrecognized tax benefits as reductions to deferred tax
assets rather than as liabilities when a net operations loss carryforward, a similar tax loss, or a tax credit
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