Toshiba 2009 Annual Report Download - page 80

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28
Notes to Consolidated Financial Statements
Toshiba Corporation and Subsidiaries
M arch 31, 2009
ASSET RETIREM ENT OBLIGATIONS
The Company records asset retirement obligations at fair value in the period incurred. The fair value of the liability is added
to the carrying amount of the associated asset. This additional carrying amount is then depreciated over the life of the asset.
The liability increases due to the passage of time based on the time value of money until the obligation is settled. Subsequent
to the initial recognition, the liability is adjusted for any revisions to the expected value of the retirement obligation, and for
accretion of the liability due to the passage of time.
RECENT PRONOUNCEM ENTS
In December 2007, the FASB issued SFAS No. 141 (revised 2007), Business Combinations (“SFAS 141R”). SFAS 141R establishes
principles and requirements for how an acquirer recognizes and measures in its financial statements the identifiable assets acquired,
the liabilities assumed, any noncontrolling interest in the acquiree and the goodwill acquired in the business combination or a gain
from a bargain purchase. SFAS 141R also requires to disclose to enable users of the financial statements to evaluate the nature and
financial effects of the business combination. SFAS 141R is effective for fiscal years beginning on or after December 15, 2008, and
the Company will adopt SFAS 141R effective April 1, 2009. The Company is currently evaluating the impact of adoption of SFAS
141R on the Company’s financial position and results of operations.
In December 2007, the FASB issued SFAS No. 160, Noncontrolling Interests in Consolidated Financial Statements, an amendment of
ARB No. 51 (“SFAS 160”). SFAS 160 establishes accounting and reporting standards for ownership interests in subsidiaries held by
parties other than the parent, the amount of consolidated net income attributable to the parent and to the noncontrolling interest,
changes in a parent’s ownership interest while the parent retains its controlling financial interest in its subsidiary, and to measure at
fair value of retained noncontrolling equity investments when a subsidiary is deconsolidated. SFAS 160 also requires to disclose that
clearly identify and distinguish between the interests of the parent and the interests of the noncontrolling owners. SFAS 160 is effec-
tive for fiscal years beginning on or after December 15, 2008, and the Company will adopt SFAS 160 effective April 1, 2009. The
Company is currently evaluating the impact of adoption of SFAS 160 on the Company’s financial position and results of operations.
In December 2008, the FASB issued Staff Position No. FAS132 (revised 2003)-1, Employers’ Disclosures about Postretirement Benefit
Plan Assets (“FSP FAS132R-1”). FSP FAS132R-1 provides companies with guidance on an disclosures about plan assets of a defined
benefit pension or other postretirement plan including (a) how investment allocation decisions are made, including the factors that
are pertinent to an understanding of investment policies and strategies, (b) the major categories of plan assets, (c) the inputs and valu-
ation techniques used to measure the fair value of plan assets, (d) the effect of fair value measurements using significant unobservable
inputs on changes in plan assets for the period and (e) significant concentrations of risk within plan assets. FSP FAS132R-1 shall be
effective for fiscal years ending after December 15, 2009, and the Company will adopt FSP FAS132R-1 effective April 1, 2009. The
Company is currently evaluating the impact of adoption of FSP FAS132R-1 on its footnote disclosures related to its combined
results of operations and financial condition of the Company.
In April 2009, the FASB issued Staff Position No. FAS141R-1, Accounting for Assets Acquired and Liabilities Assumed in a Business
Combination T hat Arise from Contingencies (“FSP FAS141R-1”). FSP FAS141R-1 amends and clarifies SFAS141R to address appli-
cation issues raised on initial recognition and measurement, subsequent measurement and accounting as well as disclosure of assets
and liabilities arising from contingencies in a business combination. FSP FAS141R-1 shall be effective for assets or liabilities arising
from contingencies in business combinations for which the acquisition date is on or after the beginning of the first annual reporting
period beginning on or after December 15, 2008, and the Company will adopt FSP FAS141R-1 effective April 1, 2009. The
Company is currently evaluating the impact of adoption of FSP FAS141R-1 on the Company’s financial position and results of
operations.
In April 2009, the FASB issued Staff Position No. FAS157-4, Determining Fair Value W hen the Volume and Level of Activity for the
Asset or Liability Have Significantly Decreased and Identifying T ransactions T hat Are Not Orderly (“FSP FAS157-4”). FSP FAS157-4 pro-
vides additional guidance for estimating fair value when the volume and level of activity for the asset or liability have significantly
decreased including guidance on identifying circumstances that indicate a transaction is not orderly. FSP FAS157-4 shall be effective
for interim and annual reporting periods ending after June 15, 2009, and the Company will adopt FSP FAS157-4 effective April 1,
2009. The Company is currently evaluating the impact of adoption of FSP FAS157-4 on the Company’s financial position and
results of operations.
RECLASSIFICATIONS
Certain reclassifications to the prior year’s consolidated financial statements and related footnote amounts have been made to
conform to the presentation for the current year.
3. U.S. DOLLAR AMOUNTS
U.S. dollar amounts are included solely for convenience of readers. These translations should not be construed as a representation
that the yen could be converted into U.S. dollars at this rate or any other rates. The amounts shown in U.S. dollars are not
intended to be computed in accordance with generally accepted accounting principles in the United States for the translation of
foreign currency amounts. The rate of ¥98=U.S.$1, the approximate current rate of exchange at March 31, 2009, has been used
throughout for the purpose of presentation of the U.S. dollar amounts in the accompanying consolidated financial statements.