Travelzoo 2002 Annual Report Download - page 38

Download and view the complete annual report

Please find page 38 of the 2002 Travelzoo annual report below. You can navigate through the pages in the report by either clicking on the pages listed below, or by using the keyword search tool below to find specific information within the annual report.

Page out of 61

  • 1
  • 2
  • 3
  • 4
  • 5
  • 6
  • 7
  • 8
  • 9
  • 10
  • 11
  • 12
  • 13
  • 14
  • 15
  • 16
  • 17
  • 18
  • 19
  • 20
  • 21
  • 22
  • 23
  • 24
  • 25
  • 26
  • 27
  • 28
  • 29
  • 30
  • 31
  • 32
  • 33
  • 34
  • 35
  • 36
  • 37
  • 38
  • 39
  • 40
  • 41
  • 42
  • 43
  • 44
  • 45
  • 46
  • 47
  • 48
  • 49
  • 50
  • 51
  • 52
  • 53
  • 54
  • 55
  • 56
  • 57
  • 58
  • 59
  • 60
  • 61

issuance of the guarantee. The disclosure requirements eÅective for the year ending December 31, 2002,
expand the disclosures required by a guarantor about its obligation under a guarantee. The adoption of the
disclosure requirements of this statement did not impact our Ñnancial position, results of operations or cash
Öows.
In December 2002, the FASB issued Statement No. 148, Accounting for Stock-Based Compensation.
This statement provides alternative methods of transition for a voluntary change to the fair value based
method of accounting for stock-based employee compensation. In addition, this statement amends the
disclosure requirements of Statement 123 to require prominent disclosures in both annual and interim
Ñnancial statements about the method of accounting for stock-based employee compensation and the eÅect of
the method used on reported results. We have adopted the new disclosure requirements of this statement.
In January 2003, the FASB issued Interpretation No. 46, Consolidation of Variable Interest Entities
(""FIN 46''). The interpretation provides guidance for determining when a primary beneÑciary should
consolidate a variable interest entity or equivalent structure that functions to support the activities of the
primary beneÑciary. The interpretation is eÅective as of the beginning of Company's third quarter of 2003 for
variable interest entities created before February 1, 2003. The adoption of this statement is not expected to
impact our Ñnancial position, results of operations or cash Öows.
Item 7A. Quantitative and Qualitative Disclosures About Market Risk
Our accounts receivable are subject, in normal course of business, to collection risks. We regularly assess
these risks and have established policies and business practices to minimize the adverse eÅects of collection
risks. As a result, we do not anticipate any material losses in this area.
22