U-Haul 2009 Annual Report Download - page 70

AMERCO AND CONSOLIDATED ENTITIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS -- (CONTINUED)
FASB Staff Position FAS 157-3, Determining the Fair Value of a Financial Asset When the Market for That Asset Is
Not Active. This FSP applies to financial assets within the scope of accounting pronouncements that require or permit fair
value measurements in accordance with SFAS 157. This FSP clarifies the application of Statement 157 in a market that is
not active and provides an example to illustrate key considerations in determining the fair value of a financial asset when
the market for that financial asset is not active.
The Company adopted SFAS 159, The Fair Value Option for Financial Assets and Financial Liabilities (“SFAS 159”)
effective April 1, 2008, its required effective date for AMERCO. SFAS 159 provides the option to measure certain
financial assets and liabilities at fair value with any changes in fair value recognized in earnings. SFAS 159 allows for the
application of these rules on an instrument-by-instrument basis upon the initial recognition of the asset or liability, or upon
an event that gives rise to a new basis of accounting for that instrument. The Company did not elect to measure any
additional financial assets or liabilities at fair value; therefore, the adoption of SFAS 159 had no effect on the Company’s
consolidated financial statements.
In March 2008, the FASB issued SFAS 161, Disclosures about Derivative Instruments and Hedging Activities (“SFAS
161”) which amends SFAS 133 to require expanded disclosures about derivative instruments and hedging activities
regarding (1) the ways in which an entity uses derivatives, (2) the accounting for derivatives and hedging activities, and (3)
the impact that derivatives have (or could have) on an entity's financial position, financial performance, and cash flows.
SFAS 161 is effective for financial statements of fiscal years and interim periods beginning after November 15, 2008, with
early application encouraged. While disclosures for earlier comparative periods presented at initial adoption are not
required, they are encouraged; following initial adoption, comparative disclosures are required only for periods after such
adoption. The adoption of SFAS 161 required the Company to expand its disclosures in Note 11 Interest on Borrowings of
the Notes to Consolidated Financial Statements.
Recent Accounting Pronouncements
In December 2007, the Financial Accounting Standards Board (“FASB”) issued SFAS 141(R), Business Combinations
(“SFAS 141(R)”). SFAS 141(R) provides companies with principles and requirements on how an acquirer recognizes and
measures in its financial statements the identifiable assets acquired, liabilities assumed, and any noncontrolling interest in
the acquiree as well as the recognition and measurement of goodwill acquired in a business combination. SFAS 141(R) also
requires certain disclosures to enable users of the financial statements to evaluate the nature and financial effects of the
business combination. Acquisition costs associated with the business combination will generally be expensed as incurred.
SFAS 141(R) is effective for business combinations occurring in fiscal years beginning after December 15, 2008, which
will require us to adopt these provisions for business combinations occurring in fiscal 2010 and thereafter. Early adoption
of SFAS 141(R) is not permitted.
In December 2007, the FASB issued SFAS 160, Noncontrolling Interests in Consolidated Financial Statements — an
amendment of ARB No. 51 (“SFAS 160”). This Statement clarifies that a noncontrolling interest in a subsidiary is an
ownership interest in the consolidated entity that should be reported as equity in the consolidated financial statements. This
Statement changes the way the consolidated income statement is presented by requiring net income to be reported at
amounts that include the amounts attributable to both the parent and the noncontrolling interest and to disclose those
amounts on the face of the income statement. SFAS 160 is effective for fiscal years beginning after December 15, 2008.
Early adoption of SFAS 160 is not permitted. The Company does not believe that the adoption of this statement will have a
material impact on our financial statements.
In April 2009, the FASB issued (FSP) FAS 115-2 and FAS 124-2, Recognition and Presentation of Other-Than-
Temporary Impairments, which segregates credit and noncredit components of impaired debt securities that are not
expected to be sold. Impairments will still have to be measured at fair value in other comprehensive income. The FSP also
requires some additional disclosures regarding expected cash flows, credit losses, and an aging of securities with unrealized
losses. 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 Company does not believe that the adoption of this statement
will have a material impact on our financial statements.
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