Urban Outfitters 2010 Annual Report Download - page 63

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URBAN OUTFITTERS, INC.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS—(Continued)
regarding the collectability of its accounts receivable. The Company maintains cash accounts that, at
times, may exceed federally insured limits. The Company has not experienced any losses from
maintaining cash accounts in excess of such limits. Management believes that it is not exposed to any
significant risks related to its cash accounts.
Recently Issued Accounting Pronouncements
In June 2009, the Financial Accounting Standards Board (“FASB”) issued SFAS No. 167,
Amendments to FASB Interpretation No. 46(R), which was codified into ASC Topic 810. This
standard responds to concerns about the application of certain key provisions of FASB Interpretation
(FIN) 46(R), including those regarding the transparency of the involvement with variable interest
entities. Specifically, ASC Topic 810 requires a qualitative approach to identifying a controlling
financial interest in a variable interest entity (“VIE”) and requires ongoing assessment of whether an
entity is a VIE and whether an interest in a VIE makes the holder the primary beneficiary of the VIE.
In addition, the standard requires additional disclosures about the involvement with a VIE and any
significant changes in risk exposure due to that involvement. The provisions of ASC Topic 810 are
effective for fiscal years beginning after November 15, 2009. The Company plans to adopt these
provisions in fiscal 2011 and anticipates the adoption to have no effect on its financial condition,
results of operations or cash flows.
F-14