Visa 2008 Annual Report Download - page 119

Table of Contents
VISA INC.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS—(Continued)
September 30, 2008
(in millions, except as noted)
November 15, 2007. The Company evaluated the impact of adopting SFAS 157 on its financial assets and liabilities and does not believe that the standard will
have a significant impact on its consolidated financial statements upon adoption on October 1, 2008. The Company is in the process of evaluating the impact,
if any, on its consolidated financial statements of adopting FSP FAS 157-2 on its non-financial assets and liabilities.
In February 2007, the FASB issued SFAS No. 159, The Fair Value Option for Financial Assets and Financial Liabilities, Including an Amendment to
SFAS 115 ("SFAS 159"). SFAS 159 allows the measurement of many financial instruments and certain other assets and liabilities at fair value on an
instrument-by-instrument basis under a fair value option. In addition, SFAS 159 includes an amendment of SFAS No. 115, Accounting for Certain
Investments in Debt and Equity Securities, and applies to all entities with available-for-sale and trading securities. SFAS 159 is effective for fiscal years that
begin after November 15, 2007. The Company has evaluated the impact of adopting SFAS 159 on its consolidated financial statements and upon adoption on
October 1, 2008 will elect the fair value option for certain equity securities and report them as trading assets with changes in fair value recorded in other
income (expense) on the consolidated statement of operations. See Note—6 Investments. The adoption of SFAS 159 is not expected to have a significant
impact on the Company's financial position or results of operations.
In December 2007, the FASB issued SFAS No. 141 (revised 2007), Business Combinations ("SFAS 141R"). SFAS 141R changes the accounting for
business combinations including the measurement of acquirer shares issued in consideration for a business combination, the recognition of contingent
consideration, the treatment of acquisition related transaction costs, the accounting for preacquisition gain and loss contingencies, the accounting for
acquisition-related restructuring cost accruals, and the recognition of changes in the acquirer's income tax valuation allowance. SFAS 141R is effective for
fiscal years beginning after December 15, 2008, with early adoption prohibited. The Company is currently evaluating the impact, if any, of adopting SFAS
141R on its consolidated financial statements.
In April 2008, the FASB issued FSP No. FAS 142-3, Determination of the Useful Life of Intangible Assets ("FSP FAS 142-3"). FSP FAS 142-3 amends
the factors that should be considered in developing renewal or extension assumptions used to determine the useful life of a recognized intangible asset under
SFAS No. 142. FSP FAS 142-3 is effective for fiscal years beginning after December 15, 2008. The Company is currently evaluating the impact, if any, of
adopting FSP FAS 142-3 on its consolidated financial statements.
Note 3—The Reorganization
Description of the Reorganization
In a series of transactions from October 1 to October 3, 2007, Visa undertook a reorganization in which Visa U.S.A., Visa International, Visa Canada
and Inovant became direct or indirect subsidiaries of Visa Inc. and the Retrospective Responsibility Plan was established. See Note 5—Retrospective
Responsibility Plan. For financial accounting and reporting purposes, the Company has reflected the reorganization as a single transaction occurring on the
reorganization date. Visa Europe did not become a subsidiary of Visa Inc., but rather remained owned and governed by its European member financial
institutions and entered into a set of contractual arrangements with the Company in connection with the reorganization. In the reorganization, the Company
issued different classes and
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