Visa 2008 Annual Report Download - page 90

Table of Contents
Critical Estimates Assumptions and Judgment
Impact if Actual Results
Differ from Assumptions
considerable management judgment and is based on the evaluation of a number of factors,
including the competitive environment, market share, customer history and
macroeconomic factors. We determined that our brand and customer relationships
intangible assets have indefinite lives, based on our significant market share, history of
strong revenue and cash flow performance, and historical retention rates which we expect
to continue for the foreseeable future.
Impairment testing for assets, other than goodwill, requires the allocation of cash flows to
those assets or group of assets and if required, an estimate of fair value for the assets or
group of assets. Impairment testing for goodwill requires us to assign assets and liabilities
to reporting units along with estimating future cash flows for those reporting units based
on assumptions of future events.
Legal and Regulatory Matters
We are currently involved in
various claims and legal
proceedings, the outcomes of
which are not within our complete
control or may not be known for
prolonged periods of time.
Management is required to assess
the probability of loss and amount
of such loss, if any, in preparing
our financial statements.
We evaluate the likelihood of a potential loss from any claim or legal proceeding to which
we or any of our subsidiaries is a party in accordance with SFAS No. 5, "Accounting for
Contingencies" (SFAS 5). We record a liability for claims and legal proceedings when a
loss is considered probable and the amount can be reasonably estimated. In most cases,
significant judgment is required in both the determination of probability and the
determination as to whether an exposure is reasonably
Due to the inherent
uncertainties of the legal and
regulatory process in the
multiple jurisdictions in which
we operate, our judgments
may be materially different
than the actual outcomes,
which could have material
adverse effects on our
business, financial condition
and results of operations.
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