Visa 2008 Annual Report Download - page 92

Table of Contents
Impact of Recent Accounting Pronouncements
In September 2006, the FASB issued SFAS No. 157, Fair Value Measurements ("SFAS 157"), which defines fair value and establishes a framework for
measuring fair value in generally accepted accounting principles, and expands disclosure requirements about fair value measurements. In February 2008, the
FASB issued FASB Staff Position ("FSP No. FAS 157-2"), Effective Date of FASB Statement No. 157 ("FSP FAS 157-2"), which delays the effective date of
SFAS 157 until fiscal years beginning after November 15, 2008 for all non-financial assets and non-financial liabilities, except for items that are recognized or
disclosed at fair value in the financial statements on a recurring basis (at least annually). SFAS 157 is effective for financial assets and liabilities for fiscal
years beginning after November 15, 2007. We have evaluated the impact of adopting SFAS 157 on our financial assets and liabilities and do not believe that
the standard will have a significant impact on our consolidated financial statements upon adoption on October 1, 2008. We are in the process of evaluating the
impact, if any, on our consolidated financial statements of adopting FSP FAS 157-2 on our 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. Effective October 1, 2008, we elected the fair value option for certain investment securities which are held in connection with
employee compensation plans. These securities will be reported as trading securities with changes in fair value recorded as other income (expense) on our
consolidated statements of operations.
In December 2007, the FASB issued SFAS No. 160, Noncontrolling Interests in Consolidated Financial Statements—an amendment of ARB No. 51
("SFAS 160"). SFAS 160 requires that the ownership interests in subsidiaries held by parties other than the parent and the amount of consolidated net income
attributable to the parent and to the noncontrolling interest be clearly identified and presented on the face of the consolidated statement of income, changes in
a parent's ownership interest while the parent retains its controlling financial interest in its subsidiary be accounted for consistently, and that any retained
noncontrolling equity investment in a deconsolidated former subsidiary be initially measured at fair value. SFAS 160 also requires entities to provide
sufficient disclosures to clearly identify and distinguish between the interests of the parent and the interests of the noncontrolling owners. SFAS 160 is
effective for fiscal years, and interim periods within those fiscal years, beginning on or after December 15, 2008. Early adoption is prohibited. The adoption of
this statement is not expected to have an effect on our consolidated financial statements.
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. We are currently evaluating the impact, if any, of adopting SFAS 141R on our
consolidated financial statements.
In March 2008, the FASB issued SFAS No. 161, Disclosures about Derivative Instruments and Hedging Activities—an amendment of FASB Statement
No. 133 ("SFAS 161"). SFAS 161 changes the
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