Vistaprint 2009 Annual Report Download - page 85

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VISTAPRINT LIMITED
(predecessor to Vistaprint N.V.)
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS—(Continued)
Years Ended June 30, 2009, 2008 and 2007
(in thousands, except share and per share data)
The Company maintains an allowance for doubtful accounts for potential credit losses based
upon specific customer accounts and historical trends, and such losses to date in the aggregate have
not exceeded the Company’s expectations.
New Accounting Pronouncements
In December 2007, the FASB issued SFAS No. 141(R) Business Combinations (“SFAS 141(R)”).
SFAS 141(R) states that all business combinations (whether full, partial or step acquisitions) will result
in all assets and liabilities of an acquired business being recorded at their fair values. Certain forms of
contingent consideration and certain acquired contingencies will also be recorded at fair value at the
acquisition date. SFAS 141(R) also requires acquisition costs be expensed as incurred and
restructuring costs will be expensed in periods after the acquisition date in accordance with the
requirements of FASB Statement 146, Accounting for Costs of Exit or Disposal Activities. SFAS 141(R)
is effective for financial statements issued for fiscal years beginning after December 15, 2008. Earlier
adoption is prohibited. The Company does not believe that the adoption of this standard will have a
material impact on its consolidated financial statements.
In December 2007, the FASB issued SFAS No. 160, Noncontrolling Interests in Consolidated
Financial Statements-an amendment of Accounting Research Bulletin No. 51 (“SFAS 160”). SFAS 160
requires a company to clearly identify and present ownership interests in subsidiaries held by parties
other than the company in the consolidated financial statements within the equity section but separate
from the company’s equity. It also requires 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 ownership interest be accounted for similarly, as equity
transactions; and when a subsidiary is deconsolidated, any retained noncontrolling equity investment in
the former subsidiary and the gain or loss on the deconsolidation of the subsidiary be measured at fair
value. SFAS 160 is effective for fiscal years, and interim periods within those fiscal years, beginning on
or after December 15, 2008. Earlier adoption is prohibited. The Company does not believe that the
adoption of this standard will have a material impact on its consolidated financial statements.
In May 2008, the FASB issued SFAS No. 162, The Hierarchy of Generally Accepted Accounting
Principles (“SFAS 162”). SFAS 162 identifies the sources of accounting principles and the framework
for selecting the principles to be used in the preparation of a company’s financial statements that are
presented in conformity with generally accepted accounting principles in the United States. Any effect
of applying the provisions of this SFAS 162 will be reported as a change in accounting principle. The
Company does not believe that the adoption of this standard will have a material impact on its
consolidated financial statements.
In June 2009, the FASB issued SFAS No. 167, Amendments to FASB Interpretation No. 46(R),
which is effective for fiscal years beginning on or after December 15, 2008. This Statement amends
FIN 46(R), Consolidation of Variable Interest Entities an interpretation of ARB No. 51, to require
revised evaluations of whether entities represent variable interest entities, ongoing assessments of
control over such entities, and additional disclosures for variable interests. The Company does not
believe the adoption of this pronouncement will not have a material impact on its financial statements.
79
Form 10-K