Washington Post 2008 Annual Report Download - page 76

financial assets and liabilities and, therefore, SFAS 159 did not
have an impact on the Company’s consolidated financial
statements.
In December 2007, the FASB issued SFAS No. 141 (Revised
2007), “Business Combinations” (“SFAS 141R”). SFAS 141R
requires that the acquisition method of accounting be applied to all
business combinations, which significantly changes the accounting
for certain aspects of business combinations. Under SFAS 141R, an
acquiring entity is required to recognize all of the assets acquired
and liabilities assumed in a transaction at the acquisition-date fair
value with limited exceptions. SFAS 141R changes the accounting
treatment for certain specific acquisition-related items, including
(1) expensing acquisition-related costs as incurred; (2) valuing
noncontrolling interests at fair value at the acquisition date; and
(3) expensing restructuring costs associated with an acquired
business. SFAS 141R also includes a substantial number of new
disclosure requirements. SFAS 141R is to be applied prospectively
to business combinations for which the acquisition date is on or
after the beginning of fiscal year 2009, with the exception of the
accounting for valuation allowances on deferred taxes and
acquired tax contingencies. SFAS 141R amends SFAS 109 such
that adjustments made to valuation allowances on deferred taxes
and acquired tax contingencies associated with acquisitions that
closed prior to the effective date of SFAS 141R would also apply
the provisions of SFAS 141R. The Company expects SFAS 141R to
have an impact on its accounting for future business combinations
once adopted, but the effect is dependent upon the acquisitions that
are made in the future. Also, since the Company has acquired
deferred tax assets for which valuation allowances were recorded
at the acquisition date, SFAS 141R could affect the results of
operations if changes in the valuation allowances occur subsequent
to adoption. For additional discussion on deferred tax valuation
allowances, refer to Note G.
In December 2007, the FASB issued SFAS No. 160,
“Noncontrolling Interests in Consolidated Financial Statements”
(“SFAS 160”). SFAS 160 establishes new accounting and reporting
standards for the noncontrolling interest in a subsidiary and for the
deconsolidation of a subsidiary. It clarifies that a noncontrolling
interest in a subsidiary (minority interest) is an ownership interest in
the consolidated entity that should be reported as equity in the
consolidated financial statements and separate from the parent
company’s equity. Among other requirements, this statement requires
consolidated net income to be reported at amounts that include the
amounts attributable to both the parent and the noncontrolling
interest. This statement also requires disclosure, on the face of the
consolidated financial statements, of the amounts of consolidated
net income attributable to the parent and to the noncontrolling
interest. This statement is effective for the Company at the beginning
of fiscal year 2009. The Company is in the process of evaluating
the impact that SFAS 160 will have on its consolidated financial
statements.
In April 2008, the FASB issued FASB Staff Position (“FSP”)
No. 142-3, “Determination of the Useful Life of Intangible Assets”
(“FSP 142-3”). FSP 142-3 amends the factors to be considered in
developing renewal or extension assumptions used to determine the
useful life of intangible assets under SFAS No. 142, “Goodwill and
Other Intangible Assets.” Its intent is to improve the consistency
between the useful life of an intangible asset and the period of
expected cash flows used to measure its fair value. This FSP is
effective for the Company at the beginning of fiscal year 2009. The
Company is in the process of evaluating the impact of FSP 142-3
on its consolidated financial statements.
In June 2008, the FASB issued FSP Emerging Issues Task Force
(“EITF”) No. 03-6-1, “Determining Whether Instruments Granted in
Share-Based Payment Transactions Are Participating Securities”
(“FSP 03-6-1”). FSP 03-6-1 clarifies that unvested share-based
payment awards that contain nonforfeitable rights to dividends or
dividend equivalents (whether paid or unpaid) are participating
securities and are to be included in the computation of earnings per
share under the two-class method described in SFAS No. 128,
“Earnings Per Share.” This FSP is effective for the Company at the
beginning of fiscal year 2009 and requires all presented prior-
period earnings per share data to be adjusted retrospectively. The
Company is in the process of evaluating the impact that FSP 03-6-1
will have on its consolidated financial statements.
In October 2008, the FASB issued FSP No. 157-3, “Determining
the Fair Value of a Financial Asset When the Market for That Asset
Is Not Active” (“FSP 157-3”). FSP 157-3 addresses how the fair
value of a financial asset is determined when the market for that
financial asset is inactive. FSP 157-3 was effective upon issuance,
including prior periods for which financial statements had not yet
been issued. The implementation of this standard did not have any
impact on the Company’s consolidated financial statements.
In November 2008, the FASB issued EITF No. 08-6, “Equity
Method Investment Accounting Considerations” (“EITF 08-6”). This
EITF is effective on a prospective basis for the Company at the
beginning of fiscal year 2009, consistent with the effective dates of
SFAS 141R and SFAS 160. EITF 08-6 addresses the impact that
SFAS 141R and SFAS 160 might have on the accounting for equity
method investments, including how the initial carrying value of an
equity method investment should be determined, how it should be
tested for impairment and how changes in classification from equity
method to cost method should be treated. The Company is in the
process of evaluating the impact EITF 08-6 will have on its
consolidated financial statements.
In December 2008, the FASB issued FSP No. 132R-1, “Employers’
Disclosures about Postretirement Benefit Plan Assets” (“FSP 132R-1”).
64 THE WASHINGTON POST COMPANY