World Fuel Services 2002 Annual Report Download - page 36

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Recent Accounting Pronouncements
In April 2002, we adopted SFAS No. 144, “Accounting for the Impairment or Disposal of Long-Lived Assets.” SFAS
No. 144 addresses financial accounting and reporting for the impairment or disposal of long-lived assets, excluding goodwill.
The adoption of SFAS No. 144 did not have a material effect on our consolidated financial statements.
In November 2002, the FASB issued Interpretation No. 45 ("FIN No. 45"), "Guarantor's Accounting and Disclosure
Requirements for Guarantees, Including Indirect Guarantees of Indebtedness of Others." FIN No. 45 clarifies and expands
on the existing disclosure requirements for guarantees. FIN No. 45 also requires recognition of a liability at fair value of a
company’s obligations under certain guarantee contracts. The disclosure requirements are effective for financial statements
of interim or annual periods ending after December 15, 2002. We believe that our consolidated financial statements as of
and for the nine months ended December 31, 2002 are in compliance with the disclosure requirements of FIN No. 45. The
initial recognition and measurement provisions of FIN No. 45 are applied only on a prospective basis to guarantees issued
after December 31, 2002, irrespective of the guarantor’s fiscal year-end. We are currently evaluating the impact of FIN No.
45, if any, on our financial position and results of operations.
In January 2003, the FASB issued Interpretation No. 46 ("FIN No. 46"), "Consolidation of Variable Interest Entities."
FIN No. 46 expands upon and strengthens existing accounting guidance that addresses when a company should include in its
financial statements the assets, liabilities and activities of another entity. A variable interest entity is a corporation,
partnership, trust, or any other legal structure used for business purposes that either (a) does not have equity investors with
voting rights or (b) has equity investors that do not provide sufficient financial resources for the entity to support its
activities. FIN No. 46 requires a variable interest entity to be consolidated by a company if that company is subject to a
majority of the risk of loss from the variable interest entity's activities or is entitled to receive a majority of the entity's
residual returns or both. The consolidation requirements of FIN No. 46 apply immediately to variable interest entities
created after January 31, 2003. The consolidation requirements apply to older entities in the first fiscal year or interim period
beginning after June 15, 2003. Disclosure requirements apply to any financial statements issued after January 31, 2003.
Since currently we do not have variable interest entities, we do not believe that the implementation of FIN No. 46 will have a
material effect on our consolidated financial statements and related disclosures.
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