iHeartMedia 2002 Annual Report Download - page 75

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statements and accompanying notes. The Company bases its estimates on historical experience and on various other assumptions that are
believed to be reasonable under the circumstances. Actual results could differ from those estimates.
New Accounting Pronouncements
In June 2001, the Financial Accounting Standards Board issued Statement of Financial Accounting Standards No. 143, Accounting for Asset
R
etirement Obligations (“Statement 143”). Statement 143 applies to legal obligations associated with the retirement of long-lived assets that
result from acquisition, construction, development and/or the normal operation of a long-lived asset. Statement 143 is effective for financial
statements for fiscal years beginning June 15, 2002. The Company is required to adopt this statement in the first quarter of 2003. Management
does not believe adoption of this statement will materially impact the Company’s financial position or results of operations.
On January 1, 2002, the Company adopted Financial Accounting Standards No. 144, Accounting for the Impairment or Disposal of Long-Lived
A
ssets (“Statement 144”). Statement 144 supersedes Financial Accounting Standards No. 121, Accounting for the Impairment of Long-Lived
A
ssets and for Long-Lived Assets to be Disposed of, and the accounting and reporting provisions of APB Opinion No. 30, Reporting the Results
of Operations-Reporting the Effects of Disposal of a Segment of a Business, and Extraordinary, Unusual and Infrequently Occurring Events
and Transactions, for the disposal of a segment of a business. Statement 144 also amends ARB No. 51, Consolidated Financial Statements, to
eliminate the exception to consolidation for a subsidiary for which control is likely to be temporary. Adoption of Statement 144 had no impact
on the financial position of the Company or its results of operations.
In April 2002, the Financial Accounting Standards Board issued Statement of Financial Accounting Standards No. 145, Rescission of FASB
Statements No. 4, 44, and 64, Amendment of FASB Statement No. 13, and Technical Corrections (“Statement 145”). Statement 145 rescinds
FASB Statement No. 4, Reporting Gains and Losses from Extinguishment of Debt, and an amendment of that Statement, and FASB Statement
No. 64, Extinguishments of Debt Made to Satisfy Sinking-Fund Requirements. The Company has elected to early adopt this statement effective
January 1, 2002. Management does not believe adoption of this statement materially impacted the Company’s financial position or results of
operations.
In July 2002, the Financial Accounting Standards Board issued Statement of Financial Accounting Standards No. 146, Accounting for Costs
A
ssociated with Exit or Disposal Activities (“Statement 146”). Statement 146 address the accounting and reporting for costs associated with
exit or disposal activities and nullifies Emerging Issues Task Force (“EITF”)IssueNo.94-3,“Liability Recognition for Certain Employee
Terminations Benefits and Other Costs to Exit an Activity.”It also substantially nullifies EITF Issue No. 88-10, “Costs Associated with Lease
Modification or Termination.”Statement 146 is effective for exit or disposal activities initiated after December 31, 2002. Management does not
believe that adoption of this statement will materially impact the Company’s financial position or results of operations.
In November 2002, the Financial Accounting Standards Board issued Interpretation No. 45, Guarantor’s Accounting and Disclosure
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equirements for Guarantees, Including Indirect Guarantees of Indebtedness of Others (“the Interpretation”). The Interpretation applies to
contracts or indemnification agreements that contingently require the guarantor to make payments to the guaranteed party based on changes in
an underlying that is related to an asset, liability, or an equity security of the guaranteed party. The Interpretation’s disclosure requirements are
effective for financial statements of interim or annual periods ending after December 15, 2002. The Interpretation’s initial recognition and
initial measurement provisions are applicable on a prospective basis to guarantees issued or modified after December 31, 2002, irrespective of
the guarantor’s fiscal year-end. The Company adopted the disclosure requirements of this Interpretation for its 2002 annual report.
Management does not believe that adoption of the initial recognition and initial measurement requirements of the Interpretation will materially
impact the Company’s financial position or results of operations.
On December 31, 2002, the Financial Accounting Standards Board issued Statement of Financial Accounting Standards No. 148, Accounting
f
or Stock-Based Compensation –Transition and Disclosure (“Statement 148”). Statement 148 amends Financial Accounting Standards
No. 123, Accounting for Stock-Based Compensation (“Statement 123”), to provide alternative methods of transition to Statement 123’sfair
value method of account for
69