Cabela's 2009 Annual Report Download - page 74

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65
In December 2007, the FASB issued ASC Section 810-10-65, Consolidation: Overall: Transition and Effective
Date Information. This standard amends ARB No. 51 to establish accounting and reporting standards for the
noncontrolling interest in a subsidiary and for the deconsolidation of a subsidiary. We adopted the provisions of ASC
810-10-65 effective December 28, 2008. The adoption of this statement did not have a material effect on our financial
position or results of operations.
In February 2008, the FASB updated ASC Topic 860, Transfers and Servicing. The objective of this update is
to provide implementation guidance on accounting for a transfer of a financial asset and repurchase financing. The
update presumes that an initial transfer of a financial asset and a repurchase financing are considered part of the same
arrangement (linked transaction) under ASC Topic 860. However, if certain criteria are met, the initial transfer and
repurchase financing shall not be evaluated as a linked transaction and shall not be evaluated under ASC Topic 860.
We adopted the update to ASC Topic 860 effective December 28, 2008. The adoption of this statement did not have
a material effect on our financial position or results of operations.
In March 2008, the FASB updated ASC Topic 815, Derivatives and Hedging. This update changes the existing
disclosure requirements in ASC Topic 815. ASC Topic 815 now requires enhanced disclosures about an entity’s
derivative and hedging activities. We adopted the updates to ASC Topic 815 effective December 28, 2008. The
adoption of this statement did not have a material effect on our financial position or results of operations.
In April 2009, the FASB issued the following:
• Update to ASC Section 820-10-65, Fair Value Measurements and Disclosures: Overall: Transition and
Open Effective Date Information,
• Update to ASC Section 320-10-65, Investments – Debt and Equity Securities: Overall: Transition and
Open Effective Date Information
• Update to ASC Section 825-10-65, Financial Instruments: Overall: Transition and Open Effective Date
Information
ASC 820-10-65 indicates that when determining the fair value of an asset or liability that is not a Level 1
fair value measurement, an entity should assess whether the volume and level of activity for the asset or liability
have significantly decreased when compared with normal market conditions. If the entity concludes that there
has been a significant decrease in the volume and level of activity, a quoted price (e.g., observed transaction) may
not be determinative of fair value and may require a significant adjustment. ASC Section 320-10-65 modifies the
requirements for recognizing other-than-temporarily impaired debt securities and changes the existing impairment
model for such securities. These statements also modify the presentation of other-than-temporary impairment losses
and increase the frequency of and expand already required disclosures about other-than-temporary impairment for
debt and equity securities. ASC Section 825-10-65 requires publicly traded companies to disclose the fair value of
financial instruments within the scope of ASC 825 in interim financial statements, adding to the current requirement
to make those disclosures in annual financial statements. This staff position also requires that companies disclose
the method or methods and significant assumptions used to estimate the fair value of financial instruments and a
discussion of changes, if any, in the method or methods and significant assumptions during the period. We adopted
the provisions of these staff positions effective for the second quarter ended June 27, 2009. The adoption of these staff
positions did not have a material effect on our financial position or results of operations.
In May 2009, the FASB issued ASC Topic 855, Subsequent Events. This statement requires management to
evaluate subsequent events through the date the financial statements are either issued, or available to be issued. ASC
Topic 855 also requires companies to disclose the date through which subsequent events have been evaluated.