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long-lived, nonÑnancial assets be accounted for as a change in accounting estimate aÅected by a change in
accounting principle and that correction of errors in previously issued Ñnancial statements should be
termed a ""restatement''. SFAS No. 154 is eÅective for accounting changes and correction of errors made
in Ñscal years beginning after December 15, 2005. We do not believe that, upon adoption, SFAS No. 154
will have a material impact on our Consolidated Financial Statements, however, after adoption, if a change
in accounting principle is made, SFAS No. 154 could have a material impact on our Consolidated
Financial Statements.
In February 2006, the FASB issued SFAS No. 155, ""Accounting for Certain Hybrid Financial
Instruments Ì An Amendment of FASB Statements No. 133 and 140''. SFAS No. 155 (1) permits fair
value measurement for any hybrid Ñnancial instrument that contains an embedded derivative that
otherwise would require bifurcation, (2) clariÑes that interest-only strips and principal-only strips are not
subject to the requirements of SFAS No. 133, ""Accounting for Derivative Instruments and Hedging
Activities'', (3) establishes a requirement to evaluate interests in securitized Ñnancial assets to identify
interests that are freestanding derivatives or that are hybrid Ñnancial instruments that contain an embedded
derivative requiring bifurcation, (4) clariÑes that concentrations of credit risk in the form of subordination
are not embedded derivatives, and (5) amends SFAS No. 140, ""Accounting for Transfers and Servicing of
Financial Assets and Extinguishments of Liabilities Ì A Replacement of FASB Statement 125'' to
eliminate the prohibition on a qualifying special-purpose entity from holding a derivative Ñnancial
instrument that pertains to a beneÑcial interest other than another derivative Ñnancial instrument.
SFAS No. 155 is eÅective for all Ñnancial instruments acquired or issued for Ñscal years beginning after
September 15, 2006. We do not believe the adoption of SFAS No. 155 will have a material impact on our
Consolidated Financial Statements.
(2) FINANCIAL INSTRUMENTS
(a) Fair Value of Financial Instruments
Cash, cash equivalents, receivables, accounts payable and accrued and other liabilities are valued at their
carrying amounts as they approximate their fair value due to the short maturity of these Ñnancial
instruments.
78