Electronic Arts 2008 Annual Report Download - page 147

activities until the related goods are delivered or the related services are performed. EITF 07-03 is effective
for interim or annual reporting periods in fiscal years beginning after December 15, 2007 and requires
prospective application for new contracts entered into after the effective date. The adoption of EITF 07-03 will
not have a material impact on our Consolidated Financial Statements.
In December 2007, the FASB issued SFAS No. 141 (Revised 2007) (“SFAS No. 141(R)”), “Business
Combinations”, which requires the recognition of assets acquired, liabilities assumed, and any noncontrolling
interest in an acquiree at the acquisition date fair value with limited exceptions. SFAS No. 141(R) will change
the accounting treatment for certain specific items and includes a substantial number of new disclosure
requirements. SFAS No. 141(R) applies prospectively to business combinations for which the acquisition date
is on or after the beginning of the first annual reporting period beginning on or after December 15, 2008. The
adoption of SFAS No. 141(R) will have a material impact on our Consolidated Financial Statements for
material acquisitions consummated on or after March 29, 2009.
In December 2007, the FASB issued SFAS No. 160, “Noncontrolling Interests in Consolidated Financial
Statements — An Amendment of ARB No. 51”, which establishes new accounting and reporting standards for
noncontrolling interest (minority interest) and for the deconsolidation of a subsidiary. SFAS No. 160 also
includes expanded disclosure requirements regarding the interests of the parent and its noncontrolling interest.
SFAS No. 160 is effective for fiscal years, and interim periods within those fiscal years, beginning on or after
December 15, 2008. We do not expect the adoption of SFAS No. 160 to have a material impact on our
Consolidated Financial Statements.
In December 2007, the FASB ratified EITF consensus conclusion on EITF 07-01, “Accounting for Collabora-
tive Arrangements”. EITF 07-01 defines collaborative arrangements and establishes reporting requirements for
transactions between participants in a collaborative arrangement and between participants in the arrangement
and third parties. Under this conclusion, a participant to a collaborative arrangement should disclose
information about the nature and purpose of its collaborative arrangements, the rights and obligations under
the collaborative arrangements, the accounting policy for collaborative arrangements, and the income statement
classification and amounts attributable to transactions arising from the collaborative arrangement between
participants for each period an income statement is presented. EITF 07-01 is effective for interim or annual
reporting periods in fiscal years beginning after December 15, 2008 and requires retrospective application to
all prior periods presented for all collaborative arrangements existing as of the effective date. While we have
not yet completed our analysis, we do not anticipate the implementation of EITF 07-01 to have a material
impact on our Consolidated Financial Statements.
In March 2008, the FASB issued SFAS No. 161, “Disclosures about Derivative Instruments and Hedging
Activities — An Amendment of SFAS No. 133”. SFAS 161 requires enhanced disclosures about an entity’s
derivative and hedging activities, including how an entity uses derivative instruments, how derivative
instruments and related hedged items are accounted for under SFAS No. 133, “Accounting for Derivative
Instruments and Hedging Activities”, and how derivative instruments and related hedged items affect an
entity’s financial position, financial performance, and cash flows. The provisions of SFAS No. 161 are
effective for financial statements issued for fiscal years beginning after November 15, 2008, and interim
periods within those fiscal years. We do not expect the adoption of SFAS No. 161 to 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 financial instruments.
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