Electronic Arts 2009 Annual Report Download - page 131

Annual Report
Impact of Recently Issued Accounting Standards
In December 2007, the Financial Accounting Standards Board (“FASB”) issued SFAS No. 141(R), 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. In April 2009, the
FASB issued FSP FAS 141(R)-1, Accounting for Assets Acquired and Liabilities Assumed in a Business
Combination That Arise from Contingencies. FSP FAS 141(R)-1 amends and clarifies SFAS No. 141(R) to
amend the initial recognition and measurement, subsequent measurement and accounting, and disclosure of
assets and liabilities arising from contingencies in a business combination. SFAS No. 141(R) and FSP FAS
141(R)-1 apply 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. We are currently evaluating the
impact FSP FAS 141(R)-1 will have on our Consolidated Financial Statements. 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 interests (e.g., minority interests) and for the deconsolidation of a subsidiary. SFAS No. 160 also
includes expanded disclosure requirements regarding the interests of the parent and its noncontrolling interests.
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 Emerging Issues Task Force’s (“EITF”) consensus conclusion on EITF
07-01, Accounting for Collaborative 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 February 2008, the FASB issued FSP Financial Accounting Standard (“FAS”) FAS 157-2, Effective Date of
FASB Statement No. 157. FSP FAS 157-2 delays the effective date of SFAS No. 157, Fair Value Measurements,
for certain nonfinancial assets and nonfinancial liabilities, except those that are recognized or disclosed at fair
value in the financial statements on a recurring basis (at least annually). SFAS No. 157 establishes a framework
for measuring fair value and expands disclosures about fair value measurements. FSP FAS 157-2 defers the
effective date of certain provisions of SFAS No. 157 to fiscal years beginning after November 15, 2008, and
interim periods within those fiscal years, for items within the scope of this FSP. We do not expect the adoption of
FSP FAS 157-2 to have a material impact on our Consolidated Financial Statements.
In April 2008, the FASB issued FSP FAS 142-3, Determination of the Useful Life of Intangible Assets. FSP FAS
142-3 amends the factors an entity should consider in developing renewal or extension assumptions used in
determining the useful life of recognized intangible assets under SFAS No. 142, Goodwill and Other Intangible
Assets. This guidance for determining the useful life of a recognized intangible asset applies prospectively to
intangible assets acquired individually or with a group of other assets in either an asset acquisition or business
combination. FSP FAS 142-3 is effective for fiscal years, and interim periods within those fiscal years, beginning
after December 15, 2008, and early adoption is prohibited. We are currently evaluating the impact FSP FAS
142-3 will have on our Consolidated Financial Statements.
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