Electronic Arts 2009 Annual Report Download - page 132

In April 2009, the FASB issued FSP FAS 107-1 and APB 28-1, Interim Disclosures about Fair Value of
Financial Instruments. FSP FAS 107-1 and APB 28-1 amends FASB Statement No. 107, Disclosures about Fair
Value of Financial Instruments, and requires disclosures about the fair value of financial instruments for interim
reporting periods of publicly traded companies as well as in annual financial statements. This FSP also amends
APB No. 28, Interim Financial Reporting, to require those disclosures in summarized financial information at
interim reporting periods. FSP FAS 107-1 and APB 28-1 is effective for interim reporting periods ending after
June 15, 2009. We are currently evaluating the impact FSP FAS 107-1 and ABP 28-1 will have on our
Consolidated Financial Statements.
In April 2009, the FASB issued FSP FAS 115-2 and FAS 124-2, Recognition and Presentation of Other-than-
Temporary Impairments. FSP FAS 115-2 and FAS 124-2 amends the other-than-temporary impairment guidance
in U.S. GAAP for debt securities, changes existing guidance for determining whether an impairment is other than
temporary to debt securities, replaces the existing requirement that the entity’s management assert it has both the
intent and ability to hold an impaired security until recovery, requires that an entity recognize noncredit losses on
held-to-maturity debt securities in other comprehensive income and amortize that amount over the remaining life
of the security in a prospective manner, requires an entity to present the total other-than-temporary impairment in
the statement of earnings with an offset for the amount recognized in other comprehensive income, and when
adopting FSP FAS 115-2 and FAS 124-2, an entity is required to record a cumulative-effect adjustment as of the
beginning of the period of adoption. This FSP does not amend existing recognition and measurement guidance
related to other-than-temporary impairments of equity securities. FSP FAS 115-2 and 124-2 is effective for
interim and annual reporting periods ending after June 15, 2009. We are currently evaluating the impact FSP
FAS 115-2 and 124-2 will have on our Consolidated Financial Statements.
In April 2009, the SEC issued SAB No. 111, which amends and replaces Topic 5.M. in the SAB Series entitled
Other Than Temporary Impairment of Certain Investments in Debt and Equity Securities. SAB No. 111
maintains the staff’s previous views related to equity securities and amends Topic 5.M. to exclude debt securities
from its scope. We do not expect the adoption of SAB 111 to have a material impact on our Consolidated
Financial Statements.
In April 2009, the FASB issued FSP FAS 157-4, Determining Fair Value When the Volume and Level of Activity
for the Asset or Liability Have Significantly Decreased and Identifying Transactions That Are Not Orderly. FSP
FAS 157-4 provides additional guidance for estimating fair value in accordance with SFAS No. 157, Fair Value
Measurements, when the volume and level of activity for the asset or liability have significantly decreased, and
includes guidance on identifying circumstances that indicate a transaction is not orderly. FSP FAS 157-4 is
effective for interim and annual reporting periods ending after June 15, 2009, and should be applied
prospectively. We are currently evaluating the impact FSP FAS 157-4 will have on our Consolidated Financial
Statements.
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