Electronic Arts 2009 Annual Report Download - page 155

Annual Report
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.
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
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