HP 2007 Annual Report Download - page 58

HEWLETT-PACKARD COMPANY AND SUBSIDIARIES
Management’s Discussion and Analysis of
Financial Condition and Results of Operations (Continued)
estimate the impact, if any, that SFAS 159 will have on our consolidated results of operations and financial condition.
In June 2007, the FASB also ratified EITF 07-3, “Accounting for Nonrefundable Advance Payments for Goods or
Services Received for Use in Future Research and Development Activities” (“EITF 07-3”). EITF 07-3 requires that
nonrefundable advance payments for goods or services that will be used or rendered for future research and development
activities be deferred and capitalized and recognized as an expense as the goods are delivered or the related services are
performed. EITF 07-3 is effective, on a prospective basis, for fiscal years beginning after December 15, 2007 and will be
adopted by us in the first quarter of fiscal 2009. We do not expect the adoption of EITF 07-3 to have a material effect on our
consolidated results of operations and financial condition.
In December 2007, the FASB issued SFAS No. 141 (revised 2007), “Business Combinations” (“SFAS 141R”).
SFAS 141R establishes principles and requirements for how an acquirer recognizes and measures in its financial statements
the identifiable assets acquired, the liabilities assumed, any noncontrolling interest in the acquiree and the goodwill acquired.
SFAS 141R also establishes disclosure requirements to enable the evaluation of the nature and financial effects of the
business combination. SFAS 141R is effective as of the beginning of an entity’ s fiscal year that begins after December 15,
2008, and will be adopted by us in the first quarter of fiscal 2010. We are currently evaluating the potential impact, if any, of
the adoption of SFAS 141R on our consolidated results of operations and financial condition.
In December 2007, the FASB issued SFAS No. 160, “Noncontrolling Interests in Consolidated Financial Statements—an
amendment of Accounting Research Bulletin No. 51” (“SFAS 160”). SFAS 160 establishes accounting and reporting
standards for ownership interests in subsidiaries held by parties other than the parent, the amount of consolidated net income
attributable to the parent and to the noncontrolling interest, changes in a parent’ s ownership interest and the valuation of
retained noncontrolling equity investments when a subsidiary is deconsolidated. SFAS 160 also establishes disclosure
requirements that clearly identify and distinguish between the interests of the parent and the interests of the noncontrolling
owners. SFAS 160 is effective as of the beginning of an entity’ s fiscal year that begins after December 15, 2008, and will be
adopted by us in the first quarter of fiscal 2010. We are currently evaluating the potential impact, if any, of the adoption of
SFAS 160 on our consolidated results of operations and financial condition.
In addition to the SFAS 158 adoption mentioned above, we adopted the following accounting standards in fiscal 2007,
none of which had a material effect on our consolidated results of operations during such period or financial condition at the
end of such period:
• SFAS No. 154, “Accounting for Changes and Error Corrections”;
• Staff Accounting Bulletin No. 108, “Considering the Effects of Prior Year Misstatements when Quantifying
Misstatements in Current Year Financial Statements”;
• EITF 05-5, “Accounting for Early Retirement or Postemployment Programs with Specific Features (Such as Terms
Specified in Altersteilzeit Early Retirement Arrangements)”; and
• EITF 06-9, “Reporting a Change in (or the Elimination of) a Previously Existing Difference between the Fiscal Year
End of a Parent Company and That of a Consolidated Entity or between the Reporting Period of an Investor and
That of an Equity Method Investee.”
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