LabCorp 2007 Annual Report Download - page 57

Download and view the complete annual report

Please find page 57 of the 2007 LabCorp annual report below. You can navigate through the pages in the report by either clicking on the pages listed below, or by using the keyword search tool below to find specific information within the annual report.

Page out of 60

  • 1
  • 2
  • 3
  • 4
  • 5
  • 6
  • 7
  • 8
  • 9
  • 10
  • 11
  • 12
  • 13
  • 14
  • 15
  • 16
  • 17
  • 18
  • 19
  • 20
  • 21
  • 22
  • 23
  • 24
  • 25
  • 26
  • 27
  • 28
  • 29
  • 30
  • 31
  • 32
  • 33
  • 34
  • 35
  • 36
  • 37
  • 38
  • 39
  • 40
  • 41
  • 42
  • 43
  • 44
  • 45
  • 46
  • 47
  • 48
  • 49
  • 50
  • 51
  • 52
  • 53
  • 54
  • 55
  • 56
  • 57
  • 58
  • 59
  • 60

Notes to Consolidated Financial Statements
(Dollars and shares in millions, except per share data)
Laboratory Corporation of America® Holdings 2007 55
NEW ACCOUNTING
PRONOUNCEMENTS
In September 2006, the FASB issued SFAS No. 157 “Fair Value
Measurements” (“SFAS 157”). SFAS 157 establishes a common defi nition
for fair value to be applied to U.S. generally accepted accounting principles
requiring use of fair value, establishes a framework for measuring fair
value, and expands disclosure about such fair value measurements.
SFAS 157 is effective for fi scal years beginning after November 15,
2007. In February 2008, the FASB decided to issue a fi nal Staff Position
to allow a one-year deferral of adoption of SFAS 157 for nonfi nancial
assets and nonfi nancial liabilities that are recognized or disclosed
at fair value in the fi nancial statements on a nonrecurring basis. The
FASB also decided to amend SFAS 157 to exclude FASB Statement
No. 13 and its related interpretative accounting pronouncements that
address leasing transactions. The Company is currently assessing the
impact, if any, of SFAS 157 on its consolidated fi nancial statements.
In February 2007, the FASB issued SFAS No. 159, “The Fair Value
Option for Financial Assets and Financial Liabilities” (“SFAS 159”).
SFAS 159 permits entities to choose to measure many fi nancial
instruments and certain other items at fair value. Items eligible for
this measurement include: employer and plan obligations for pension
benefi ts, other postretirement benefi ts, employee stock options, and
stock purchase plans. The Company shall report unrealized gains or losses
on items for which the fair value option has been elected in earnings
at each subsequent reporting date. This Statement is effective for the
Company as of January 1, 2008. The Company is currently assessing
the impact, if any, of SFAS 159 on its consolidated fi nancial statements.
In December 2007, the FASB issued SFAS No. 160, “Noncontrolling
Interests in Consolidated Financial Statements – an amendment of
ARB No. 51.” SFAS No. 160 requires all entities to report noncontrolling
(minority) interests in subsidiaries as equity in the consolidated fi nancial
statements. Its intention is to eliminate the diversity in practice regarding
the accounting for transactions between an entity and noncontrolling
interests. This Statement is effective for the Company as of January 1,
2009. Earlier adoption is prohibited. The Company is currently assessing
the impact, if any, of SFAS 160 on its consolidated fi nancial statements.
In December 2007, the FASB issued SFAS No. 141(R), a revised
version of SFAS No. 141, “Business Combinations.” The revision is
intended to simplify existing guidance and converge rulemaking under
U.S. generally accepted accounting principles (GAAP) with international
accounting rules. This statement applies prospectively to business
combinations where the acquisition date is on or after the beginning
of the fi rst annual reporting period beginning on or after December 15,
2008. An entity may not apply it before that date. The new standard
also converges fi nancial reporting under U.S. GAAP with international
accounting rules. The Company is currently assessing the impact, if
any, of SFAS 141(R) on its consolidated fi nancial statements.
Laboratory Corporation of America