Sony 2003 Annual Report Download - page 135

Consolidated Financial Information 2003
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For a summary of Sony's significant accounting policies, including the critical accounting policies discussed
above, please see Note 2 of Notes to the Consolidated Financial Statements.
Recently Adopted Accounting Standards
Impairment or Disposal of Long-Lived Assets
On April 1, 2002, Sony adopted Statement of Financial Accounting Standards (“FAS”) No. 144, “Accounting for
the Impairment or Disposal of Long-Lived Assets”. FAS No. 144 supersedes FAS No. 121 “Accounting for the
Impairment of Long-Lived Assets and for Long-Lived Assets to be Disposed of” and the accounting and reporting
provisions of Accounting Principles Board Opinion (“APB”) No. 30 “Reporting the results of Operations – Reporting
the Effects of Disposal of a Segment of a Business, and Extraordinary, Unusual and Infrequently Occurring Events
and Transactions” for the disposal of segments of a business. FAS No. 144 addresses financial accounting and
reporting for the impairment or disposal of long-lived assets. FAS No. 144 establishes a single accounting model for
long-lived assets to be disposed of by sale and modifies the accounting and disclosure rules for discontinued
operations. The adoption of the provision of FAS No. 144 did not have a material impact on Sony’s results of
operations and financial position for the year ended March 31, 2003.
Rescission of FASB Statements No. 4, 44 and 64, Amendment of FASB Statement No. 13, and Technical Corrections
In April 2002, the Financial Accounting Standards Board (“FASB”) issued FAS No. 145, “Rescission of FASB
Statements No. 4, 44 and 64, Amendment of FASB Statement No. 13, and Technical Corrections”. This statement
rescinds certain authoritative pronouncements and amends, clarifies or describes the applicability of others, effective
for fiscal years beginning or transactions occurring after May 15, 2002, with early adoption encouraged. Sony elected
early adoption of this statement retroactive to April 1, 2002. The adoption of this statement did not have an impact on
Sony’s results of operations and financial position.
Accounting for Costs Associated with Exit or Disposal Activities
In June 2002, the FASB issued FAS No. 146, “Accounting for Costs Associated with Exit or Disposal Activities”,
which nullifies Emerging Issues Task Force (“EITF”) Issue No. 94-3, “Liability Recognition for Certain Employee
Termination Benefits and Other Costs to Exit an Activity (including Certain Costs Incurred in a Restructuring)”. FAS
No. 146 is effective for exit or disposal activities that are initiated after December 31, 2002. FAS No. 146 addresses
financial accounting and reporting for costs associated with exit or disposal activities. FAS No. 146 requires that a
liability for a cost associated with an exit or disposal activity be recognized and measured initially at fair value only
when the liability is incurred, rather than the date of an entity’s commitment to an exit plan. Sony adopted FAS No.
146 on January 1, 2003. The adoption of this statement did not have a material effect on Sony’s results of operations
and financial position.