Sony 2003 Annual Report Download - page 160

Consolidated Financial Information 2003
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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.
Guarantor’s Accounting and Disclosure Requirements for Guarantees, Including Indirect
Guarantees of Indebtedness of Others -
In November 2002, the FASB issued FASB Interpretation (“FIN”) No. 45, “Guarantor’s Accounting and
Disclosure Requirements for Guarantees, Including Indirect Guarantees of Indebtedness of Others, an
interpretation of FASB Statements No. 5, 57, and 107 and rescission of FASB Interpretation No. 34”. The
interpretation elaborates on the existing disclosure requirements for most guarantees. It also clarifies that
at the time a company issues a guarantee, the company must recognize an initial liability for the fair value of
the obligations it assumes under the guarantee. The provisions related to recognizing a liability at inception
of the guarantee for the fair value of the guarantor’s obligations do not apply to product warranties or to