Sony 2005 Annual Report Download - page 71

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68 Sony Corporation
currently evaluating the impact of adopting this new pronounce-
ment. However, Sony expects that the total expenses to be
recorded in the future periods will be consistent with the pro
forma information in Note 2(2) of Notes to the Consolidated
Financial Statements—Stock-based compensation.
■INVENTORY COSTS
In November 2004, the FASB issued FAS No. 151, “Inventory
Costs, an amendment of Accounting Research Bulletin (“ARB”)
No. 43, Chapter 4”. This statement requires certain abnormal
expenditures to be recognized as expenses in the current
period. It also requires that the amount of fixed production
overhead allocated to inventory be based on the normal
capacity of the production facilities. This statement shall be
effective for fiscal years beginning after June 15, 2005, with early
adoption encouraged during the fiscal years beginning after the
date this statement is issued. The adoption of FAS No. 151 is
not expected to have a material impact on Sony’s results of
operations and financial position.
■EXCHANGES OF NONMONETARY ASSETS
In December 2004, the FASB issued FAS No. 153, “Exchanges
of Nonmonetary Assets, an amendment of APB Opinion No.
29.” This statement requires that exchanges of productive
assets be accounted for at fair value unless fair value cannot
be reasonably determined or the transaction lacks commercial
substance. This statement shall be effective for nonmonetary
asset exchanges occurring in the fiscal periods beginning after
June 15, 2005, with early adoption during the fiscal periods
beginning after the date this statement is issued encouraged.
Sony is currently evaluating the impact of adopting this new
pronouncement.
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