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96
on derecognition, classification, interest and penalties, account-
ing in interim periods, disclosure, and transition. This statement
will be effective for Sony as of April 1, 2007. Sony is currently
evaluating the potential cumulative impact of FIN No. 48 on the
consolidated financial statements, and the final evaluation is
expected to result in a charge to beginning retained earnings
and an increase in tax liabilities.
■HOW TAXES COLLECTED FROM CUSTOMERS AND
REMITTED TO GOVERNMENTAL AUTHORITIES SHOULD
BE PRESENTED IN THE INCOME STATEMENT
In June 2006, the Emerging Issues Task Force (“EITF”) issued
EITF Issue No. 06-3, “How Taxes Collected from Customers
and Remitted to Governmental Authorities Should be Presented
in the Income Statement.” EITF Issue No. 06-3 requires disclo-
sure of the accounting policy for any tax assessed by a govern-
mental authority that is imposed concurrently on a specific
revenue-producing transaction between a seller and a customer.
EITF Issue No. 06-3 should be applied to financial reports for
interim and annual reporting periods beginning after December
15, 2006. This statement will be effective for Sony as of April 1,
2007. Although Sony is currently evaluating the impact of
adopting this new pronouncement, the adoption of EITF Issue
No. 06-3 is not expected to have a material impact on Sony’s
results of operations and financial position.
■FAIR VALUE MEASUREMENTS
In September 2006, the FASB issued FAS No. 157, “Fair Value
Measurements.” FAS No. 157 establishes a framework for
measuring fair value, clarifies the definition of fair value, and
expands disclosures about the use of fair value measurements.
FAS No. 157 applies under other accounting pronouncements that
require or permit fair value measurements and does not require
any new fair value measurements. FAS No. 157 will be effective
for Sony beginning April 1, 2008. Sony is currently assessing the
potential effect of FAS No. 157 on the financial statements.
■FAIR VALUE OPTION FOR FINANCIAL ASSETS AND
FINANCIAL LIABILITIES
In February 2007, the FASB issued FAS No. 159, “The Fair Value
Option for Financial Assets and Financial Liabilities.” FAS No. 159
permits companies to choose to measure, on an instrument-by-
instrument basis, financial instruments and certain other items at
fair value that are not currently required to be measured at fair
value. Sony is currently evaluating whether to elect the option
provided for in this statement. If elected, FAS No. 159 would be
effective for Sony as of April 1, 2008.