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87
■ 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. The fair value measurement
election is irrevocable and subsequent changes in fair value
must be recorded in earnings. FAS No. 159 is required to be
adopted by Sony in the first quarter beginning April 1, 2008.
The adoption of FAS No. 159 is not expected to have a
material impact on Sony’s consolidated results of operations
and financial position. However, its effects on future periods
will depend on the nature of instruments held by Sony and its
elections under the provisions of FAS No. 159.
■ BUSINESS COMBINATIONS
In December 2007, the FASB issued FAS No. 141(R), “Business
Combinations,” which applies prospectively to business combi-
nations for which the acquisition date is on or after the beginning
of the first fiscal year beginning on or after December 15, 2008.
FAS No. 141(R) requires that the acquisition method of account-
ing be applied to a broader range of business combinations,
amends the definition of a business combination, provides a
definition of a business, requires an acquirer to recognize an
acquired business at its fair value at the acquisition date and
requires the assets and liabilities assumed in a business combi-
nation to be measured and recognized at their fair values as of
the acquisition date, with limited exceptions. Sony will adopt
FAS No. 141(R) as of April 1, 2009, and its effects on future
periods will depend on the nature and significance of any
acquisitions subject to FAS No. 141(R).
■ NONCONTROLLING INTERESTS IN CONSOLIDATED
FINANCIAL STATEMENTS
In December 2007, the FASB issued FAS No. 160, “Non-
controlling Interests in consolidated financial statements—
an amendment of ARB No. 51.” FAS No. 160 requires that
the noncontrolling interest in the equity of a subsidiary be
accounted for and reported as equity, provides revised guid-
ance on the treatment of net income and losses attributable
to the noncontrolling interest and changes in ownership
interests in a subsidiary and requires additional disclosures
that identify and distinguish between the interests of the
controlling and noncontrolling owners. Pursuant to the tran-
sition provisions of FAS No. 160, Sony will adopt the state-
ment as of April 1, 2009, via retrospective application of the
presentation and disclosure requirements. Sony is currently
evaluating the impact of adopting FAS No. 160.
■ DISCLOSURES ABOUT DERIVATIVE INSTRUMENTS AND
HEDGING ACTIVITIES
In March 2008, the FASB issued FAS No. 161, “Disclosures
about Derivative Instruments and Hedging Activities—an
amendment of FASB Statement No. 133.” FAS No. 161 amends
and expands the disclosures required by FAS No. 133 to
provide more information about how and why an entity uses
derivative instruments, how derivative instruments and related
hedged items are accounted for under FAS No. 133 and its
interpretations, and how derivative instruments and related
hedged items affect an entity’s financial position, financial
performance, and cash flows. FAS No. 161 is effective for
financial statements issued for fiscal years and interim periods
beginning after November 15, 2008. Sony is currently evaluating
the additional disclosures required by FAS No. 161.
■ THE HIERARCHY OF GENERALLY ACCEPTED
ACCOUNTING PRINCIPLES
In May 2008, the FASB issued FAS No. 162, “The Hierarchy
of Generally Accepted Accounting Principles.” FAS No. 162
identifies the sources of accounting principles and the frame-
work for selecting the principles used in the preparation of
financial statements of nongovernmental entities that are pre-
sented in conformity with generally accepted accounting
principles.
FAS No. 162 will be effective 60 days following the SEC’s
approval of the Public Company Accounting Oversight Board
amendments to AU Section 411. Sony is currently evaluating
the impact of adopting FAS No. 162.
■ FINANCIAL GUARANTEE INSURANCE CONTRACTS
In May 2008, the FASB issued FAS No. 163, “Accounting for
Financial Guarantee Insurance Contracts.” FAS No. 163
clarifies how FAS No. 60, “Accounting and Reporting by
Insurance Enterprises”, applies to financial guarantee insur-
ance contracts issued by insurance enterprises, including the
recognition and measurement of premium revenue and claim
liabilities. It also requires expanded disclosures about financial
guarantee insurance contracts. FAS No. 163 will be effective
for Sony as of April 1, 2009, except for disclosures about the
insurance enterprise’s risk-management activities. Disclosures
about the insurance enterprise’s risk-management activities
will be effective the first period beginning after issuance of
FAS No. 163. Sony is currently evaluating the impact of
adopting FAS No. 163.