Symantec 2008 Annual Report Download - page 161

Newly Adopted and Recently Issued Accounting Pronouncements
In May 2008, the FASB issued SFAS No. 162, The Hierarchy of Generally Accepted Accounting Principles.
SFAS No. 162 defines the order in which accounting principles that are generally accepted should be followed.
SFAS No. 162 is effective 60 days following the SEC’s approval of the Public Company Accounting Oversight
Board (“PCAOB”) amendments to AU Section 411, The Meaning of Present Fairly in Conformity with Generally
Accepted Accounting Principles. We do not expect the adoption of SFAS No. 162 to have a material impact on our
consolidated financial statements.
In April 2008, the FASB finalized Staff Position (“FSP”) No. 142-3, Determination of the Useful Life of
Intangible Assets. The position amends the factors that should be considered in developing renewal or extension
assumptions used to determine the useful life of a recognized intangible asset under FASB Statement of Financial
Accounting Standard (“SFAS”) No. 142, Goodwill and Other Intangible Assets. The position applies to intangible
assets that are acquired individually or with a group of other assets and both intangible assets acquired in business
combinations and asset acquisitions. FSP 142-3 is effective for fiscal years beginning after December 15, 2008, and
interim periods within those fiscal years. We are currently evaluating the impact of the pending adoption of
FSP 142-3 on our consolidated financial statements.
In March 2008, the FASB issued SFAS No. 161, Disclosures about Derivative Instruments and Hedging
Activities an amendment of FASB Statement No. 133. SFAS No. 161 requires disclosures of how and why an entity
uses derivative instruments, how derivative instruments and related hedged items are accounted for and how
derivative instruments and related hedged items affect an entity’s financial position, financial performance, and
cash flows. SFAS No. 161 is effective for fiscal years beginning after November 15, 2008, with early adoption
permitted. We are currently evaluating the impact of the pending adoption of SFAS No. 161 on our consolidated
financial statements.
In December 2007, the FASB issued SFAS No. 160, Noncontrolling Interests in Consolidated Financial
Statements, an amendment of ARB No. 51. The standard changes the accounting for noncontrolling (minority)
interests in consolidated financial statements including the requirements to classify noncontrolling interests as a
component of consolidated stockholders’ equity, to identify earnings attributable to noncontrolling interests
reported as part of consolidated earnings, and to measure gain or loss on the deconsolidated subsidiary using
fair value of noncontrolling equity investment. Additionally, SFAS No. 160 revises the accounting for both
increases and decreases in a parent’s controlling ownership interest. SFAS No. 160 is effective for fiscal years
beginning after December 15, 2008, with early adoption prohibited. We do not expect the adoption of SFAS No. 160
to have a material impact on our consolidated financial statements.
In December 2007, the FASB issued SFAS No. 141 (revised “R”), Business Combinations. This standard
changes the accounting for business combinations by requiring that an acquiring entity measures and recognizes
identifiable assets acquired and liabilities assumed at the acquisition date fair value with limited exceptions. The
changes include the treatment of acquisition related transaction costs, the valuation of any noncontrolling interest at
acquisition date fair value, the recording of acquired contingent liabilities at acquisition date fair value and the
subsequent re-measurement of such liabilities after acquisition date, the recognition of capitalized in-process
research and development, the accounting for acquisition-related restructuring cost accruals subsequent to acqui-
sition date, and the recognition of changes in the acquirer’s income tax valuation allowance. SFAS No. 141(R) is
effective for fiscal years beginning after December 15, 2008, with early adoption prohibited. We are currently
evaluating the impact of the pending adoption of SFAS No. 141(R) on our consolidated financial statements. The
accounting treatment related to pre-acquisition uncertain tax positions will change when SFAS No. 141(R) becomes
effective, which will be in first quarter of our fiscal year 2010. At such time, any changes to the recognition or
measurement of uncertain tax positions related to pre-acquisition periods will be recorded through income tax
expense, where currently the accounting treatment would require any adjustment to be recognized through the
purchase price. See Note 17 for further details.
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SYMANTEC CORPORATION
Notes to Consolidated Financial Statements — (Continued)