Intel 2010 Annual Report Download - page 84

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Table of Contents
INTEL CORPORATION
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued)
In the first quarter of 2008, amended views of the U.S. Securities and Exchange Commission (SEC) on the use of the
simplified method in developing estimates of the expected lives of share options became effective for us. The amendment, in
part, allowed the continued use, subject to specific criteria, of the simplified method in estimating the expected lives of share
options granted after December 31, 2007. We will continue to use the simplified method until we have the historical data
necessary to provide reasonable estimates of expected lives.
In the fourth quarter of 2008, we adopted new standards that clarified the application of fair value in a market that is not
active, and addressed application issues such as the use of internal assumptions when relevant observable data does not exist,
the use of observable market information when the market is not active, and the use of market quotes when assessing the
relevance of observable and unobservable data. The adoption of these new standards did not have a significant impact on our
consolidated financial statements or the fair values of our financial assets and liabilities.
Note 4: Recent Accounting Standards
In January 2010, the Financial Accounting Standards Board (FASB) issued amended standards that require additional fair
value disclosures. These amended standards require disclosures about inputs and valuation techniques used to measure fair
value, as well as disclosures about significant transfers, beginning in the first quarter of 2010. Additionally, these amended
standards require presentation of disaggregated activity within the reconciliation for fair value measurements using significant
unobservable inputs (Level 3), beginning in the first quarter of 2011.
In October 2009, the FASB issued new standards for revenue recognition with multiple deliverables. These new standards
impact the determination of when the individual deliverables included in a multiple-element arrangement may be treated as
separate units of accounting. Additionally, these new standards modify the manner in which the transaction consideration is
allocated across the separately identified deliverables by no longer permitting the residual method of allocating arrangement
consideration. These new standards are required to be adopted in the first quarter of 2011. We do not expect these new
standards to significantly impact our consolidated financial statements.
In October 2009, the FASB issued new standards for the accounting for certain revenue arrangements that include software
elements. These new standards amend the scope of pre-existing software revenue guidance by removing from the guidance
non-software components of tangible products and certain software components of tangible products. These new standards are
required to be adopted in the first quarter of 2011. We do not expect these new standards to significantly impact our
consolidated financial statements.
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