Kodak 2009 Annual Report Download - page 69

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In March 2008, the FASB issued authoritative guidance amending and expanding the disclosure requirements for derivative
instruments and hedging activities, with the intent to provide users of financial statements with an enhanced understanding 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 statements. This guidance, which was incorporated into
ASC Topic 815, “Derivatives and Hedging,” was adopted by the Company as of January 1, 2009. See Note 12, “Financial
Instruments,” in the Notes to Financial Statements for the required disclosures.
In December 2007, the FASB issued authoritative guidance establishing accounting and reporting standards for ownership interests
in subsidiaries held by parties other than the parent. Specifically, this guidance requires the presentation of noncontrolling interests
as equity in the Consolidated Statement of Financial Position, and separate identification and presentation in the Consolidated
Statement of Operations of net income attributable to the entity and the noncontrolling interest. This guidance, which was
incorporated into ASC Topic 810, “Consolidation,” was adopted by the Company as of January 1, 2009, and, as required, was
applied retrospectively to the prior period’s financial statements. This guidance also established accounting and reporting standards
regarding deconsolidation and changes in a parent’s ownership interest, which will be applied prospectively to any such transactions
in 2009 onward. The adoption did not have a material impact on the Company’s Consolidated Financial Statements.
In December 2007, the FASB issued revised authoritative guidance related to business combinations, which provides for recognition
and measurement of identifiable assets and goodwill acquired, liabilities assumed, and any noncontrolling interest in the acquiree at
fair value. The guidance also established disclosure requirements to enable the evaluation of the nature and financial effects of a
business combination. This guidance, which was incorporated into ASC Topic 805, “Business Combinations,” was adopted by the
Company as of January 1, 2009, and the adoption did not have a material impact on the Company’s Consolidated Financial
Statements.
In September 2006, the FASB issued authoritative guidance establishing a comprehensive framework for measuring fair value and
expanding disclosures about fair value measurements. Specifically, this guidance sets forth a definition of fair value, and establishes
a hierarchy prioritizing the inputs to valuation techniques, giving the highest priority to quoted prices in active markets for identical
assets and liabilities and the lowest priority to unobservable inputs. The levels within the hierarchy are defined as follows:
• Level 1 inputs are quoted prices (unadjusted) in active markets for identical assets or liabilities that the reporting entity has the
ability to access at the measurement date.
• Level 2 inputs are inputs, other than quoted prices included within Level 1, which are observable for the asset or liability, either
directly or indirectly.
• Level 3 inputs are unobservable inputs.
This guidance, which was incorporated into ASC Topic 820, “Fair Value Measurements and Disclosures,” was adopted by the
Company for financial assets and liabilities as of January 1, 2008, and for nonfinancial assets and liabilities (that are not recognized
or disclosed at fair value in the financial statements on a recurring basis) as of January 1, 2009. There was no significant impact on
the Company’s Consolidated Financial Statements as a result of these adoptions. For details on the levels at which the Company’s
financial assets and liabilities are classified within the fair value hierarchy, see Note 12, “Financial Instruments,” in the Notes to
Financial Statements.
The FASB has subsequently issued additional clarifying guidance related to fair value, including:
• In October 2008, the FASB issued additional clarifying guidance related to determination of the fair value of a financial asset in a
market that is not active. This guidance was effective as of December 31, 2008 for the Company.
• In September 2009, the FASB issued ASU No. 2009-12, "Investments in Certain Entities That Calculate Net Asset Value per
Share (or Its Equivalent).” The changes to the ASC as a result of this update were effective as of October 1, 2009 for the
Company.
• In August 2009, the FASB issued ASU No. 2009-05, "Measuring Liabilities at Fair Value.” The changes to the ASC as a result of
this update were effective October 1, 2009 for the Company.
The adoption of this additional clarifying guidance did not have any significant impact on the Company’s Consolidated Financial
Statements.