Management's Discussion and Analysis of
Financial Condition and Results of Operations
New Accounting Pronouncements
Statement of Financial Accounting Standards (SFAS) No. 143
On January 1, 2003, we will adopt SFAS No. 143, Accounting for Asset Retirement Obligations
(Statement No. 143). Statement No. 143 requires that the fair value of a liability for an asset retirement
obligation be recognized in the period in which it is incurred.We do not expect adoption of Statement
No. 143 to have a material impact on our financial position or results of operations.
SFAS No. 146
On January 1, 2003, we will adopt SFAS No. 146, Accounting for Costs Associated with Exit or
Disposal Activities (Statement No. 146). Statement No. 146 requires the recognition of a liability
for costs associated with an exit or disposal activity at the time the liability is incurred. Previous
accounting standards required liability recognition at the date of an entity's commitment to an exit
plan. Based on current strategic plans, we do not expect adoption of Statement No. 146 to have a
material impact on our financial position or results of operations.
SFAS No. 148
On December 15, 2002, we adopted the disclosure provisions of SFAS No. 148, Accounting for
Stock Based Compensation - Transition and Disclosure (Statement No. 148). Statement No. 148
amends SFAS No. 123, Accounting for Stock Based Compensation (Statement No. 123), to provide
alternative methods of transition for entities that voluntarily change to the fair value based method
of accounting for stock-based employee compensation. It also amends the disclosure provisions of
Statement No. 123 to require prominent and interim disclosures regarding the pro forma effects on
reported net income in regards to stock-based compensation.
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