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In January 2003, the FASB issued Interpretation No. 46, “Consolidation
of Variable Interest Entities.” This interpretation defines
when a business enterprise must consolidate a variable interest
entity. This interpretation applies immediately to variable
interest entities created after January 31, 2003. It applies
in the first fiscal year or interim period beginning after June
15, 2003, to entities in which an enterprise holds a variable
interest that it acquired before February 1, 2003. It is not
deemed reasonably possible that the adoption of this statement
will have a material effect on the Company’s financial
position or results of operations.
In December 2002, the FASB issued Statement of Financial Accounting
Standards No.148, “Accounting for Stock-Based Compensation
– Transition and Disclosure” (“SFAS 148”)
which amends FASB Statement No. 123. This statement provides
alternative methods of transition for a voluntary change to
the fair value-based method of accounting for stock-based employee
compensation and amends the disclosure requirements of FASB
Statement No. 123. The transition guidance and annual disclosure
provisions are effective for fiscal years ending after December
15, 2002. The interim disclosure provisions are effective for
financial reports containing financial statements for interim
periods beginning after December 15, 2003. The Company will
include the required interim disclosure provisions in its financial
statements for the quarter ending March 31, 2003. The adoption
of this statement will not have a material effect on the Company’s
financial position or results of operations.
In November 2002, the FASB issued Interpretation No. 45, “Guarantor’s
Accounting and Disclosure Requirements for Guarantees, Including
Indirect Guarantees of Indebtedness of Others.” This interpretation
requires a guarantor to recognize, at the inception of the guarantee,
a liability for the fair value of the obligation undertaken
in issuing the guarantee. It also enhances guarantor’s
disclosure requirements to be made in its interim and annual
financial statements about its obligations under certain guarantees
it has issued. The initial recognition and initial measurement
provisions of this interpretation are applicable on a prospective
basis to guarantees issued or modified after December 31, 2002.
The disclosure requirements are effective for financial statements
of interim or annual periods ending after December 15, 2002.
In the normal course of business, the Company does not issue
guarantees to third parties; accordingly, this interpretation
will not affect the Company’s financial position or results
of operations.
In November 2002, the Emerging Issues Task Force issued EITF
Issue No. 00-21, “Accounting for Revenue Arrangements
with Multiple Deliverables,” (“EITF 00-21”)
effective for arrangements entered into after June 15, 2003.
EITF 00-21 defines units of accounting for arrangements with
multiple deliverables resulting in revenue being allocated over
the units of accounting for revenue recognition purposes. The
adoption of this statement is not anticipated to have a material
effect on the Company’s financial position or results
of operations.
In July 2002, the FASB issued Statement of Financial Accounting
Standards No. 146, “Accounting for Exit or Disposal Activities”
(“SFAS 146”). SFAS 146 requires the recognition
of a liability for costs associated with an exit plan or disposal
activity when incurred and nullifies Emerging Issues Task Force
(EITF) Issue 94-3, “Liability Recognition for Certain
Employee Termination Benefits and Other Costs to Exit an Activity
(including Certain Costs Incurred in a Restructuring),”
which allowed recognition at the date of an entity’s commitment
to an exit plan. The provisions of this statement are effective
for exit or disposal activities that are initiated by the Company
after December 31, 2002. The adoption of this statement is not
anticipated to have a material effect on the Company’s
financial position or results of operations.
In June 2001, the FASB issued Statement of Financial Accounting
Standards No. 143, “Accounting for Asset Retirement Obligations,”
effective for fiscal years beginning after June 15, 2002. This
statement addresses the diverse accounting practices for obligations
associated with the retirement of tangible long-lived assets
and the associated asset retirement costs. The adoption of this
statement will not have a material effect on the Company’s
financial position or results of operations. |
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