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Recently Issued Accounting Pronouncements
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6 Months Ended |
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Jun. 27, 2009
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| Recently Issued Accounting Pronouncements [Abstract] | |
| Recently Issued Accounting Pronouncements |
11. Recently Issued Accounting Pronouncements
In May 2008, the FASB issued EITF 07-1, Accounting for
Collaborative Arrangements. EITF Issue 07-1 requires entities
entering into collaborative arrangements in which two or more
parties actively participate in a joint operating activity
and are exposed to significant risks and rewards that depend
on the commercial success of the joint operating activity to
make specific disclosures regarding that arrangement. Garmin
announced a strategic alliance with ASUSTeK Computer Inc. on
February 4, 2009 that will leverage the companies’ navigation
and mobile telephony expertise to design, manufacture and
distribute co-branded location-centric mobile phones. The
mobile phone product line will be known as the Garmin-Asus
nüvifone series. The Company has adopted EITF Issue 07-1 and
the strategic alliance did not have a material impact on the
Company’s financial condition or operating results in the
second quarter of 2009.
In January 2009, the FASB released Proposed Staff Position
SFAS 107-b and Accounting Principles Board (APB) Opinion No.
28-a, “Interim Disclosures about Fair Value of Financial
Instruments” (SFAS 107-b and APB 28-a). This proposal amends
FASB Statement No. 107, “Disclosures about Fair Values of
Financial Instruments,” to require disclosures about fair
value of financial instruments in interim financial
statements as well as in annual financial statements. The
proposal also amends APB Opinion No. 28, “Interim Financial
Reporting,” to require those disclosures in all interim
financial statements. This proposal is effective for interim
periods ending after June 15, 2009, but early adoption is
permitted for interim periods ending after March 15,
2009. The Company has adopted SFAS 107-b and APB 28-a and
the guidance did not have a material impact on the Company’s
financial condition or operating results in the second
quarter of 2009.
In April 2009, the FASB issued FSP No. FAS 157-4 (“FSP FAS
157-4”), “Determining Fair Value When the Volume and Level of
Activity for the Asset or Liability has Significantly
Decreased and Identifying Transactions That Are Not Orderly”
and FSP No. FAS 115-2 and FAS 124-2 (“FSP FAS 115-2”),
“Recognition and Presentation of Other-Than-Temporary
Impairments”. These two FSPs were issued to provide
additional guidance about (1) measuring the fair value of
financial instruments when the markets become inactive and
quoted prices may reflect distressed transactions, and (2)
recording impairment charges on investments in debt
instruments. Additionally, the FASB issued FSP No. FAS 107-1
and APB 28-1 (“FSP FAS 107-1”), “Interim Disclosures about
Fair Value of Financial Instruments,” to require disclosures
of fair value of certain financial instruments in interim
financial statements. The adoption of these FSPs did not
materially impact the Company. These FSPs are effective for
financial statements issued for interim and annual reporting
periods ending after June 15, 2009. The Company has adopted
FSP FAS 157-4 and the guidance did not have a material impact
on the Company’s financial condition or operating results in
the second quarter of 2009.
In May 2009, the FASB issued SFAS No. 165, “Subsequent
Events” (“SFAS 165”). SFAS 165 establishes general standards
of accounting for and disclosure of events that occur after
the balance sheet date but before financial statements are
issued or are available to be issued. SFAS 165 is effective
for interim or annual financial periods ending after June 15,
2009. The Company adopted the provisions of SFAS 165 for the
quarter ended June 27, 2009. The adoption of this provision
did not have a material effect on our financial
statements.
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