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These excerpts taken from the ARDNA 10-K filed Mar 16, 2009. Recent Accounting Standards
In September 2006, the Financial Accounting Standards Board (FASB) issued SFAS 157, “Fair Value Measurements.” SFAS 157 defines fair value, establishes a framework for measuring fair value in GAAP and expands disclosures about fair value measurements. SFAS 157 does not require any new fair value measurements. The adoption of SFAS 157 in the first quarter of 2008 did not have any impact on the Company’s consolidated financial statements. In February 2008, the FASB issued FASB Staff Position No. (FSP) FAS 157-2, “Effective Date of FASB Statement No. 157,” which is effective for specified fair value measures of nonfinancial assets and liabilities for financial statements issued for fiscal years beginning after November 15, 2008. FSP FAS 157-2 is effective for the Company’s first quarter of 2009. The Company is currently evaluating the impact, if any, that the implementation of these provisions may have on its consolidated financial statements.
In February 2007, the FASB issued SFAS 159, “The Fair Value Option for Financial Assets and Financial Liabilities Including an Amendment of FASB Statement No. 115.” SFAS 159 permits entities to make an irrevocable election to measure certain financial instruments and other assets and liabilities at fair value on an instrument-by-instrument basis. Unrealized gains and losses on items for which the fair value option has been elected will be recognized into net earnings at each subsequent reporting date. Upon adoption of SFAS 159 in the first quarter of 2008, the Company did not elect the fair value option and, accordingly, its adoption did not have any effect on the Company’s consolidated financial statements.
Item 7A. Quantitative and Qualitative Disclosures about Market Risks
The Company currently has no outstanding bank debt or fixture financing. If the Company should obtain financing or draw on its existing lines of credit, which bear interest at the bank’s reference rate or at the bank’s adjusted London Interbank Offer Rate (LIBOR) plus a margin up to 1.2%, the Company could then be exposed to market risk related to interest fluctuations.
A change in market prices exposes the Company to market risk related to its investments. As of January 3, 2009, all investments were classified as available-for-sale securities and totaled $8,658,000. A hypothetical 10% drop in the market value of these investments would result in a $866,000 unrealized loss and a corresponding decrease in the fair value of these instruments. This hypothetical drop would not affect cash flow and would not have an impact on earnings until the Company sold the investments.
Item 8. Financial Statements and Supplementary Data
See Index to Consolidated Financial Statements.
Item 9. Changes in and Disagreements with Accountants on Accounting and Financial Disclosure
None.
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Item 9A. Controls and Procedures
Evaluation of Disclosure Controls and Procedures
An evaluation was carried out by the Company’s Chief Executive Officer and the person temporarily performing the functions of the Chief Financial Officer of the effectiveness of the Company’s disclosure controls and procedures (as defined in Rules 13a-15(e) and 15d-15(e) under the Securities Exchange Act of 1934) as of January 3, 2009. Based upon that evaluation, the Chief Executive Officer and the person temporarily performing the functions of the Chief Financial Officer concluded that these disclosure controls and procedures were effective.
Changes in Internal Control over Financial Reporting
Management, with the participation of the Chief Executive Officer and the person temporarily performing the functions of the Chief Financial Officer of the Company, has evaluated any changes in the Company’s internal control over financial reporting that occurred during the most recent fiscal quarter. Based on that evaluation, management, the Chief Executive Officer and the person temporarily performing the functions of the Chief Financial Officer of the Company have concluded that there has been no change in the Company’s internal control over financial reporting during the Company’s fiscal quarter ended January 3, 2009 that has materially affected, or is reasonably likely to materially affect, the Company’s internal control over financial reporting.
None
26 Recent Accounting Standards
In
In
Item 7A. Quantitative and
The Company currently has no outstanding bank debt or fixture
A change in market prices exposes the Company to market risk related to
Item 8. Financial Statements and Supplementary
See Index to
Item 9. Changes in and Disagreements with Accountants
None.
25
Item 9A. Controls and Procedures
Evaluation
An
Changes
Management, with the participation of the Chief
None
26 These excerpts taken from the ARDNA 10-K filed Mar 7, 2008. Recent Accounting Standards
In June 2006, the Financial Accounting Standards Board (FASB) ratified the consensus of Emerging Issues Task Force (EITF) No. 06-3, “How Taxes Collected from Customers and Remitted to Governmental Authorities Should Be Presented in the Income Statement (That Is, Gross versus Net Presentation).” EITF No. 06-3 indicates that the income statement presentation on either a gross basis or a net basis of the taxes within the scope of the issue is an accounting policy decision. The Company’s accounting policy is to present the taxes within the scope of EITF No. 06-3 on a net basis. The adoption of EITF No. 06-3 in the first quarter of 2007 did not result in a change to the Company’s accounting policy and, accordingly, did not have any effect on the Company’s consolidated financial statements.
In June 2006, the FASB issued FIN 48, “Accounting for Uncertainty in Income Taxes — an Interpretation of FASB Statement No. 109.” This interpretation prescribes a recognition threshold and measurement attribute for the financial statement recognition and measurement of a tax position taken or expected to be taken in a tax return, and provides guidance on derecognition, classification, interest and penalties, accounting in interim periods, disclosure and
23
transition. This interpretation, which was effective for the Company on the first day of its 2007 fiscal year, did not have a significant impact on the Company’s consolidated financial statements.
In September 2006, the FASB issued SFAS 157, “Fair Value Measurements.” SFAS 157 defines fair value, establishes a framework for measuring fair value in GAAP and expands disclosures about fair value measurements. SFAS 157 does not require any new fair value measurements. This statement is effective for financial statements issued for the Company’s first quarter of 2008 and is not expected to have a significant impact on the Company’s consolidated financial statements.
In February 2007, the FASB issued SFAS 159, “The Fair Value Option for Financial Assets and Financial Liabilities Including an Amendment of FASB Statement No. 115.” SFAS 159 permits entities to make an irrevocable election to measure certain financial instruments and other assets and liabilities at fair value on an instrument-by-instrument basis. Unrealized gains and losses on items for which the fair value option has been elected will be included in net earnings at each subsequent reporting date. SFAS 159 will be effective at the beginning of the Company’s fiscal year 2008 and is not expected to have a significant impact on the Company’s consolidated financial statements.
Item 7A. Quantitative and Qualitative Disclosures about Market Risks
The Company currently has no outstanding bank debt or fixture financing. If the Company should obtain financing or draw on its existing lines of credit, which bear interest at the bank’s reference rate or at the bank’s adjusted London Interbank Offer Rate (LIBOR) plus a margin up to 1.2%, the Company could then be exposed to market risk related to interest fluctuations.
A change in market prices exposes the Company to market risk related to its investments. As of December 29, 2007, all investments were classified as available-for-sale securities and totaled $19,933,000. A hypothetical 10% drop in the market value of these investments would result in a $1,993,000 unrealized loss and a corresponding decrease in the fair value of these instruments. This hypothetical drop would not affect cash flow and would not have an impact on earnings until the Company sold the investments.
Item 8. Financial Statements and Supplementary Data
See Index to Consolidated Financial Statements.
Item 9. Changes in and Disagreements with Accountants on Accounting and Financial Disclosure
None.
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Item 9A. Controls and Procedures
Evaluation of Disclosure Controls and Procedures
An evaluation was carried out by the Company’s Chief Executive Officer and the person temporarily performing the functions of the Chief Financial Officer of the effectiveness of the Company’s disclosure controls and procedures (as defined in Rules 13a-15(e) and 15d-15(e) under the Securities Exchange Act of 1934) as of December 29, 2007. Based upon that evaluation, the Chief Executive Officer and the person temporarily performing the functions of the Chief Financial Officer concluded that these disclosure controls and procedures were effective.
Changes in Internal Control over Financial Reporting
Management, with the participation of the Chief Executive Officer and the person temporarily performing the functions of the Chief Financial Officer of the Company, has evaluated any changes in the Company’s internal control over financial reporting that occurred during the most recent fiscal quarter. Based on that evaluation, management, the Chief Executive Officer and the person temporarily performing the functions of the Chief Financial Officer of the Company have concluded that there has been no change in the Company’s internal control over financial reporting during the Company’s fiscal quarter ended December 29, 2007 that has materially affected, or is reasonably likely to materially affect, the Company’s internal control over financial reporting.
Recent Accounting Standards
In
In
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transition. This interpretation, which was effective for
In
In
Item 7A. Quantitative and Qualitative Disclosures about Market
The Company currently has no outstanding bank debt or fixture
A change in market prices exposes the Company to market risk related to
Item 8. Financial Statements and Supplementary
See Index to
Item 9. Changes in and
None.
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Item 9A. Controls and
Evaluation
An
Changes
Management, with the participation of the Chief
This excerpt taken from the ARDNA 10-K filed Mar 13, 2007. Recent Accounting Standards In March 2004, the Emerging Issues Task Force (EITF) amended and ratified previous consensus on EITF No. 03-1, “The Meaning of Other-Than-Temporary Impairment and its Application to Certain Issues.” EITF No. 03-1 establishes guidance to be used in determining when an investment is considered impaired, whether that impairment is other-than-temporary and the measurement of an impairment loss. The effective date was originally the Company’s third quarter of 2004. In September 2004, the Financial Accounting Standards Board (FASB) issued EITF No. 03-1-1, “Effective Date of Paragraphs 10-20 of EITF 03-1,” to delay the effective date pending further discussions by the EITF. In November 2005, the FASB issued FASB Staff Position (FSP) Nos. FAS 115-1 and FAS 124-1, “The Meaning of Other-Than-Temporary Impairment and its Application to Certain Investments,” which addresses the determination as to when an investment is considered impaired, whether that impairment is other-than-temporary and the measurement of an impairment loss. This FSP also includes accounting considerations subsequent to the recognition of an other-than-temporary impairment and requires certain disclosures about unrealized losses that have not been recognized as other-than-temporary impairments. This pronouncement was effective beginning with the Company’s first quarter of 2006. The Company does not currently have any unrealized investment losses that are other-than-temporary and, therefore, adoption of this standard on January 1, 2006 did not have an impact on the Company’s consolidated financial statements. In November 2004, the FASB issued SFAS 151, “Inventory Costs - an amendment of ARB No. 43, Chapter 4.” SFAS 151 clarifies that inventory costs that are “abnormal” are required to be charged to expense as incurred as opposed to being capitalized into inventory as a product cost. SFAS 151 provides examples of “abnormal” costs including costs of idle facilities, excess freight and handling costs and spoilage. SFAS 151 was effective for the Company’s fiscal year beginning January 1, 2006. Adoption of this standard did not have an impact on the Company’s consolidated financial statements. In December 2004, the FASB issued SFAS 123(R) (revised 2004), “Share-Based Payment.” This statement eliminated the ability to account for share-based compensation transactions using APB 25, “Accounting for Stock Issued to Employees,” and requires instead that compensation expense be recognized based on the fair value on the date of grant and at each remeasurement date for cash-settled SARs which are accounted for as liabilities. The adoption of SFAS 123(R) impacted the Company’s consolidated financial statements as discussed previously under the heading “2006 Compared to 2005.” In October 2005, the FASB issued FSP FAS 13-1, “Accounting for Rental Costs Incurred during a Construction Period.” FSP FAS 13-1 clarifies that rental costs associated with ground or building operating leases that are incurred during a construction period should be recognized as rental expense. This statement was effective with the Company’s first quarter of 2006. Adoption of this standard did not have an impact on the Company’s consolidated financial statements. 25 In June 2006, the FASB ratified the consensus of EITF No. 06-3, “How Taxes Collected from Customers and Remitted to Governmental Authorities Should Be Presented in the Income Statement (That Is, Gross versus Net Presentation).” EITF No. 06-3 indicates that the income statement presentation on either a gross basis or a net basis of the taxes within the scope of the issue is an accounting policy decision. The Company’s accounting policy is to present the taxes within the scope of EITF No. 06-3 on a net basis. The adoption of EITF No. 06-3 in the first quarter of 2007 will not result in a change to the Company’s accounting policy and, accordingly, will not have a material effect on the Company’s consolidated financial statements. In June 2006, the FASB issued FIN 48, “Accounting for Uncertainty in Income Taxes — an interpretation of FASB Statement No. 109.” This interpretation prescribes a recognition threshold and measurement attribute for the financial statement recognition and measurement of a tax position taken or expected to be taken in a tax return, and provides guidance on derecognition, classification, interest and penalties, accounting in interim periods, disclosure and transition. This interpretation, which is effective for fiscal years beginning after December 15, 2006, is not expected to have a significant impact on the Company’s consolidated financial statements. Item 7A. Quantitative and Qualitative Disclosures about Market Risks The Company currently has no outstanding bank debt or fixture financing. If the Company should obtain financing or draw on its existing lines of credit, which bear interest at the bank’s reference rate or the bank’s adjusted London Interbank Offer Rate (LIBOR) plus a margin up to 1.2%, the Company could then be exposed to market risk related to interest fluctuations. A change in market prices exposes the Company to market risk related to its investments. As of December 30, 2006, all investments were classified as available-for-sale securities and totaled $18,667,000. A hypothetical 10% drop in the market value of these investments would result in a $1,867,000 unrealized loss and a corresponding decrease in the fair value of these instruments. This hypothetical drop would not affect cash flow and would not have an impact on earnings until the Company sold the investments. Item 8. Financial Statements and Supplementary Data See Index to Consolidated Financial Statements. Item 9. Changes in and Disagreements with Accountants on Accounting and Financial Disclosure The Company filed a current report on Form 8-K on March 31, 2006, to report a change in the Company’s certifying accountant from PricewaterhouseCoopers LLP (PwC) to Moss Adams LLP (Moss). There were no disagreements with accountants. 26 This excerpt taken from the ARDNA 10-K filed Mar 9, 2006. Recent Accounting Standards
In March 2004, the EITF amended and ratified previous consensus on EITF No. 03-1, “The Meaning of Other-Than-Temporary Impairment and its Application to Certain Issues.” EITF No. 03-1 establishes guidance to be used in determining when an investment is considered impaired, whether that impairment is other-than-temporary and the measurement of an impairment loss. The effective date was originally the Company’s third quarter of 2004. In September 2004, the Financial Accounting Standards Board (FASB) issued EITF No. 03-1-1, “Effective Date of Paragraphs 10-20 of EITF 03-1,” to delay the effective date pending further discussions by the EITF. In November 2005, the FASB issued FASB Staff Position (FSP) Nos. FAS 115-1 and FAS 124-1, “The Meaning of Other-Than-Temporary Impairment and its Application to Certain Investments,” which addresses the determination as to when an investment is considered impaired, whether that impairment is other-than-temporary and the measurement of an impairment loss. This FSP also includes accounting considerations subsequent to the recognition of an other-than-temporary impairment and requires certain disclosures about unrealized losses that have not been recognized as other-than-temporary impairments. This pronouncement is effective beginning with the Company’s first quarter of 2006. The Company does not currently have any other-than-temporary impairment, and therefore, adoption of this standard on January 1, 2006 will not have a significant impact on the Company’s consolidated financial statements.
In November 2004, the FASB issued SFAS 151, “Inventory Costs - an amendment of ARB No. 43, Chapter 4.” SFAS 151 clarifies that inventory costs that are “abnormal” are required to be charged to expense as incurred as opposed to being capitalized into inventory as a product cost. SFAS 151 provides examples of “abnormal” costs including costs of idle facilities, excess freight and handling costs and spoilage. SFAS 151 is effective for the Company’s fiscal year beginning January 1, 2006. Adoption of this standard will not have an impact on the Company’s consolidated financial statements.
In December 2004, the FASB issued SFAS 123R (revised 2004), “Share-Based Payment,” which will be effective in the first quarter of fiscal 2006. This statement will eliminate the ability to account for share-based compensation transactions using APB 25, “Accounting for Stock Issued to Employees.” Under the provisions of SFAS 123R, the Company’s SARs will be accounted for as a liability award with the fair value of SARs issued calculated using a Black Scholes model at each reporting period. Compensation expense continues to be recorded over the vesting period of the award. The Company intends to adopt SFAS 123R using the Modified Prospective Transition method which will require a cumulative adjustment for the difference, if any, in the amount of accrued compensation expense recorded as of December 31, 2005 and the amount required under the provisions of SFAS 123R. The Company is still in the
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process of evaluating the impact that the adoption of SFAS 123R will have on its consolidated financial statements.
In March 2005, the FASB issued FIN 47, “Accounting for Conditional Asset Retirement Obligations,” an interpretation of SFAS 143. This statement clarified the term conditional asset retirement obligation and is effective for the Company’s fourth quarter ending December 31, 2005. Adoption of FIN 47 did not have an impact on the Company’s consolidated financial statements.
In September 2005, the EITF amended and ratified previous consensus on EITF No. 05-6, “Determining the Amortization Period for Leasehold Improvements Purchased after Lease Inception or Acquired in a Business Combination” which addresses the amortization period for leasehold improvements in operating leases that are either placed in service significantly after and not contemplated at or near the beginning of the initial lease term or acquired in a business combination. This consensus applies to leasehold improvements that are purchased or acquired in reporting periods beginning after ratification. Adoption of the provisions of EITF No. 05-6 did not have an impact on the Company’s consolidated financial statements.
In October 2005, the FASB issued FSP SFAS 13-1, “Accounting for Rental Costs Incurred during a Construction Period.” FSP SFAS 13-1 clarifies that rental costs associated with ground or building operating leases that are incurred during a construction period should be recognized as rental expense. This statement is effective with the Company’s first quarter of 2006. Adoption of this standard will not have an impact on the Company’s consolidated financial statements.
Item 7A. Quantitative and Qualitative Disclosures about Market Risks
The Company currently has no outstanding bank debt or fixture financing. If the Company should obtain financing or draw on its existing lines of credit, which bear interest at the bank’s reference rate or the bank’s adjusted London Interbank Offer Rate (LIBOR) plus an index up to 1.2%, the Company could then be exposed to market risk related to interest fluctuations.
A change in market prices exposes the Company to market risk related to its investments. As of December 31, 2005, all investments were classified as available-for-sale securities and totaled $20,650,000. A hypothetical 10% drop in the market value of these investments would result in a $2,065,000 unrealized loss and a corresponding decrease in the fair value of these instruments. This hypothetical drop would not affect cash flow and would not have an impact on earnings until the Company sold the investments.
Item 8. Financial Statements and Supplementary Data
See Index to Consolidated Financial Statements.
Item 9. Changes in and Disagreements with Accountants on Accounting and Financial Disclosure
None.
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