CEG » Topics » SFAS No. 160

These excerpts taken from the CEG 10-K filed Feb 27, 2009.

SFAS No. 160

In December 2007, the FASB issued SFAS No. 160, Noncontrolling Interests in Consolidated Financial Statements, an amendment of ARB No. 51. SFAS No. 160 provides that a noncontrolling interest in a subsidiary is an ownership interest in the consolidated entity that should be reported as equity in the consolidated financial statements. SFAS No. 160 requires that companies:

    present noncontrolling interests in the consolidated balance sheet as a separate line item within equity,
    separately present on the face of the income statement the amount of consolidated net income attributable to the parent and to the noncontrolling interest,
    account for changes in ownership interests that do not result in a change in control as equity transactions, and
    upon deconsolidation of a subsidiary due to a change in control, measure any retained interest at fair value and record a gain or loss for both the portion sold and the portion retained.

        SFAS No. 160 must be applied prospectively as of January 1, 2009, except that existing noncontrolling interests must be reclassified retrospectively for all periods presented.

        The adoption of SFAS No. 160 will affect how we present and disclose noncontrolling interests in our financial statements and how we account for future changes in ownership interests in subsidiaries. Specifically, we will:

    reclassify approximately $20 million of noncontrolling interests to a separate line within common shareholders' equity, and
    record the income attributable to our noncontrolling interests in a separate line on the Consolidated Statement of Income (Loss) after net income in order to arrive at net income available to common stock.

        Upon closing of our Investment Agreement with EDF, under SFAS No. 160, we anticipate that we will deconsolidate our subsidiary that owns our nuclear generation and operation business, record our ownership interest in this entity at fair value, and recognize a material gain on both the portion of the subsidiary sold to EDF and our retained interest.

SFAS No. 160



In December 2007, the FASB issued SFAS No. 160, Noncontrolling Interests in Consolidated Financial Statements, an
amendment of ARB No. 51
. SFAS No. 160 provides that a noncontrolling interest in a subsidiary is an ownership interest in the consolidated entity that should be
reported as equity in the consolidated financial statements. SFAS No. 160 requires that companies:





    present
    noncontrolling interests in the consolidated balance sheet as a separate line item within equity,
    separately
    present on the face of the income statement the amount of consolidated net income attributable to the parent and to the noncontrolling interest,
    account
    for changes in ownership interests that do not result in a change in control as equity transactions, and
    upon
    deconsolidation of a subsidiary due to a change in control, measure any retained interest at fair value and record a gain or loss for both the portion sold and the
    portion retained.



        SFAS
No. 160 must be applied prospectively as of January 1, 2009, except that existing noncontrolling interests must be reclassified retrospectively for all periods
presented.



        The
adoption of SFAS No. 160 will affect how we present and disclose noncontrolling interests in our financial statements and how we account for future changes in ownership
interests in subsidiaries. Specifically, we will:





    reclassify
    approximately $20 million of noncontrolling interests to a separate line within common shareholders' equity, and
    record
    the income attributable to our noncontrolling interests in a separate line on the Consolidated Statement of Income (Loss) after net income in order to arrive at net
    income available to common stock.



        Upon
closing of our Investment Agreement with EDF, under SFAS No. 160, we anticipate that we will deconsolidate our subsidiary that owns our nuclear generation and operation
business, record our ownership interest in this entity at fair value, and recognize a material gain on both the portion of the subsidiary sold to EDF and our retained interest.



These excerpts taken from the CEG 10-K filed Feb 27, 2008.

SFAS No. 160

In December 2007, the FASB issued SFAS No. 160, Noncontrolling Interests in Consolidated Financial Statements, an amendment of ARB No. 51. SFAS No. 160 clarifies that a noncontrolling interest in a subsidiary is an ownership interest in the consolidated entity that should be reported as equity in the consolidated financial statements. SFAS No. 160 requires that changes in a parent's ownership interest in a subsidiary be reported as an equity transaction in the consolidated financial statements when it does not result in a change in control of the subsidiary. When a change in a parent's ownership interest results in deconsolidation, a gain or loss should be recognized in the consolidated financial statements. SFAS No. 160 must be applied prospectively as of January 1, 2009, except for the presentation and disclosure requirements, which are required to be applied retrospectively for all periods presented. We are currently evaluating the impact of SFAS No. 160 but do not expect the adoption of this standard to have a material impact on our, or BGE's, financial results.

SFAS No. 160



In December 2007, the FASB issued SFAS No. 160, Noncontrolling Interests in Consolidated Financial Statements, an amendment of ARB
No. 51
. SFAS No. 160 clarifies that a noncontrolling interest in a subsidiary is an ownership interest in the consolidated entity that should be reported as
equity in the consolidated financial statements. SFAS No. 160 requires that changes in a parent's ownership interest in a subsidiary be reported as an equity transaction in the consolidated
financial statements when it does not result in a change in control of the subsidiary. When a change in a parent's ownership interest results in deconsolidation, a gain or loss should be recognized in
the consolidated financial statements. SFAS No. 160 must be applied prospectively as of January 1, 2009, except for the presentation and disclosure requirements, which are required to be
applied retrospectively for all periods presented. We are currently evaluating the impact of SFAS No. 160 but do not expect the adoption of this standard to have a material impact on our, or
BGE's, financial results.




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