This excerpt taken from the CYBS 10-K filed Mar 13, 2007.
New Accounting Pronouncements
In July 2006, the FASB issued FASB Interpretation Number 48, Accounting for Uncertainty in Income Taxes (FIN 48), an interpretation of SFAS 109. FIN 48 clarifies the accounting for uncertainty in income taxes recognized in an enterprises financial statements in accordance with SFAS 109. FIN 48 is effective for fiscal years beginning after December 15, 2006 and as a result is effective for the Company in the first quarter of 2007. The Company is currently evaluating the impact the adoption of FIN 48 could have on its consolidated financial position, results of operations and cash flows.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS(Continued)
In September 2006, the FASB issued SFAS 157, Fair Value Measurements (SFAS 157), which defines fair value, establishes a framework for measuring fair value in generally accepted accounting principles, and expands disclosures about fair value measurements. SFAS 157 is effective for financial statements issued for fiscal years beginning after November 15, 2007, and interim periods within those fiscal years. Early adoption is permitted. The Company must adopt these new requirements no later than the first quarter of 2008. The Company has not yet determined the effect on the Companys consolidated financial statements, if any, upon adoption of SFAS 157, or if it will adopt the requirements prior to the first fiscal quarter of 2008.
In September 2006, the SEC staff issued Staff Accounting Bulletin No. 108, Considering the Effects of Prior Year Misstatements when Quantifying Misstatements in Current Year Financial Statements (SAB 108). The intent of SAB 108 is to reduce diversity in practice for the method companies use to quantify financial statement misstatements, including the effect of prior year uncorrected errors. SAB 108 establishes an approach that requires quantification of financial statement errors using both an income statement and a cumulative balance sheet approach. SAB 108 is effective for annual financial statements for fiscal years ending after November 15, 2006. The adoption of SAB 108 is not currently expected to have a significant impact on the Companys consolidated financial statements.
This excerpt taken from the CYBS 10-K filed Mar 10, 2006.
New Accounting Pronouncements
In December 2004, the Financial Accounting Standards Board (FASB) issued SFAS No. 123 (revised 2004), Share-Based Payment (SFAS No. 123R), which replaces SFAS No. 123 and supercedes APB No. 25. SFAS No. 123R will require the Company to measure all employee stock-based compensation awards using a fair value method and record the expense in the Companys consolidated financial statements. The provisions of SFAS No. 123R, as amended by SEC Staff Accounting Bulletin No. 107, Share-Based Payment, are effective for fiscal years beginning after June 15, 2005. The Company will adopt SFAS 123R using the modified prospective transition method in its first quarter of 2006.
The Company has assessed the impact of this change in accounting and believes that the adoption of SFAS No. 123R will materially reduce the Companys reported results of operations. The full impact is dependent upon, among other things, the outcome of the Companys current assessment of different long-term incentive strategies involving stock awards in order to continue to attract and retain employees, the total number of stock awards granted and the tax benefit that the Company may or may not receive from stock-based expenses. In addition, SFAS No. 123R requires the tax benefits from employee stock plans to be classified as a financing activity in the consolidated statement of cash flows rather than as an adjustment of operating activity as currently presented.