GMCR » Topics » Fair Value of Financial Instruments

This excerpt taken from the GMCR 10-Q filed May 7, 2009.

Fair Value of Financial Instruments

The Company adopted Statement of Financial Accounting Standards No. 157, Fair Value Measurements (“SFAS 157”) during the first quarter of fiscal 2009. This standard provides guidance for using fair value to measure all assets and liabilities. SFAS 157 applies where other standards require, or permit, assets or liabilities to be measured at fair value but does not expand the use of fair value in any new circumstances. Under SFAS 157, fair value refers to the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants in the principal or most advantageous market. In accordance with Financial Accounting Standards Board (“FASB”) Staff Position FAS 157-2 (“FSP 157-2”), the effective date for fair value measurement of nonfinancial assets and liabilities, except for items recognized at fair value on a recurring basis, was deferred until the Company’s 2010 fiscal year. The Company is currently reviewing this accounting standard for nonfinancial assets and liabilities, however does not expect it to have a material impact on its financial statements.

During the first quarter of fiscal 2009, the Company also adopted Statement of Financial Accounting Standards No. 159, The Fair Value Option for Financial Assets and Financial Liabilities Including an amendment of FASB Statement No. 115 (“SFAS 159”). SFAS 159 permits entities to choose to measure certain financial instruments and certain other items at fair value. As of December 27, 2008, the Company has not elected the fair value option for any additional assets and liabilities.

This excerpt taken from the GMCR 10-Q filed Feb 5, 2009.

Fair Value of Financial Instruments

The Company adopted Statement of Financial Accounting Standards No. 157, Fair Value Measurements (“SFAS 157”) during the first quarter of fiscal 2009. This standard provides guidance for using fair value to measure all assets and liabilities. SFAS 157 applies where other standards require, or permit, assets or liabilities to be measured at fair value but does not expand the use of fair value in any new circumstances. Under SFAS 157, fair value refers to the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants in the principal or most advantageous market. In accordance with Financial Accounting Standards Board (“FASB”) Staff Position FAS 157-2 (“FSP 157-2”), the effective date for fair value measurement of nonfinancial assets and liabilities, except for items recognized at fair value on a recurring basis, was deferred until the Company’s 2010 fiscal year. The Company is currently reviewing this accounting standard for nonfinancial assets and liabilities, however does not expect it to have a material impact on its financial statements.

During the first quarter of fiscal 2009, the Company also adopted Statement of Financial Accounting Standards No. 159, The Fair Value Option for Financial Assets and Financial Liabilities Including an amendment of FASB Statement No. 115 (“SFAS 159”). SFAS 159 permits entities to choose to measure certain financial instruments and certain other items at fair value. As of December 27, 2008, the Company has not elected the fair value option for any additional assets and liabilities.


EXCERPTS ON THIS PAGE:

10-Q
May 7, 2009
10-Q
Feb 5, 2009
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