Wendy's International (WEN)

Costs of Business Acquisitions

The Company defers any costs incurred relating to the pursuit of business acquisitions while the potential acquisition process is ongoing. If the acquisition is successful, such costs are then included as a component of the purchase price of the acquired entity. Whenever the Company decides it will no longer pursue a potential acquisition, any related deferred costs are expensed at that time. However, if the Financial Accounting Standards Board (the “FASB”) issues the proposed Statement of Financial Accounting Standards, “Business Combinations, a replacement of FASB Statement No. 141,” in its current form, subsequent to the adoption date of that proposed standard all such costs will be required to be expensed when incurred.

Costs of Business Acquisitions

       The Company defers any costs incurred relating to the pursuit of business acquisitions while the potential acquisition process is ongoing. Whenever the acquisition is successful, such costs are included as a component of the purchase price of the acquired entity. Whenever the Company decides it will no longer pursue a potential acquisition, any related deferred costs are expensed at that time.