Sterlite Industries (India) Limited - Sterlite Industries India Ltd.

SFAS No. 161, “Disclosures about Derivative Instruments and Hedging Activities — an amendment of FASB Statement No. 133”
In March 2008, the FASB issued SFAS 161, “Disclosures about Derivative Instruments and Hedging Activities — an amendment of FASB
Statement No. 133,” or SFAS 161, which modifies and expands the disclosure requirements for derivative instruments and hedging activities.
SFAS 161 requires that objectives for using derivative instruments be disclosed in terms of underlying risk and accounting designation and
requires quantitative disclosures about fair value amounts and gains and losses on derivative instruments. It also requires disclosures about
credit-related contingent features in derivative agreements. SFAS 161 is effective for financial statements issued for fiscal years and interim
periods beginning after November 15, 2008, with early application encouraged. SFAS 161 encourages, but does not require, comparative
disclosures for earlier periods at initial adoption. Our management is currently evaluating the impact, if any, the adoption of SFAS 161 will
have on our financial reporting and disclosures.
FASB Staff Position No. FAS 115-2 and FAS 124-2, “Recognition and Presentation of Other-Than-Temporary Impairments”
In April 2009, the FASB issued FASB Staff Position No. FAS 115-2 and FAS 124-2, “Recognition and Presentation of Other-Than-
Temporary Impairments,” or FAS 115-2 and FAS 124-2. The objective of an other-than-temporary impairment analysis under existing U.S.
GAAP is to determine whether the holder of an investment in a debt or equity security for which changes in fair value are not regularly
recognized in earnings (such as securities classified as held-to-maturity or available-for-sale) should recognize a loss in earnings when the
investment is impaired. An investment is impaired if the fair value of the investment is less than its amortized cost basis. We are currently
evaluating the impact of FAS 115-2 and FAS 124-2 on our consolidated financial position and results of operation for items within the scope of
FAS 115-2 and FAS 124-2 which becomes effective beginning with our first quarter of 2010.
FASB Staff Position No. FAS 107-1 and APB 28-1, “Interim Disclosures about Fair Value of Financial Instruments”
In April 2009, the FASB issued FASB Staff Position No. FAS 107-1 and APB 28-1, “Interim Disclosures about Fair Value of Financial
Instruments,” or FAS 107-1 and APB 28-1. FAS 107-1 and APB 28-1 amends FASB Statement No. 107, “Disclosures about Fair Value of
Financial Instruments,” to require disclosures about fair value of financial instruments for interim reporting periods of publicly traded
companies as well as in annual financial statements. FAS 107-1 and APB 28-1 also amends APB Opinion No. 28, “Interim Financial
Reporting,” to require those disclosures in summarized financial information at interim reporting periods. We are currently evaluating the
impact of FAS 107-1 and APB 28-1 on our consolidated financial position and results of operation for items within the scope of FAS 115-2 and
FAS 124-2 which become effective beginning with our first quarter of 2010
FSP FAS 142-3, “Determination of the Useful Life of Intangible Assets”
In April 2008, the FASB issued FSP FAS 142-3, “Determination of the Useful Life of Intangible Assets,” or FSP 142-3. This guidance is
intended to improve the consistency between the useful life of a recognized intangible asset under SFAS No. 142, “Goodwill and Other
Intangible Assets,” or SFAS 142, and the period of expected cash flows used to measure the fair value of the asset under SFAS 141R when the
underlying arrangement includes renewal or extension of terms that would require substantial costs or result in a material modification to the
asset upon renewal or extension. Companies estimating the useful life of a recognized intangible asset must now consider their historical
experience in renewing or extending similar arrangements or, in the absence of historical experience, must consider assumptions that market
participants would use about renewal or extension as adjusted for FAS 142’s entity-specific factors. FSP 142-3 is effective for us beginning
April 1, 2009. We will be required to adopt this FSP prospectively for all assets acquired after April 1, 2009 and early adoption is prohibited.
Its effects on future periods will depend on the nature and specific facts of assets acquired subject to FAS No. 142.
FSP FAS 132(R)-1, “Employers’ Disclosures about Postretirement Benefit Plan Assets”
In December 2008, the FASB issued FSP FAS 132(R)-1, “Employers’ Disclosures about Postretirement Benefit Plan Assets,” or FSP 132
(R)-1. This guidance amends FAS No. 132(R), “Employers’ Disclosures about Pensions and Other Postretirement Benefits,” to require more
detailed disclosures about the fair value measurements of employers’ plan assets including (a) investment policies and strategies; (b) major
categories of plan assets; (c) information about valuation techniques and inputs to those techniques, including the fair value hierarchy
classifications (as defined by FAS No. 157) of the major categories of plan assets; (d) the effects of fair value measurements using significant
unobservable inputs (level 3) on changes in plan assets; and (e) significant concentrations of risk within plan assets. The disclosures required
by the FSP is effective for us beginning April 1, 2009. This statement does not impact the consolidated financial results as it is disclosure-only
in nature.
FSP SFAS 165, “Subsequent Events”
In May 2009, the FASB issued FSP SFAS No. 165, “Subsequent Events,” or SFAS 165, which provides guidance on accounting for and
disclosures of events that occur after the balance sheet date but before financial statements are issued or are available to be issued. SFAS 165 is
effective for fiscal years and interim periods ending after June 15, 2009. Our management is currently evaluating the impact, if any, the
adoption of SFAS 165 will have on our financial reporting and disclosure.
FSP SFAS 168, “The FASB Accounting Standards Codification and the Hierarchy of Generally Accepted Accounting Principles”
In June 2009, FASB issued FSP SFAS No. 168, “The FASB Accounting Standards Codification and the Hierarchy of Generally Accepted
Accounting Principles,” or SFAS 168. This guidance replaces FASB Statement No. 162, “The Hierarchy of Generally Accepted Accounting
Principles,” or SFAS 162. The FASB Accounting Standards Codification will be the source of authoritative US GAAP recognized by the
FASB to be applied by non-governmental entities. Rules and interpretive releases of the SEC under the authority of federal securities laws are
also sources of authoritative GAAP for SEC registrants. On the effective date of SFAS 168, the FASB Accounting Standards Codification will
supersede all then-existing non-SEC accounting and reporting standards. All other non-grandfathered non-SEC accounting literature not
included in the FASB Accounting Standards Codification will become non-authoritative. SFAS 168 is effective for financial statements issued
for fiscal years and interim periods ending after September 15, 2009. Once the FASB Accounting Standards Codification is in effect, all of its
content will carry the same level of authority, effectively superseding SFAS 162. The issuance of SFAS 168 (and the FASB Accounting
Standards Codification) will not change US GAAP except for certain non-public non-governmental entities and accordingly, the adoption of
SFAS 168 will not have any impact on our financial reporting and disclosures.
FASB Staff Position No. FAS 141(R)-1, “Accounting for Assets Acquired and Liabilities Assumed in a Business Combination That Arise
from Contingencies”
In April 2009, the FASB issued FASB Staff Position No. FAS 141(R)-1, “Accounting for Assets Acquired and Liabilities Assumed in a
Business Combination That Arise from Contingencies,” or FSP 141(R)-1, to amend and clarify the initial recognition and measurement,
subsequent measurement and accounting, and related disclosures arising from contingencies in a business combination under SFAS 141(R).
Our management is currently evaluating the impact, if any, the adoption of FSP 141(R)-1 will have on our financial reporting and disclosures,
which will become effective beginning with our first quarter of 2010.
Emerging Issues Task Force (“EITF”) 08-6, “Equity Method Investment Accounting Considerations”
In November 2008, the FASB issued EITF 08-6, “Equity Method Investment Accounting Considerations,” or EITF 08-6, which clarifies the
accounting for transactions such as Change in Level of Ownership or Degree of Influence and contingent consideration, and impairment