AFFILIATED COMPUTER SERVICES, INC. AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED)
15. New Accounting Standards
In May 2003, the Emerging Issues Task Force ("EITF") issued EITF 01 08 " Determining Whether an Arrangement Contains a
Lease." EITF 01 08 provides guidance on how to determine whether an arrangement contains a lease that is within the scope
of Statement of Financial Accounting Standards No. 13, "Accounting for Leases." The guidance in EITF 01 08 is based on
whether the arrangement conveys to the purchaser (lessee) the right to use a specific asset. EITF 01 08 is effective for
arrangements entered into or modified on or after May 28, 2003. We do not believe that the adoption of EITF 01 08 will have
a material impact on our financial position or results of operations.
In May 2003, the FASB issued Statement of Financial Accounting Standards No. 150, Accounting for Certain Financial
Instruments with Characteristics of both Liabilities and Equity ( SFAS 150 ). SFAS 150 establishes standards for the
classification and measurement of certain financial instruments with characteristics of both liabilities and equity. This statement is
effective for financial instruments entered into or modified after May 31, 2003. The adoption of SFAS 150 had no effect on our
financial position or results of operations.
In January 2003, the FASB issued FASB Interpretation No. 46, Consolidation of Variable Interest Entities ( FIN 46 ), an
interpretation of Accounting Research Bulletin No. 51, Consolidated Financial Statements, which addresses the criteria for
consolidation by business enterprises of variable interest entities. We do not have variable interest entities and therefore, FIN
46 will have no impact on our financial position or results of operations.
In November 2002, the FASB issued Interpretation No. 45, Guarantor's Accounting and Disclosure Requirements for
Guarantees, Including Indirect Guarantees of Indebtedness to Others ( FIN 45 ). FIN 45 requires that a guarantor recognize
a liability at inception of certain guarantees and disclose certain other types of guarantees, even if the likelihood of requiring
the guarantor's performance is remote. The initial recognition and measurement provisions of FIN 45 are applicable to
guarantees issued or modified after December 31, 2002. The disclosure provisions of FIN 45 are effective for financial
statements that end after December 15, 2002. The adoption of FIN 45 did not have a material effect on our financial position
or results of operations.
16. Comprehensive Income
Statement of Financial Accounting Standards No. 130, Reporting Comprehensive Income ("SFAS 130"), establishes
standards for reporting and display of comprehensive income and its components in financial statements. The objective of
SFAS 130 is to report a measure of all changes in equity of an enterprise that result from transactions and other economic
events of the period other than transactions with owners. Comprehensive income is the total of net income and all other non
owner changes within a company's equity.
The components of comprehensive income are as follows (in thousands):
Year ended June 30,
Other comprehensive income (loss):
Foreign currency translation adjustment (net of tax effect
Unrealized gain (loss) on marketable security
Unrealized gain (loss) on hedging instruments (net of tax
effect of ($139) and $139, respectively)
The unrealized gain (loss) on marketable security relates to an investment in a marketable security which was sold in June
2002. The unrealized gain (loss) on hedging instruments relates to derivative instruments held by us due in fiscal 2002 and
2001 as described in Note 12.