Accuray Incorporated
Notes to Consolidated Financial Statements (Continued)
2. Summary of Significant Accounting Policies (Continued)
revenue recognition for research or development transactions. This ASU is effective for interim and
annual reporting periods beginning after June 15, 2010. The adoption of ASU No. 2010-17 is not
expected to have a material impact on the Company’s consolidated financial statements.
In February 2010, the FASB issued ASU No. 2010-09, Amendments to Certain Recognition and
Disclosure Requirements. ASU No. 2010-09 amends FASB Accounting Standards Codification (‘‘ASC’’)
855 and removes the requirement to disclose the date through which management evaluated
subsequent events in the financial statements. This ASU is effective immediately for all financial
statements that have not been issued or have not yet become available to be issued. The adoption of
ASU No. 2010-09 did not have a material impact on the Company’s consolidated financial statements.
In January 2010, the FASB issued ASU No. 2010-06, Improving Disclosures about Fair Value
Measurements. ASU No. 2010-06 amends FASB ASC 820 and clarifies and provides additional
disclosure requirements related to recurring and non-recurring fair value measurements and employers’
disclosures about postretirement benefit plan assets. The new disclosures and clarifications under this
ASU are effective over a period of two fiscal years, for interim and annual reporting periods beginning
after December 15, 2009 and after December 15, 2010. The first adoption date updates under ASU
No. 2010-06 did not have a material impact on the Company’s consolidated financial statements. The
adoption of the second date of updates is not expected to have a material impact on the Company’s
consolidated financial statements.
In October 2009, the FASB issued ASU No. 2009-13, Multiple-Deliverable Revenue Arrangements,
(amendments to ASC Topic 605, Revenue Recognition) (‘‘ASU 2009-13’’) (formerly EITF Issue 08-1) and
ASU No. 2009-14, Certain Arrangements That Include Software Elements, (amendments to FASB ASC
Topic 985, Software) (‘‘ASU 2009-14’’) (formerly Emerging EITF 09-3). ASU 2009-13 requires entities
to allocate revenue in an arrangement using estimated selling prices of the delivered goods and services
based on a selling price hierarchy. The amendments eliminate the residual method of revenue
allocation and require revenue to be allocated using the relative selling price method. ASU 2009-14
removes tangible products from the scope of software revenue guidance and provides guidance on
determining whether software deliverables in an arrangement that includes a tangible product are
covered by the scope of the software revenue guidance. ASU 2009-13 and ASU 2009-14 should be
applied on a prospective basis for revenue arrangements entered into or materially modified in fiscal
years beginning on or after June 15, 2010, with early adoption permitted. The Company will adopt
ASU 2009-13 and ASU 2009-14 in fiscal 2011 and is currently assessing the impact of the adoption of
ASU 2009-13 and ASU 2009-14 on the its consolidated financial statements.
In December 2009, the FASB issued ASU No. 2009-17, Consolidations—Improvements to Financial
Reporting by Enterprises with Variable Interest Entities, (formerly SFAS No. 167, Amendments to FASB
Interpretation No. 46(R)). ASU 2009-17 eliminates the quantitative approach previously required for
determining the primary beneficiary of a variable interest entity and to require ongoing qualitative
reassessments of whether an enterprise is the primary beneficiary of a variable interest entity.
ASU 2009-17 requires additional disclosures about an enterprise’s involvement in variable interest
entities. ASU 2009-17 is effective as of the beginning of each reporting entity’s first annual reporting
period that begins after November 15, 2009, for interim periods within that first annual reporting
period, and for interim and annual reporting periods thereafter. Earlier application is prohibited. The
adoption of ASU 2009-17 is not expected to have a material impact on the Company’s consolidated
financial statements.
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