Note 7: New accounting pronouncements
In June 2006, the Financial Accounting Standards
Board (FASB) issued Interpretation No. 48,
Accounting for Uncertainty in Income Taxes (the
Interpretation). The Interpretation prescribes a
minimum threshold for financial statement recognition
of the benefit of a tax position taken or
expected to be taken by a filer in the filers tax
return. Upon adoption, the Interpretation did not
have a material effect on the funds financial statements.
However, the conclusions regarding the
Interpretation may be subject to review and
adjustment at a later date based on factors
including, but not limited to, further implementation
guidance expected from the FASB, and
on-going analysis of tax laws, regulations and
interpretations thereof.
In March 2008, Statement of Financial Accounting
Standards No. 161, Disclosures about Derivative
Instruments and Hedging Activities (SFAS 161)an
amendment of FASB Statement No. 133 (SFAS
133), was issued and is effective for fiscal years
beginning after November 15, 2008. SFAS 161
requires enhanced disclosures about how and
why an entity uses derivative instruments and how
derivative instruments affect an entitys financial
position. Putnam Management is currently evaluating
the impact the adoption of SFAS 161 will have
on the funds financial statement disclosures.