phil_ex2


Exhibit 2: Guidance From the EITF
SEC Issue to Address Priority (By SEC) Where Found ) EITF Status
Advertising barter transactions Level 1 Issue 99-17 Consensus*
Gross vs. net revenue and display cost Level 1 Issue 99-19 Consensus*
Accounting for the costs of developing a Web site Level 1 Issue 00-2 and 00-20 Consensus* on 00-2, 00-20 (content) to be discussed further
Accounting for shipping and handling revenues and costs Level 2 Issue 00-10 Consensus*
Accounting for the costs of computer files that are essentially films, music or other content Level 2 To be discussed May ultimately be addressed in Issue no. 00-20 (below)
Application of SOP 97-2 to arrangements that include the right to use software stored on another entity’s hardware Level 2 Issue 00-3 Consensus*
Accounting for “point” and other loyalty programs Level 2 Issue 00-22 Discussed, but no consensus. Further discussion expected
Accounting by the holder of an instrument (not defined as derivative instrument) with conversion or terms that are variable based on exercisability upon future events Level 2 Issue 00-8 Consensus*
Accounting for coupons, rebates and discounts Level 2 Issue 00-14 Consensus*
Accounting for service outages Level 2 Classification addressed indirectly in 00-14 Consensus*
Accounting for advertising or other arrangements where the service provider guarantees a specified amount of activity Level 3 To be discussed Appears to be addressed in SAB 101, related Q&A, and 00-22
Accounting for front-end and back-end fees FE—potential SEC staff announcement BE—Level 3 To be discussed Appears to be addressed in SAB 101, related Q&A, and 00-21
Income statement classification of rebates and other discounts Potential SEC staff announcement Issue 00-14 Consensus*
Accounting for free or heavily discounted products Potential SEC staff announcement Issue 00-14 Consensus*
Accounting for access, maintenance and publication fees Potential SEC staff announcement To be discussed Appears to be addressed in SAB 101, related Q&A, and 00-21
Statement 131 disclosures about Internet portion of a company’s business No level assigned Removed from agenda N/A
*When consensus is reached it becomes a GAAP requirement.

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