Robert Wood Johnson Foundation 2008 Annual Report

• Letter from the Chief Financial Officer and Treasurer
• Letter from the Chief Investment Officer
• Report of Independent Auditors
• Statements of Financial Position
• Statements of Activities
• Statements of Cash Flows
• Notes to Financial Statements
  • Organization
  • Summary of Significant Accounting Policies
  • Federal Taxes
  • Contributions Receivable
  • Investments
  • Property and Equipment
  • Unpaid Grants
  • Benefit Plans
  • Capital Lease Obligations
  • New Accounting Pronouncements
  • Subsequent Event
• Form 990-PF

10. Recent Accounting Pronouncements

In July 2006, the FASB issued Interpretation No. 48, Accounting for uncertainty in Income Taxes — an interpretation of FASB Statement 109 (“FIN 48”), which establishes a minimum threshold for financial statement recognition of the benefit of posi- tions taken, or expected to be taken, in filing tax returns. FIN 48 requires the evaluation of tax positions taken, or expected to be taken, in the course of preparing the Foundation’s tax returns to determine whether the tax positions are “more-likely-than-not” of being sustained by the applicable tax authority. Under FIN 48, tax positions not deemed to meet the “more-likely-than-not” threshold would be recorded as a tax liability and reduce net assets.

On February 1, 2008, FASB issued FIN 48-2, “Accounting for uncertainty in Income Taxes,” an interpretation of FASB Statement No. 109 for certain non-public enterprises, and on December 30, 2008, issued FIN 48-3, “Effective Date of FASB Interpretation No. 48 for Certain Nonpublic Enterprises” (“FSP 48-3”). On the basis of FSP 48-3, FIN 48 will become effective for the Foundation at December 31, 2009.

The Foundation will continue to accrue for liabilities relating to uncertain tax positions only when such liabilities are probable and reasonably estimatable. Based on its continued analysis, the Foundation’s assessment is that the adoption of FIN 48 will not have a material impact to the Foundation’s financial statements. However, conclusions regarding FIN 48 may be subject to review and adjustment at a later date based on on-going analyses of tax laws, regulations and interpretations thereof and other factors.

In March 2008, the Financial Accounting Standards Board (“FASB”) issued Statement of Accounting Standards No. 161, Disclosures about Derivative Instruments and Hedging Activities (“SFAS 161”). SFAS 161 requires enhanced disclosure regarding how and why an entity uses derivatives, how derivatives are accounted for, and how derivatives affect an entity’s results of operations and financial position. SFAS 161 applies to reporting periods beginning after November 15, 2008. SFAS 161 is not expected to have a material impact on the Foundation’s financial statements.