Note 12 - Recent Accounting Pronouncements and Developments
|6 Months Ended|
Jun. 30, 2018
|Notes to Financial Statements|
|New Accounting Pronouncements and Changes in Accounting Principles [Text Block]||
Recent Accounting Pronouncements and Developments
January 2017,the FASB issued Accounting Standards Update (“ASU”)
04,“Intangibles - Goodwill and Other (Topic
350): Simplifying the Test for Goodwill Impairment”, which changes the subsequent measurement of goodwill impairment by eliminating Step
2from the impairment test. Under the new guidance, an entity will measure impairment using the difference between the carrying amount and the fair value of the reporting unit. The new standard is effective for fiscal years beginning after
December 15, 2019 (i.e., a
January 1, 2020effective date), with early adoption permitted for goodwill impairment tests with measurement dates after
January 1, 2017.The Company believes the adoption will
nothave a material impact on its consolidated balance sheets, statements of operations, statements of cash flows and related disclosures.
February 2016,the FASB issued ASU
02”). Under ASU
02,an entity will be required to recognize right-of-use assets and lease liabilities on its balance sheet and disclose key information about leasing arrangements. ASU
02offers specific accounting guidance for a lessee, a lessor and sale and leaseback transactions. Lessees and lessors are required to disclose qualitative and quantitative information about leasing arrangements to enable a user of the financial statements to assess the amount, timing and uncertainty of cash flows arising from leases. For public companies, ASU
02is effective for annual reporting periods beginning after
December 15, 2018,including interim periods within that reporting period, and requires a modified retrospective adoption, with early adoption permitted. The Company is currently evaluating the impact of the pending adoption of the new standard on its consolidated financial position and/or disclosures. The Company believes the adoption of ASU
02will result in the Company recording right-of-use assets and liabilities on the consolidated balance sheets for leases currently classified as operating leases.
June 2016,the FASB issued ASU
13,“Financial Instruments (Topic
326) Credit Losses” (“ASU
13changes the impairment model for most financial assets and certain other instruments. Under the new standard, entities holding financial assets and net investment in leases that are
notaccounted for at fair value through net income are to be presented at the net amount expected to be collected. An allowance for credit losses will be a valuation account that will be deducted from the amortized cost basis of the financial asset to present the net carrying value at the amount expected to be collected on the financial asset. ASU
13is effective as of
January 1, 2020.Early adoption is permitted. The Company is currently evaluating the impact of ASU
13on its consolidated balance sheets, statements of operations, statements of cash flows and related disclosures.
The entire disclosure of changes in accounting principles, including adoption of new accounting pronouncements, that describes the new methods, amount and effects on financial statement line items.
Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef