In the FASB issued Accounting Standards Update (“ASU”) - “Intangibles - Goodwill and Other (Topic ): Simplifying the Test for Goodwill Impairment”, which changes the subsequent measurement of goodwill impairment by eliminating Step from 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 i.e., a effective date), with early adoption permitted for goodwill impairment tests with measurement dates after The Company believes the adoption will have a material impact on its consolidated balance sheets, statements of operations, statements of cash flows and related disclosures.

 

In the FASB issued ASU - “Leases (Topic )”. Under Topic 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. Topic offers 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, Topic is effective for annual reporting periods beginning after including interim periods within that reporting period, and requires a modified retrospective adoption, with early adoption permitted. In the FASB issued ASU - “Codification Improvements to Topic Leases”. This ASU makes various targeted amendments to the leasing standard and we are evaluating this ASU in connection with adoption of the standard. In the FASB issued ASU - “Leases (Topic ): Targeted Improvements.” This standard allows entities to initially apply the new leases standard at the adoption date and recognize a cumulative-effect adjustment to the opening balance of retained earnings in the period of adoption. The Company will adopt the standard on using the optional transition method.  The standard also provides for certain practical expedients. The Company continues to evaluate and is in the process of documenting the impact of the pending adoption of the new standard on its consolidated financial position, disclosures and/or internal controls process. The Company believes the adoption of Topic will result in the Company recording right-of-use assets and liabilities on the consolidated balance sheets for leases currently classified as operating leases, along with enhanced disclosures of lease activity.  It is expected that Topic will have an impact on the Company’s accounting for rental revenues, although that determination is still being finalized.

 

In the FASB issued ASU - “Financial Instruments (Topic ) Credit Losses”. Topic changes 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 accounted 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. Topic is effective as of Early adoption is permitted. The Company is currently evaluating the impact of Topic on its consolidated balance sheets, statements of operations, statements of cash flows and related disclosures.