The interim consolidated financial statements of Bio-Techne Corporation and subsidiaries, (the Company) presented here have been prepared by the Company and are unaudited. They have been prepared in accordance with accounting principles generally accepted in the United States of America and with instructions to Form -Q and Article of Regulation S-X. They reflect all adjustments which are, in the opinion of management, necessary for a fair presentation of the results for the interim periods presented. All such adjustments are of a normal recurring nature.

 

Certain information and footnote disclosures normally included in financial statements prepared in accordance with accounting principles generally accepted in the United States of America have been condensed or omitted. These interim unaudited condensed consolidated financial statements should be read in conjunction with the Company's Consolidated Financial Statements and Notes thereto for the fiscal year ended   included in the Company's Annual Report on Form -K for fiscal A summary of significant accounting policies followed by the Company is detailed in the Company's Annual Report on Form -K for fiscal The Company follows these policies in preparation of the interim unaudited condensed consolidated financial statements.

 

 

In the Financial Accounting Standards Board (“FASB”) issued ASU No. - . The standard provides guidance to customers about whether a cloud computing arrangement includes a software license. If the arrangement does include a software license, the software license element of the arrangement should be accounted for in the same manner as the acquisition of other software licenses. We adopted this standard on applying it prospectively to all arrangements entered into or materially modified on or after Adoption of this standard did not have a significant impact on our results of operations or financial position.

 

In the FASB issued ASU No. - When recording the purchase price allocation for a business combination in the financial statements, an acquirer record preliminary amounts when measurements are incomplete as of the end of a reporting period. When the required information is received to finalize the purchase price allocation, the preliminary amounts are adjusted. These adjustments are referred to as measurement-period adjustments. This standard eliminates the requirement to restate prior period financial statements for measurement-period adjustments. Instead, it requires that the cumulative impact of a measurement-period adjustment be recognized in the reporting period in which the adjustment is identified. We adopted this standard on applying it prospectively. Application of this standard did not have a significant impact on our results of operations or financial position.

 

In the FASB issued ASU No. - . The standard is intended to reduce diversity in practice in how certain transactions are classified in the statement of cash flows. We elected to early adopt this standard as of As our consolidated statement of cash flows presentation was in compliance with the new guidance, adoption of this standard had no impact on our consolidated financial statements.

 

In the FASB issued ASU No. - . The standard removes Step of the goodwill impairment test, which requires a company to perform procedures to determine the fair value of a reporting unit's assets and liabilities following the procedure that would be required in determining the fair value of assets acquired and liabilities assumed in a business combination. Instead, a goodwill impairment charge will now be measured as the amount by which a reporting unit's carrying value exceeds its fair value, not to exceed the carrying amount of goodwill.

We elected to early adopt this standard on As we have not been required to complete Step of the goodwill impairment test, we do not anticipate that this standard will have an impact on our consolidated financial statements.

 

In the FASB issued ASU No. - . The standard provides revenue recognition guidance for any entity that enters into contracts with customers to transfer goods or services or enters into contracts for the transfer of non-financial assets, unless those contracts are within the scope of other accounting standards. The standard also expands the required financial statement disclosures regarding revenue recognition. The new guidance is effective for us on In addition, in the FASB issued ASU No. - , in the FASB issued ASU No. - and in the FASB issued ASU No. - . These standards are intended to clarify aspects of ASU No. - and are effective for us upon adoption of ASU No. - We are currently assessing the impact of these standards on our consolidated financial statements, as well as the method of transition that we will use in adopting the new guidance.

 

In the FASB issued ASU - . This provision would require inventory that was previously recorded using -in, -out (“FIFO”) to be recorded at lower of cost or net realizable value. Net realizable value is the estimated selling price in the ordinary course of business, less reasonably predictable costs of completion, disposal, and transportation. This guidance is effective for fiscal years beginning after and interim periods within those years, which for us will be The amendments in this guidance should be applied prospectively with earlier application permitted as of the beginning of an interim or annual period. We are currently evaluating the impact of the adoption of ASU - and whether it would have a material impact on our consolidated financial statements.

 

In the FASB issued ASU No. - . The standard is intended to improve the recognition, measurement, presentation and disclosure of financial instruments. This ASU is effective using the modified retrospective approach for annual periods and interim periods within those annual periods beginning after which for us is Early adoption is permitted. We do not expect the application of this standard to have a significant impact on our result of operations or financial position.

 

In the FASB issued ASU - ), which amends the existing guidance to require lessees to recognize lease assets and lease liabilities from operating leases on the balance sheet. This ASU is effective using the modified retrospective approach for annual periods and interim periods within those annual periods beginning after which for us is Early adoption is permitted. We are currently evaluating the impact of the adoption of ASU - on our consolidated financial statements.

 

In the FASB issued ASU - . This update includes provisions intended to simplify various aspects related to how share-based payments are accounted for and presented in the financial statements. This ASU is effective for annual periods and interim periods within those annual periods beginning after which for us is Early adoption is permitted. We are currently evaluating the impact of the adoption of ASU - on our consolidated financial statements.

 

In the FASB issued ASU - . The amendments in this update replace the incurred loss impairment methodology in current GAAP with a methodology that reflects expected credit losses. This update is intended to provide financial statement users with more decision-useful information about the expected credit losses. This ASU is effective for annual periods and interim periods for those annual periods beginning after which for us is Entities early adopt beginning after We are currently evaluating the impact of the adoption of ASU - on our consolidated financial statements.

 

In the FASB issued ASU No. - . The standard revises the definition of a business, which affects many areas of accounting such as business combinations and disposals and goodwill impairment. The revised definition of a business will likely result in more acquisitions being accounted for as asset acquisitions, as opposed to business combinations. This ASU is effective for annual periods and interim periods for those annual periods beginning after which for us is required to be applied prospectively to transactions occurring on or after the effective date.