Quarterly report pursuant to Section 13 or 15(d)

Significant Accounting Policies (Policies)

v3.8.0.1
Significant Accounting Policies (Policies)
3 Months Ended
Sep. 30, 2017
Accounting Policies [Abstract]  
New Accounting Pronouncements, Policy [Policy Text Block]
Recently Adopted Accounting Pronouncements
 
In
March
2016,
the FASB issued ASU
2016
-
09,
Improvements to Employee Share-Based Payment Accounting
. This standard includes provisions intended to simplify various aspects related to how share-based payments are accounted for and presented in the financial statements. We adopted this standard on
July 1, 2017.
The Company expects its reported provision for income taxes to become more volatile, dependent upon market prices and volume of share-based compensation exercises and vesting of options.
 
In
July
2015,
the FASB issued ASU
2015
-
11,
Simplifying the Measurement of Inventory
. This provision would require inventory that was previously recorded using
first
-in,
first
-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. We adopted this standard on
July 1, 2017.
The application of this standard did
not
have significant impact on our financial statements.
 
Pronouncements Issued But
Not
Yet Adopted
 
In
May 2014,
the FASB issued ASU
No.
2014
-
09,
Revenue from Contracts with Customers
. 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
July 1, 2018.
In addition, in
March 2016,
the FASB issued ASU
No.
2016
-
08,
Principal versus Agent Considerations (Reporting Revenue Gross versus Net)
, in
April 2016,
the FASB issued ASU
No.
2016
-
10,
Identifying Performance Obligations and Licensing,
and in
May 2016,
the FASB issued ASU
No.
2016
-
12,
Narrow-Scope Improvements and Practical
Expedients
. These standards are intended to clarify aspects of ASU
No.
2014
-
09
and are effective for us upon adoption of ASU
No.
2014
-
09.
The Company’s approach to implementing the new standard includes performing a detailed review of key contracts representative of its different businesses, and comparing historical accounting policies and practices to the new standard. In addition to expanded disclosures associated with the new standard, the Company is continuing to assess the impact on our consolidated financial statements. The guidance permits
two
methods of adoption, retrospectively to each prior reporting period presented (full retrospective method), or retrospectively with the cumulative effect of initially applying the guidance recognized at the date of initial application (the cumulative catch-up transition method). We currently anticipate that we will adopt the standards using cumulative catch-up transition method.
 
In
January 2016,
the FASB issued ASU
No.
2016
-
01,
Recognition and Measurement of Financial Assets and Financial Liabilities
. 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
December 15, 2017,
which for us is
July 1, 2018.
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
February, 2016,
the FASB issued ASU
2016
-
02,
Leases (Topic
842
), 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
December 15, 2018,
which for us is
July 1, 2019.
Early adoption is permitted. We are currently evaluating the impact of the adoption of ASU
2016
-
02
on our consolidated financial statements.
 
In
June 2016,
the
FASB issued ASU
2016
-
13,
Financial Instruments - Credit Losses (Topic
326
), Measurement of Credit Losses on Financial Instruments
. 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
December 15, 2019,
which for us is
July 1, 2020.
Entities
may
early adopt beginning after
December 15, 2018.
We are currently evaluating the impact of the adoption of ASU
2016
-
13
on our consolidated financial statements.
 
In
January 2017,
the FASB issued ASU
No.
2017
-
01,
Clarifying the Definition of a Business
. 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
December 15, 2017,
which for us is
July 1, 2018.
The amendments in this guidance are required to be applied prospectively to transactions occurring on or after the effective date.
 
In
May 2017,
the FASB issued ASU
No.
2017
-
09,
Scope of Modification Accounting
. The standard provides guidance about which changes to the terms or conditions of a share-based payment award require modification accounting, which
may
result in a different fair value for the award. This ASU is effective for annual periods and interim periods for those annual periods beginning after
December 15, 2017,
which for us is
July 1, 2018.
The guidance is required to be applied prospectively to awards modified on or after the effective date. Historically, modifications to our share-based payment awards have been rare. As such, we do
not
expect the application of this standard to have a significant impact on our results of operations or financial position.