| Recent Accounting Pronouncements |
Note 3 – Recent
Accounting Pronouncements
| Title
and reference |
|
Prescribed |
|
Commentary |
| Effective
Date |
| ASU No.
2105-16, “Business Combinations” (Topic 805): Simplifying the Accounting for Measurement-Period Adjustments. |
|
Fiscal
years beginning after December 15, 2015, including interim periods within those fiscal years. |
|
In
September 2015, the FASB issued ASU No. 2015-16, “Business Combinations” (Topic 805): Simplifying the Accounting
for Measurement-Period Adjustments (“ASU 2015-16”). ASU 2105-16 requires that (i) an acquirer recognize adjustments
to provisional amounts that are identified during the measurement period in the reporting period in which the adjustment amounts
are determined, (ii) the acquirer record, in the same period’s financial statements, the effect on earnings of changes
in depreciation, amortization, or other income effects, if any, as a result of the change to the provisional amounts, calculated
as if the accounting had been completed at the acquisition date, and (iii) an entity present separately on the face of the
income statement or disclose in the notes the portion of the amount recorded in current-period earnings by line item that
would have been recorded in previous reporting periods if the adjustment to the provisional amounts had been recognized as
of the acquisition date. The amendments in this Update apply to all entities that have reported provisional amounts for items
in a business combination for which the accounting is incomplete by the end of the reporting period in which the combination
occurs and during the measurement period have an adjustment to provisional amounts recognized. The amendments in this guidance
are effective for fiscal years beginning after December 15, 2015, including interim periods within those fiscal years. The
amendments in this guidance are not expected to have a significant impact on our Financial Statements upon adoption. |
| ASU
No. 2015-15, “Interest—Imputation of Interest” (Subtopic 835-30): Presentation and Subsequent Measurement
of Debt Issuance Costs Associated with Line-of-Credit Arrangements. |
|
Effective
upon issuance |
|
In
August 2015, the FASB issued ASU No. 2015-15, “Interest—Imputation of Interest” (Subtopic 835-30): Presentation
and Subsequent Measurement of Debt Issuance Costs Associated with Line-of-Credit Arrangements (“ASU 2015-15). In ASU
2015 -15, the SEC adds guidance to Subtopic 835-30 pursuant to the SEC Staff Announcement at the June 18, 2015 Emerging Issues
Task Force meeting about the presentation and subsequent measurement of debt issuance costs associated with line-of-credit
arrangements. In April 2015, the FASB issued ASU 2015-03, “Interest—Imputation of Interest” (Subtopic 835-30):
Simplifying the Presentation of Debt Issuance Costs, which requires entities to present debt issuance costs related to a recognized
debt liability as a direct deduction from the carrying amount of that debt liability. According to the SEC, the guidance in
ASU 2015-03 does not address presentation or subsequent measurement of debt issuance costs related to line-of-credit arrangements.
Given the absence of authoritative guidance within ASU 2015-03 for debt issuance costs related to line-of-credit arrangements,
the SEC staff would not object to an entity deferring and presenting debt issuance costs as an asset and subsequently amortizing
the deferred debt issuance costs ratably over the term of the line-of-credit arrangement, regardless of whether there are
any outstanding borrowings on the line-of-credit arrangement. The guidance in ASU 2015-03 is effective for fiscal years beginning
after December 15, 2015, including interim periods within those fiscal years. The guidance in ASU 2015-15 is effective upon
issuance. The guidance in ASU 2015-15 and ASU 2015-03 are not expected to have a significant impact on our Financial Statements
upon adoption. |
| ASU No.
2015-14, “Revenue from Contracts with Customers” (Topic 606): Deferral of the Effective Date. |
|
Effective
upon issuance |
|
In
August 2015, the FASB issued ASU No. 2015-14, “Revenue from Contracts with Customers” (Topic 606): Deferral of
the Effective Date (“ASU 2015-14”). ASU 2015-14 effectively defers the effective date of ASU No. 2014-09, “Revenue
from Contracts with Customers (Topic 606), by one year for all entities. In May 2014, the FASB issued ASU 2014-09 with an
effective date for annual reporting periods beginning after December 15, 2016, including interim periods within that reporting
period for public business entities, certain not-for-profit entities, and certain employee benefit plans. The effective date
for all other entities was for annual reporting periods beginning after December 15, 2017, and interim periods within annual
periods beginning after December 15, 2018. ASU 2015-14 is effective upon issuance. ASU 2015-14 is not expected to have a significant
impact on our Financial Statements. |
| Accounting
Standard Update (“ASU”) No. 2015-11, “Inventory” (Topic 330): Simplifying the Measurement of Inventory. |
|
Fiscal
years beginning after December 15, 2016 and for interim periods therein. |
|
In
July 2015, the FASB issued ASU No. 2015-11, “Inventory” (Topic 330): Simplifying the Measurement of Inventory
(“ASU 2015-11”). ASU 2015-11 simplifies the measurement of inventory by requiring certain inventory to be subsequently
measured at the lower of cost and net realizable value. The amendments in this guidance are effective for fiscal years beginning
after December 15, 2016 and for interim periods therein and are not expected to have a significant impact on our Financial
Statements upon adoption. |
| ASU No.
2015-03, “Interest - Imputation of Interest” (Subtopic 835-30): Simplifying the Presentation of Debt Issuance
Costs. |
|
Fiscal
years beginning after December 15, 2015, and interim periods within those fiscal years |
|
In
April 2015, the FASB issued ASU No. 2015-03, “Interest - Imputation of Interest” (Subtopic 835-30): Simplifying
the Presentation of Debt Issuance Costs ("ASU 2015-.03"). ASU 2015-03 changes the presentation of debt issuance
costs from an asset to a direct deduction from the related liability. This guidance, which is effective for fiscal years beginning
after December 15, 2015, and interim periods within those fiscal years, may be early adopted for financial statements that
have not been previously issued and its provisions are to be retrospectively applied as a change in accounting principle.
Upon adoption, this guidance is expected to decrease Other Assets, which includes our deferred financing costs on our debt
obligations, and comparably decrease Long-term debt on our Balance Sheets. This guidance is not expected to have any impact
on our results of operations or cash flows. |
| ASU No.
2015-04, “Compensation - Retirement Benefits” (Topic 715): Practical Expedient for the Measurement Date of an
Employer’s Defined Benefit Obligation and Plan Assets. |
|
Interim
and fiscal periods beginning after December 15, 2015. |
|
In
April 2015, the FASB issued ASU No. 2015-04, “Compensation - Retirement Benefits” (Topic 715). ASU 2015-04 will
allow employers with fiscal year ends that do not coincide with a calendar month end to make an accounting policy election
to measure defined benefit plan assets and obligations as of the end of the month closest to their fiscal year ends (i.e.,
on an alternative measurement date). An employer that makes this election must consistently apply the practical expedient
from year to year and to all of its defined benefit plans. ASU 2015-04 will be effective for interim and fiscal periods beginning
after December 15, 2015; prospective application is required and early adoption is permitted. This guidance is not expected
to have any impact on our financial position, results of operations or cash flows. |
| ASU No.
2015-02, “Consolidation” (Topic 810): Amendments to the Consolidation Process. |
|
Annual
periods, and interim periods within those annual periods, beginning after December 15, 2015. |
|
In
February 2015, the FASB issued ASU No. 2015-02, "Consolidation" (Topic 810): Amendments to the Consolidation Process
("ASU 2015-02") . ASU 2015-02 amends the consolidation analysis for limited partnerships and other variable interest
entities ("VIEs"). This guidance, which is effective for annual periods, and interim periods within those annual
periods, beginning after December 15, 2015, is not expected to have a significant impact on our Financial Statements upon
adoption. |
| ASU
No. 2015-01, Income Statement - “Extraordinary and Unusual Items” (Subtopic 225-20): Simplifying the Income Statement
Presentation by Eliminating the Concept of Extraordinary Items. |
|
Fiscal
years, and interim periods within those fiscal years, beginning after December 15, 2015. |
|
In
January 2015, the FASB issued ASU No. 2015-01, Income Statement - “Extraordinary and Unusual Items” (Subtopic
225-20): Simplifying the Income Statement Presentation by Eliminating the Concept of Extraordinary Items ("ASU 2015-01").
ASU 2015-01 eliminates from GAAP the concept of extraordinary items. This guidance is effective for fiscal years, and interim
periods within those fiscal years, beginning after December 15, 2015. The guidance may be applied prospectively or retrospectively
and early adoption is permitted provided that the guidance is applied from the beginning of the fiscal year of adoption. This
guidance is not expected to have a material impact on our Financial Statements upon adoption. |
| ASU No.
2014-15, “Presentation of Financial Statements - Going Concern” (Subtopic 205-40): Disclosure of Uncertainty about
an Entity's Ability to Continue as a Going Concern. |
|
Fiscal
years, and interim periods within those years, beginning on or after December 15, 2016, with early adoption permitted. |
|
In
August 2014, the FASB issued ASU No. 2014-15, “Presentation of Financial Statements - Going Concern” (Subtopic
205-40): Disclosure of Uncertainty about an Entity's Ability to Continue as a Going Concern ("ASU 2014-15"). ASU
2014-15 provides guidance that establishes management's responsibility to evaluate whether there is substantial doubt about
an entity's ability to continue as a going concern and setting rules for how this information should be disclosed in the financial
statements. This guidance is effective for fiscal years, and interim periods within those years, beginning on or after December
15, 2016, with early adoption permitted. We will adopt this guidance on January 1, 2017 and do not expect it to have a material
impact on our Financial Statements upon adoption. |
| ASU No.
2014-12, “Compensation - Stock Compensation”(Topic 718): Accounting for Share-based Payments. |
|
Annual
and interim periods within the annual period beginning after December 15, 2015. |
|
In
June 2014, the FASB issued ASU No. 2014-12, “Compensation - Stock Compensation” (Topic 718): Accounting for Share-based
Payments ("ASU 2014-12"). ASU 2014-12 provides guidance that impacts the accounting for share-based performance
awards. This guidance requires that a performance target that affects vesting that could be achieved after the requisite service
period be treated as a performance condition. As such, the performance target should not be reflected in estimating the grant-date
fair value of the award. This guidance is effective for annual and interim periods within the annual period beginning after
December 15, 2015. We do not currently have share-based payment awards that fall within the scope of this guidance and therefore
do not anticipate an impact on our Financial Statements upon adoption. |
| ASU
No. 2015-17, "Income Taxes (Topic 740): Balance Sheet Classification of Deferred Taxes" ("ASU 2015-17") |
|
Fiscal
years beginning on or after December 15, 2016, with early adoption permitted. |
|
In November 2015, the
FASB issued ASU No. 2015-17, "Income Taxes (Topic 740): Balance Sheet Classification of Deferred Taxes" ("ASU
2015-17"). Topic 740, Income Taxes, requires an entity to separate deferred income tax liabilities and assets into current
and noncurrent amounts in a classified statement of financial position. Deferred tax liabilities and assets are classified
as current or noncurrent based on the classification of the related asset or liability for financial reporting. Deferred tax
liabilities and assets that are not related to an asset or liability for financial reporting are classified according to the
expected reversal date of the temporary difference. To simplify the presentation of deferred income taxes, the amendments
in ASU 2015-17 require that deferred income tax liabilities and assets be classified as noncurrent in a classified statement
of financial position. For public business entities, the amendments in this update are effective for financial statements
issued for annual periods beginning after December 15, 2016, and interim periods within those annual periods. We do not expect
the adoption of ASU 2015-17 to have a material impact on our consolidated financial statements. |
| Accounting
Standards Update ("ASU") No. 2016-02, "Leases (Topic 842)" ("ASU 2016-02") |
|
Annual
and interim periods within the annual period beginning after December 15, 2018. |
|
In February 2016, the FASB issued
Accounting Standards Update ("ASU") No. 2016-02, "Leases (Topic 842)" ("ASU 2016-02"). The amendments
in this update create Topic 842, Leases, and supersede the leases requirements in Topic 840, Leases. Topic 842 specifies the
accounting for leases. The objective of Topic 842 is to establish the principles that lessees and lessors shall apply to report
useful information to users of financial statements about the amount, timing, and uncertainty of cash flows arising from a
lease. The main difference between Topic 842 and Topic 840 is the recognition of lease assets and lease liabilities for those
leases classified as operating leases under Topic 840. Topic 842 retains a distinction between finance leases and operating
leases. The classification criteria for distinguishing between finance leases and operating leases are substantially similar
to the classification criteria for distinguishing between capital leases and operating leases in the previous leases guidance.
The result of retaining a distinction between finance leases and operating leases is that under the lessee accounting model
in Topic 842, the effect of leases in the statement of comprehensive income and the statement of cash flows is largely unchanged
from previous GAAP. The amendments in ASU 2016-02 are effective for fiscal years beginning after December 15, 2018, including
interim periods within those fiscal years for public business entities. Early application of the amendments in ASU 2016-02
is permitted. We are currently in the process of evaluating the impact of the adoption of ASU 2016-02 on our consolidated
financial statements. |
|