Quarterly report pursuant to Section 13 or 15(d)

12. Recently Issued Accounting Standards

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12. Recently Issued Accounting Standards
 9 Months Ended
Sep. 30, 2016
Accounting Changes and Error Corrections [Abstract]  
Recently Issued Accounting Standards

The following table provides a brief description of recently issued accounting standards not yet adopted:

 

Standard Description Effective Date Effect on the Financial Statements
In August 2014, the Financial Accounting Standards Board (the “FASB”) issued amended guidance related to disclosure about the ability of an entity to continue as a going concern. While current practice regarding such disclosures is often guided by U.S. auditing standards, the new standard explicitly requires management of all entities to evaluate whether there is substantial doubt about the entity’s ability to continue as a going concern and, if necessary, to provide related footnote disclosures. December 31, 2016, with earlier application permitted. The Company does not expect this new standard to have a significant impact on its consolidated financial statements. See note 1 regarding management’s current disclosures regarding the Company’s ability to continue as a going concern.
In July 2015, the FASB issued an update related to inventory. The new update requires that inventory be measured at the lower of cost or net realizable value. January 1, 2017, with earlier application permitted as of the beginning of an interim or annual reporting period. The Company does not expect the provisions of this update to have any impact on its consolidated financial statements.
In May 2014 the FASB issued amended guidance related to revenue from contracts with customers. In August 2014, the FASB issued updated guidance deferring the effective date of the revenue recognition standard. The new standard introduces a new principles-based framework for revenue recognition and disclosure January 1, 2018, with earlier application permitted for reporting periods beginning after December 15, 2016. The Company has not yet determined the impact that this standard will have on its consolidated financial statements.
In February 2016, the FASB issued an ASU that amends the accounting for leases. Under the new standard, a lessee will recognize assets and liabilities on its balance sheet for most leases but will recognize expense in its statement of operations similar to current lease accounting. January 1, 2019, with early adoption permitted. The Company has not yet determined the impact that this standard will have on its consolidated financial statements.