RECENTLY ISSUED ACCOUNTING PRONOUNCEMENTS

12 Months Ended

Jan. 31, 2020

RECENTLY ISSUED ACCOUNTING PRONOUNCEMENTS

RECENTLY ISSUED ACCOUNTING PRONOUNCEMENTS

NOTE 2 – RECENTLY ISSUED ACCOUNTING PRONOUNCEMENTS

Effective February 1, 2019, the Company adopted ASU 2016-02, “Leases,” as amended, which herein is referred to as “ASC Topic 842.” Accordingly, operating leases with lease terms of more than twelve (12) months have been presented in the consolidated balance sheet as of January 31, 2020 by including assets for the right-of-use and liabilities for the obligations that are created by these leases (see Note 10). The Company elected to apply the transition requirements at the adoption date rather than at the beginning of the earliest comparative period presented herein. The aggregate amount of right-of-use assets and the related lease liabilities added to the Company’s consolidated balance sheet as of February 1, 2019 was $1.3 million. There was no cumulative effect adjustment that had to be made to retained earnings at the adoption date, and prior year consolidated financial statements were not restated. The new accounting for leases did not have a material effect on the Company’s operating results for Fiscal 2020.

In 2016, the Financial Accounting Standards Board (the “FASB”) issued ASU 2016-13, Measurement of Credit Losses on Financial Instruments. The scope of this new standard covers, among other provisions, the methods that businesses shall use to estimate amounts of uncollectible notes and accounts receivable. As subsequently amended, the Company does not expect that the requirements of this new guidance, which becomes effective for the Company on February 1, 2020, will materially affect its consolidated financial statements.

There are no other recently issued accounting pronouncements that have not yet been adopted that the Company considers material to its consolidated financial statements.