Recent Accounting Pronouncements

6 Months Ended

Jun. 30, 2014

Accounting Changes And Error Corrections [Abstract]

Recent Accounting Pronouncements

8. Recent Accounting Pronouncements

In May 2014, the Financial Standards Board (“FASB”) and the International Accounting Standards Board (“IASB”) have jointly issued a new revenue recognition standard, Accounting Standard Update (“ASU”) No. 2019-09, “Revenue from Contracts with Customers”, that will supersede virtually all revenue recognition guidance in GAAP and International Financial Reporting Standards (“IFRS”). This guidance has an effective date for public companies for annual and interim periods beginning after December 15, 2016, with early adoption not permitted. The standard is intended to increase comparability across industries and jurisdictions. To aid in this happening the boards are creating joint transition groups. Separately, the American Institute of Certified Public Accountants (“AICPA”) has formed sub-groups to focus on implementation issues involving broker-dealers, depository institutions, insurance companies and investment companies. The underlying principle of the new standard is that a business or other organization will recognize revenue to depict the transfer of promised goods or services to customers in an amount that reflects what it expects in exchange for the goods or services. The standard also requires more detailed disclosures and provides additional guidance for transactions that were not addressed completely in the prior accounting guidance. The Company is currently evaluating this guidance and the impact it will have on future consolidated financial statements. At this time the impact is unknown.

In June 2014, the FASB made a decision to require insurance companies to make additional disclosures about short-term duration contracts to make their financial statements more transparent. There is currently no effective date set for this guidance, but the recommendation is for reporting periods after December 15, 2014 for public entities. The Company believes that it will be reasonably able to comply with these requirements.