Recently Issued Accounting Pronouncements

12 Months Ended

Dec. 31, 2022

Accounting Changes and Error Corrections [Abstract]

Recently Issued Accounting Pronouncements

Note 20.    Recently Issued Accounting Pronouncements

In December 2019, the Financial Accounting Standards Board issued Accounting Standards Update (ASU) No. 2019-12, Simplifying the Accounting for Income Taxes (Topic 740). This guidance removes certain exceptions to the general principles in Topic 740 and improves consistent application of and simplifies GAAP for other areas of Topic 740 by clarifying and amending existing guidance. This ASU is effective for fiscal years beginning after December 15, 2020, and interim periods within those fiscal years. Adopting the new standard on January 1, 2021 has not impacted the Company’s prior period comparatives and has not had a material impact on the Company’s consolidated financial statements, including its accounting policies, processes and systems.

In March 2020, the Financial Accounting Standards Board issued Accounting Standards Update (“ASU”) No. 2020-04, Facilitation of the Effects of Reference Rate Reform on Financial Reporting (Topic 848). This provides various practical expedients to account for contract modification for loan agreements, lease agreements and derivative instruments currently referencing the London Interbank Offered Rate (“LIBOR”) up to December 31, 2022. In March 2021, the FCA announced that the intended cessation date of the overnight 1-, 3-, 6-, and 12-month tenors of USD LIBOR would be June 30, 2023, which is beyond the current sunset date of Topic 848. In December 2022, the Financial Accounting Standards Board issued ASU No. 2022-06, Deferral of Sunset Date of Topic 848. This extends the use of practical expedients from December 31, 2022 to December 31, 2024 to cover the period where significant modification may take place. To date, we have not required the use of expedients covered by this topic, but we will continue to assess the need for their use through to the revised sunset date. We do not expect there to be a material impact on the Company’s results.