XML 25 R24.htm IDEA: XBRL DOCUMENT v3.19.3.a.u2
The Company and its Significant Accounting Policies (Policies)
6 Months Ended
Dec. 31, 2019
Organization Consolidation And Presentation Of Financial Statements [Abstract]  
Basis of Presentation

Basis of Presentation

 

The unaudited condensed consolidated financial statements include the accounts of the Company and its wholly-owned subsidiaries. All significant inter-company transactions and balances have been eliminated in consolidation.

The accompanying unaudited condensed consolidated financial statements have been prepared in accordance with United States generally accepted accounting principles (“GAAP”), pursuant to the rules and regulations of the Securities and Exchange Commission (the “SEC”). Certain information and note disclosures have been condensed or omitted pursuant to such rules and regulations. The unaudited condensed consolidated financial statements have been prepared on the same basis as the annual financial statements and, in the opinion of management, reflect all adjustments, which include only normal recurring adjustments, necessary for a fair presentation of the periods presented. The results for the six months ended December 31, 2019 are not necessarily indicative of the results to be expected for the fiscal year ending June 30, 2020, or for any other future interim period or fiscal year.

These unaudited condensed consolidated financial statements should be read in conjunction with the Company’s audited consolidated financial statements and accompanying notes for the fiscal year ended June 30, 2019 included in the Company’s Annual Report on Form 10-K filed with the SEC on August 23, 2019.

Significant Accounting Policies

Significant Accounting Policies

 

During the six months ended December 31, 2019, the Company adopted a new accounting policy related to equity method investments in connection with valuing its equity investment in the China joint venture. The equity method investments that the Company holds are equity securities in investees for which the Company has the ability to exercise significant influence over, but lacks a controlling financial interest in the investee. Equity method investments are measured at cost minus impairment, if any, plus or minus the Company’s share of the equity method investee income or loss. The Company’s proportionate share of the income or loss from the China joint venture, equity method investment is recognized on a one-quarter lag due to the timing of the availability of the China joint venture’s financial records. Profit earned by the Company to be eliminated until it is realized and such profits would generally be considered realized when the inventory has been sold through to third parties.

 

Other than the policy adoptment noted above and the recent accounting pronouncements adopted and discussed below under Accounting Pronouncements Recently Adopted, there have been no changes in the Company’s significant accounting policies during the six months ended December 31, 2019 compared to the significant accounting policies described in its Annual Report on Form 10-K for the fiscal year ended June 30, 2019.