Note 4 - New Accounting Pronouncements |
3 Months Ended |
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Mar. 31, 2018 | |
Notes to Financial Statements | |
Description of New Accounting Pronouncements Not yet Adopted [Text Block] | 4 New Accounting Pronouncements: May 2014, the FASB issued Accounting Standards Update (ASU) No. 2014 -09, Revenue from Contracts with Customers (ASU 2014 -09 ), which supersedes nearly all existing revenue recognition guidance under U.S. GAAP. The guidance requires entities to recognize revenue using the following five -step model: identify the contract with a customer, identify the performance obligations in the contract, determine the transaction price, allocate the transaction price to the performance obligations in the contract, and recognize revenue as the entity satisfies each performance obligation. Adoption of this standard could result in retrospective application, either in the form of recasting all prior periods presented or a cumulative adjustment to equity in the period of adoption. On January 1, 2018 we adopted ASU 2014 -09 using the full retrospective method. The Partnership completed its review of a representative sample of revenue contracts covering its material revenue streams and determined that there is no impact to its consolidated financial statements, results of operations or liquidity. When comparing the Partnership’s historical revenue recognition to the newly applied revenue recognition under Accounting Standards Codification (“ASC”) 606, there was no change to the amount or timing of revenue recognized. Therefore, no quantitative adjustment was required to be made to the prior periods presented in the unaudited condensed consolidated financial statements after the adoption of ASC 606. Upon adoption the Partnership had not altered its existing information technology and internal controls outside of the contract review processes in order to identify impacts of future revenue contracts the Partnership may enter into.Accounting Policy two to four months after the production month, the Partnership accrues for revenue earned but not received by estimating production volumes and product prices. Revenues from Lease Bonus are recorded upon receipt. The Lease Bonus is separate from the lease itself and is recognized as revenue to the Partnership upon receipt of payment. In February 2016, the FASB issued ASU 2016 -02, which requires lessees to record most leases on the balance sheet. Under the new guidance, lease classification as either a finance lease or an operating lease will determine how lease-related revenue and expense are recognized. The guidance is effective for fiscal years beginning after December 15, 2018, including interim periods within those fiscal years. The Partnership has lease commitments of $3.0 million that we believe would be subject to capitalization under ASU 2016 -02. The lease obligations that will be in place upon adoption of ASU 2016 -02 may be significantly different than our current obligations. We are still evaluating the impact of ASU 2016 -02 on our consolidated financial statements. |