RECENTLY ISSUED ACCOUNTING PRONOUNCEMENTS

9 Months Ended

Sep. 24, 2016

RECENTLY ISSUED ACCOUNTING PRONOUNCEMENTS.

RECENTLY ISSUED ACCOUNTING PRONOUNCEMENTS

NOTE 11 — RECENTLY ISSUED ACCOUNTING PRONOUCEMENTS

In May 2014, FASB issued ASU 2014-09, Revenue from Contracts with Customers. This ASU provides a five-step analysis of transactions to determine when and how revenue is recognized. The core principle is that a company should recognize revenue to depict the transfer of promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services. ASU 2014-09 (as updated by ASU 2015-14, ASU 2016-08, ASU 2016-10, and ASU 2016-12) is for annual periods, and interim periods within those years, beginning after December 15, 2017, with early adoption permitted for years beginning after December 15, 2016, to be applied retrospectively to each period presented or as a cumulative-effect adjustment as of the date of adoption. The Company is evaluating the effects of adopting this new accounting guidance and a transition method for this update has not been selected.

In January 2016, the FASB issued ASU 2016-01 to update the standard on financial instruments. The update includes revisions to an entity’s accounting related to the classification and measurement of investments in equity securities, including recognition of changes in fair value of investment in net income. It also amends certain disclosure requirements. The update is effective for annual periods, and interim periods within those annual periods, beginning on or after December 15, 2017. Upon adoption, entities will be required to make a cumulative-effect adjustment to the statement of financial position as of the beginning of the first reporting period in which the guidance is effective. The requirements of this ASU and its impact on the Company are currently being evaluated.

In March 2016, the FASB issued ASU 2016-09 to update the standard on Compensation-Stock Compensation as part of improvement and simplification which involve several aspects of the accounting for share-based payment transactions, including the income tax consequences, classification of awards as either equity or liabilities, and classification on the statement of cash flows. This update is effective for annual periods beginning after December 15, 2016, and interim periods within those annual periods. The requirements of this ASU and its impact on the Company are currently being evaluated.