Note B - Recent Accounting Pronouncements

3 Months Ended

Mar. 31, 2021

Notes to Financial Statements

Accounting Standards Update and Change in Accounting Principle [Text Block]

Note B - Recent Accounting Pronouncements

Recently adopted accounting pronouncements

Income taxes

In

December 2019,

the Financial Accounting Standards Board (“FASB”) issued ASU

2019

-

12,

which enhances and simplifies various aspects of the income tax accounting guidance, including requirements such as a tax basis step-up in goodwill obtained in a transaction that is

not

a business combination, ownership changes in investments, and interim-period accounting for enacted changes in tax law. The standard will be effective for us in the fiscal year

2021,

although early adoption is permitted. We adopted this accounting standard update (“ASU”) as of

January

1st,

2021.

  The adoption did

not

have a material impact on our condensed consolidated financial statements.

Defined Pension Plan

 

In

August 2018,

the FASB issued ASU

2018

-

14,

 

Compensation

—

Retirement Benefits

—

Defined Benefit Plans

—

General (

Topic

715

-

20

): Disclosure Framework

—

Changes to the Disclosure Requirements for Defined Benefit Plans

 

(

“

ASU

2018

-

14

”

)

, which modifies the disclosure requirements for defined benefit pension plans and other postretirement plans. ASU

2018

-

14

is effective for fiscal years ending after

December 15, 2020,

and earlier adoption is permitted. We adopted ASU

2018

-

14

as of

December 31, 2020. 

The adoption did

not

have a material impact on our consolidated financial statements.

Reference Rate Reform

In

March 2020,

the FASB issued ASU

2020

-

04,

“

Reference Rate Reform (Topic

848

) – Facilitation of the Effects of Reference Rate Reform on Financial Reporting Summary

”.  This ASU provides temporary optional guidance to ease the potential burden in accounting for reference rate reform. London Inter-bank Offered Rate (“LIBOR”) and other inter-bank offered rates are widely used benchmarks or reference rates in the United States and globally.  With global capital markets expected to move away from LIBOR and other inter-bank offered rates and toward more observable or transaction-based rates that are less susceptible to manipulation, the FASB launched a broad project in late

2018

to address potential accounting challenges expected to arise from the transition.  The new guidance provides optional expedients and exceptions for applying generally accepted accounting principles to contract modifications and hedging relationships, subject to meeting certain criteria, that reference LIBOR or another reference rate expected to be discontinued.  This ASU is effective

March 12, 2020

through

December 31, 2022. 

We adopted this ASU on

March 12, 2020

and it did

not

have a  material impact on our condensed consolidated financial statements.