Note 16 - Recent Accounting Pronoucements

6 Months Ended

Jun. 30, 2020

Notes to Financial Statements

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

1 6 . RECENT ACCOUNTING PRONOUCEMENTS

In

June 2016,

the FASB issued ASU

2016

-

13

to update the methodology used to measure current expected credit losses (CECL). This ASU apples to financial assets measured at amortized cost, including loans, held-to-maturity debt securities, net investments in leases, and trade accounts receivable as well as certain off-balance sheet exposures, such as loan commitments. This ASU requires consideration of a broader range of reasonable and supportable information to explain credit loss estimates. The guidance must be adopted using a modified retrospective transition method through a cumulative-effect adjustment to retained earnings/(accumulated deficit) in the period of adoption. ASU

2019

-

10

was subsequently issued delaying the effective date to the

first

quarter of

2023.

The Company is in the process of assessing the impact of the ASU on its consolidated financial statements.

In

August 2018,

the FASB issued ASU

2018

-

13

related to fair value measurement disclosures. This ASU removes the requirement to disclose the amount of and reasons for transfers between Levels

1

and

2

of the fair value hierarchy, the policy for determining that a transfer has occurred, and valuation processes for Level

3

fair value measurements. Additionally, this ASU modifies the disclosures related to the measurement uncertainty for recurring Level

3

fair value measurements (by removing the requirement to disclose sensitivity to future changes) and the timing of liquidation of investee assets (by removing the timing requirements in certain instances). The guidance also requires new disclosures for Level

3

financial assets and liabilities, including the amount and location of unrealized gains and losses recognized in other comprehensive income/(loss) and additional information related to significant unobservable inputs used in determining Level

3

fair value measurements. This ASU was effective beginning in

2020

and did

not

have a significant impact on the Company's consolidated financial statements and related disclosures.

In

August, 2018,

the FASB issued ASU

2018

-

14

which amends ASC Topic

715

to add, remove, and clarify disclosure requirements related to defined benefit pension and other postretirement plans. The ASU's changes related to disclosures are part of the FASB's disclosure framework project which aimed to improve the effectiveness of disclosures in notes to financial statements. This ASU is effective for public business entities for annual reporting periods ending after

December 15, 2020,

with early adoption permitted. The Company expects to adopt the new disclosure requirements on

January 1, 2021.

In

August 2018,

the FASB issued ASU

2018

-

15

related to accounting for implementation costs incurred in hosted cloud computing service arrangements. Under the new guidance, implementation costs incurred in a hosting arrangement that is a service contract should be expensed or capitalized based on the nature of the costs and the project stage during which such costs are incurred. If the implementation costs qualify for capitalization, they must be amortized over the term of the hosting arrangement and assessed for impairment. Companies must disclose the nature of any hosted cloud computing service arrangements. This ASU also provides guidance for balance sheet and income statement presentation of capitalized implementation costs and statement of cash flows presentation for the related payments. The ASU was effective beginning in the

first

quarter of

2020

and did

not

have a significant impact on the Company's consolidated financial statements and related disclosures.

In

December 2019,

the FASB issued ASU

2019

-

12

to simplify the accounting in ASC Topic

740,

Income Taxes

. This guidance removes certain exceptions related to the approach for intraperiod tax allocation, the methodology for calculating income taxes in an interim period, and the recognition of deferred tax liabilities for outside basis differences. The guidance also clarifies and simplifies other areas of ASC Topic

740.

This ASU will be effective beginning in the

first

quarter of

2021.

Early adoption is permitted. Certain adjustments in this update must be applied on a prospective basis, certain amendments must be applied on a retrospective basis, and certain amendments must be applied on a modified retrospective basis through a cumulative-effect adjustment to retained earnings/(accumulated deficit) in the period of adoption. The Company is currently evaluating the impact of the ASU on the Company's consolidated financial statements and related disclosures.

In

March 2020,

the FASB issued ASU

2020

-

04

as an update to provide optional guidance to ease the potential burden in accounting for (or recognizing the effects of) reference rate reform (ASC Topic

848

) on financial reporting. The amendments in the ASU are elective and apply to all entities, subject to meeting certain criteria, that have contracts, hedging relationships, and other transactions that reference LIBOR or another reference rate expected to be discontinued because of reference rate reform. The ASU provides optional expedients and exceptions for applying generally accepted accounting principles (GAAP) to contracts, hedging relationships, and other transactions affected by reference rate reform if certain criteria are met. The ASU is effective through

December 31, 2022.

Management is evaluating its impact on the Company's consolidated financial statements and related disclosures, if elected.