Note 13 - New Accounting Standards

3 Months Ended

Mar. 31, 2018

Notes to Financial Statements

New Accounting Pronouncements and Changes in Accounting Principles [Text Block]

13. New Accounting Standards

In

May 2014,

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

No.

2014

-

09,

(Topic

606

) “Revenue from Contracts with Customers.” Topic

606

supersedes the revenue recognition requirement in Topic “Revenue Recognition” (Topic

605

), and requires entities to recognize revenue when control of the promised good or services is transferred to customers at an amount that reflects the consideration to which the entity expects to be entitled to in exchange for goods or services.  The Company adopted this standard in its fiscal

2018

first

quarter using the modified retrospective approach.  See Note

3

for further details.

In

February 2016,

the FASB issued ASU

2016

-

02,

Leases (Topic

842

),

in order to increase transparency and comparability among organizations by recognizing lease assets and lease liabilities on the balance sheet for those leases classified as operating leases under previous GAAP. ASU

2016

-

02

requires that a lessee should recognize a liability to make lease payments (the lease liability) and a right-of-use asset representing its right to use the underlying asset for the lease term on the balance sheet. ASU

2016

-

02

is effective for fiscal years beginning after

December 15, 2018 (

including interim periods within those periods) using a modified retrospective approach and early adoption is permitted. The Company will adopt ASU

2016

-

02

in the

first

quarter of

2019.Although

the Company is in the process of evaluating the impact of adoption of the ASU on its consolidated financial statements, the Company currently believes the most significant change will be related to the recognition of right-of-use assets and lease liabilities on the Company's balance sheet for real estate operating leases.

In

March 2016,

the FASB issued ASU

2016

-

09,

Compensation – Stock Compensation (Topic

718

): Improvement to Employee Share-based Payment Accounting

.  ASU

2016

-

09

simplifies 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.  Additionally, in

May 2017,

the FASB issued ASU

2017

-

09,

Compensation – Stock Compensation (Topic

718

). 

ASU

2017

-

09

clarifies which changes to the terms or conditions of a share-based payment award require an entity to apply modification accounting under ASC

718.

The Company adopted ASU

2016

-

09

in its fiscal

2017

first

quarter.  It did

not

have a material impact.  ASU

2017

-

09

is effective for annual and interim reporting periods beginning after

December 15, 2017. 

The Company adopted ASU

2017

-

09

in its fiscal

2018

first

quarter.  It did

not

have a material impact.

In

June 2016,

the FASB issued ASU

2016

-

13,

Financial Instruments - Credit Losses (Topic

326

).

The new standard amends guidance on reporting credit losses for assets held at amortized cost basis and available-for-sale debt securities. This ASU is effective for financial statements issued for fiscal years beginning after

December 15, 2018,

including interim periods within those fiscal years. The Company is currently evaluating this guidance to determine the impact it

may

have on its consolidated financial statements.

In

August 2016,

the FASB issued ASU

No.

2016

-

15,

Statement of Cash Flows (

Topic

230

):

Classification of Certain Cash Receipts and Cash Payments

. ASU

2016

-

15

clarifies how certain cash receipts and payments should be presented in the statement of cash flows. The guidance requires application using a retrospective transition method. The Company adopted ASU

2016

-

15

in its fiscal

2018

first

quarter. It did

not

have a material impact.

In

January 2017,

the FASB issued ASU

No.

2017

-

01,

“

Business Combinations”

(Topic

805

) to clarify the definition of a business to assist entities with evaluating whether transactions should be accounted for as acquisitions (or disposals) of assets or businesses.  The Company adopted ASU

2017

-

01

in its fiscal

2018

first

quarter. It did

not

have a material impact.