Note 13 - New Accounting Standards and Updates from the Securities Exchange Commission ("SEC")

3 Months Ended

Apr. 03, 2021

Notes to Financial Statements

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

13. New Accounting Standards and Updates from the Securities Exchange Commission ( “ SEC ” )

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. In

February 2020,

the FASB issued ASU

2020

-

02,

Financial Instruments-Credit Losses (Topic

326

) and Leases (Topic

842

) - Amendments to SEC Paragraphs Pursuant to SEC Staff Accounting Bulletin

No.

119

and Update to SEC Section on Effective Date Related to Accounting Standards Update

No.

2016

-

02,

Leases (Topic

842

),

 which amends the effective date of the original pronouncement for smaller reporting companies.  ASU

2016

-

13

and its amendments will be effective for the Company for interim and annual periods in fiscal years beginning after

December 15, 2022.  

The Company believes the adoption will modify the way the Company analyzes financial instruments, but it does

not

anticipate a material impact on results of operations. The Company is in the process of determining the effects the adoption will have on its condensed consolidated financial statements.

In

March 2020,

the FASB issued ASU

No.

2020

-

04,

Reference Rate Reform (Topic

848

): Facilitation of the Effects of Reference Rate Reform on Financial Reporting.

This standard only applies to contracts and other transactions that reference London Interbank Offered Rate (LIBOR) or another reference rate expected to be discontinued due to reference rate reform. This guidance provides temporary optional expedients and exceptions to accounting guidance on contract modifications and hedge accounting to ease entities' financial reporting burdens as the market transitions from the LIBOR and other interbank offered rates to alternative reference rates. The Company

may

elect to apply the amendments prospectively through

December 31, 2022.

The Company is currently evaluating the impact this guidance will have on its condensed consolidated financial statements and related disclosures.