10)	Recently Issued Accounting Pronouncements

Adopted Accounting Pronouncements

Going Concern

August

2014,

the FASB issued ASU No.

2014

15,

“Presentation of Financial Statements – Going Concern” which is authoritative guidance on management’s responsibility to evaluate whether there is substantial doubt about an entity’s ability to continue as a going concern and provide related footnote disclosures, codified in ASC

205

40,

Going Concern

. The guidance provides a definition of the term substantial doubt, requires an evaluation every reporting period including interim periods, provides principles for considering the mitigating effect of management’s plans, requires certain disclosures when substantial doubt is alleviated as a result of consideration of management’s plans, requires an express statement and other disclosures when substantial doubt is not alleviated, and requires an assessment for a period of

one

year after the date that the financial statements are issued (or available to be issued). ASU No.

2014

is effective for annual reporting periods ending after

December

15,

2016.

The Company has adopted this guidance for the year ending

November

30,

2017,

and it will apply to each interim and annual period thereafter. Its adoption has not had a material effect on the Company’s consolidated financial statements.

Inventory

July

2015,

the FASB issued ASU

2015

11,

“Inventory (Topic

330),”

which requires inventory measured using any method other than last-in,

first

-out or the retail inventory method to be subsequently measured at the lower of cost or net realizable value, rather than the lower of cost or market. ASU No.

2015

is effective for fiscal years beginning after

December

15,

2016,

including interim periods within those years. The Company has adopted this guidance for the year ending

November

30,

2017

, including interim periods within that reporting period. The Company chose early adoption for this guidance, as its impact was expected not to be material, and it will allow us to focus more of our efforts on preparing The Company chose early adoption for this guidance, as its impact was expected not to be material, and it will allow us to focus more of our efforts on preparing for the adoption of more complex guidance. for the adoption of more complex guidance. Its adoption has not had a material impact on the Company’s consolidated financial statements.

Income Taxes

November

2015,

the FASB issued ASU

2015

17,

“Income Taxes (Topic

740)”,

to simplify the presentation of deferred income taxes. Under the new standard, both deferred tax liabilities and assets are required to be classified as noncurrent in a classified balance sheet. ASU No.

2015

is effective for fiscal years beginning after

December

15,

2017

and interim periods within annual periods beginning after

December

15,

2018.

During the

first

quarter of fiscal

2017,

the Company elected to prospectively adopt ASU

2015

17,

thus reclassifying current deferred tax assets to noncurrent on the accompanying consolidated balance sheet. The prior reporting period was not retrospectively adjusted. The Company chose early adoption for this guidance, as its impact was expected not to be material, and it will allow us to focus more of our efforts on preparing for the adoption of more complex guidance.

The adoption of this guidance had no impact on the Company’s consolidated statements of operations and comprehensive income.

Accounting Pronouncements Not Yet Adopted

Revenue from Contracts with Customers

May

2014,

the FASB issued ASU No.

2014

09,

“Revenue from Contracts with Customers” which supersedes the guidance in “Revenue Recognition (Topic

605)”

and requires entities to recognize revenue in a way that depicts the transfer of promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled to in exchange for those goods or services. ASU

2014

is effective for annual reporting periods beginning after

December

15,

2017,

including interim periods within that reporting period

, and is to be applied retrospectively, with early application not permitted. The Company is evaluating the new standard, and at this time believes that its Scientific segment will be impacted most significantly by this standard. The Company continues to research and assess the implications of the adoption of this standard on our consolidated financial statements.

Leases

February

2016,

the FASB issued ASU

2016

02,

“Leases (topic

842)”,

which requires a lessee to recognize a right-of-use asset and a lease liability on its balance sheet for all leases with terms of

twelve

months or greater. This guidance is effective for fiscal years beginning after

December

15,

2018,

including interim periods within those years. The Company will adopt this guidance for the year ending

November

30,

2020

including interim periods within that reporting period. The Company is currently evaluating the impact of this guidance on its consolidated financial statements.