Note 13 - Accounting Pronouncements

3 Months Ended

May 31, 2020

Notes to Financial Statements

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

1

3

.

A

CCOUNT

I

NG

P

RONOUNCEMENTS

Recently

Adopted

In

August 2018,

the FASB issued ASU

No.

2018

-

13,

Fair Value Measurement (Topic

820

):

Disclosure

Framework—Changes to the Disclosure Requirements for Fair Value Measurement

. This ASU modifies the disclosure requirements for fair value measurements by removing the requirement to disclose the amount and reasons for transfers between Level

1

and Level

2

of the fair value hierarchy and the policy for timing of such transfers. This ASU expands the disclosure requirements for Level

3

fair value measurements, primarily focused on changes in unrealized gains and losses included in other comprehensive income (loss). This ASU is effective for the Company’s fiscal year ending

February 28, 2021

and for the interim periods within that year. The Company adopted this ASU in the

first

quarter of its

2021

fiscal year. The adoption of ASU

2018

-

13

did

not

have an impact on the Company’s consolidated financial statements and disclosures.

Recently Issued

In

June 2018,

the FASB issued ASU

No.

2016

-

13,

Financial Instruments – Credit Losses (Topic

326

): Measurement of Credit Losses on Financial Instruments.

This ASU improves financial reporting by requiring timelier recording of credit losses on loans and other financial instruments held by financial institutions and other organizations. The ASU requires the measurement of all expected credit losses for financial assets held at the reporting date based on historical experience, current conditions, and reasonable and supportable forecasts. Financial institutions and other organizations will now use forward-looking information to better inform their credit loss estimates. This ASU is effective for SEC filers for fiscal years, and interim periods within those fiscal years, beginning after

December 15, 2019 (

i.e.,

January 1, 2020,

for calendar year entities). For public companies that are

not

SEC filers, the ASU is effective for fiscal years beginning after

December 15, 2020,

and interim periods within those fiscal years. For all other organizations, the ASU on credit losses will take effect for fiscal years beginning after

December 15, 2020,

and for interim periods within fiscal years beginning after

December 15, 2021.

The adoption of ASU

2016

-

13

will

not

have an impact on the Company’s consolidated financial statements and disclosures.

In

December 2019,

the FASB issued ASU

No.

2019

-

12,

Income Taxes (Topic

740

): Simplifying the Accounting for Income Taxes.

The changes simplify the accounting for a number of topics, some of which are narrow. Some of the proposed amendments eliminate specific exceptions to the general principles of income tax accounting while other changes clarify a handful of narrow issues within the broad topic of income tax accounting. The amendments in ASU

2019

-

12

are effective for public business entities for fiscal years beginning after

December 15, 2020,

and interim periods within those fiscal years. For all other entities, the requirements are effective for fiscal years beginning after

December 15, 2021

and interim periods within fiscal years beginning after

December 15, 2022.

Early adoption is permitted for: (

1

) public business entities for periods for which financial statements have

not

yet been issued, and (

2

) all other entities for periods for which financial statements have

not

yet been made available for issuance. The Company is currently evaluating the potential impact of adopting this guidance on its consolidated financial statements and disclosures.