Note 3 - Accounting Standards Adopted in Fiscal 2018 and Recent Accounting Pronouncements	9 Months Ended
Jun. 30, 2018
Notes to Financial Statements
New Accounting Pronouncements and Changes in Accounting Principles [Text Block]	Note 3 - Accounting Standards Adopted in Fiscal 2018 and Recent Accounting Pronouncements Accounting Standards Adopted in Fiscal 201 8 In November 2015, the Financial Accounting Standards Board (FASB) issued Accounting Standards Update (ASU) No. 2015 - 17, Income Taxes (Topic 740 ): Balance Sheet Classification of Deferred Taxes . This update requires deferred tax liabilities and assets to be classified as noncurrent in the consolidated balance sheet. The Company has adopted this guidance effective October 1, 2017 and concluded that it has no significant impact on the Company’s financial condition, results of operations or disclosures because it is simply a reclassification of current deferred taxes to non-current deferred taxes with an itemization of federal and state deferred taxes. In February 2018, the FASB issued an amendment to ASC Subtopic 220 - 10, Reclassification of Certain Tax Effects from Accumulated Other Comprehensive Income (“AOCI”) . This amendment permits entities to reclassify stranded tax effects resulting from tax rate changes related to the Tax Cuts and Jobs Act (the “Tax Act”), from AOCI to retained earnings. The guidance is effective for fiscal years beginning after December 15, 2018, and interim periods within those fiscal years. Early adoption is permitted. The election can be applied as of the first day of the interim period in which it is adopted or retroactively to the first interim period in which the tax effects of the Tax Act were recognized. The Company elected to adopt this amendment as of January 1, 2018. Pursuant to this amendment, the Company can only reclassify the stranded tax effects resulting from the Tax Act and not those relative to the previous California/State apportionment. As such, the Company recorded a reclassification of stranded tax effects of $19,960,000 between AOCI and retained earnings. This represented a decrease to retained earnings and an increase to AOCI, both of which are listed under the “Shareholders’ equity” section of the Company’s Consolidated Balance Sheets. In May 2014, the FASB issued ASU No. 2014 - 09, Revenue from Contracts with Customers (ASC Topic 606 ) which requires that revenues be recognized in an amount reflecting the consideration an entity expects to receive in exchange for those goods or services when a customer obtains control of promised goods or services. The Company elected to adopt ASC Topic 606 early effective October 1, 2017 using the modified retrospective method. The Company has concluded that the adoption of the ASC Topic 606 in fiscal 2018 has no significant impact on the Company’s financial condition or results of operations. For the Company’s traditional publishing business (the “Traditional Business”), revenue recognition related to advertising, circulation, and advertising service fees remains unchanged. For the Journal Technologies’ software business, the Company previously utilized the completed performance method of accounting, pursuant to which the Company did not recognize revenues for implementation services or licenses, maintenance, support and hosting services until after the services were performed and accepted by the customer (go-live), due to the fact that the customer’s acceptance was typically unpredictable and reliable estimates of the progress towards completion could not be made. In addition, maintenance services were recognized over the term of the maintenance period. Thus, the Company’s past revenue recognition policy was already in conformity with ASU Topic 606, which calls for revenue recognition at the point of delivery when a performance obligation is fulfilled. Consequently, the Company believes there are no required material retrospective or accumulated catch-up adjustments with respect to prior years’ financial figures, as revenues have been recognized consistently in the same manner throughout the comparative reporting periods. The adoption of ASC 606 also requires the capitalization of certain costs of obtaining contracts, specifically sales commissions which are to be amortized over the expected term of the contracts. For its software contracts, the Company incurs an immaterial amount of sales commission costs which have no significant impact on the Company’s financial condition and results of operations. In addition, the Company’s implementation and fulfillment costs do not meet all criteria required for capitalization. Other Recent Accounting Pronouncements The Company will continue to evaluate the other new accounting pronouncements as detailed in its Annual Report on Form 10 -K for the year ended September 30, 2017.

Note

- Accounting Standards Adopted in Fiscal

2018

and Recent Accounting Pronouncements

Accounting Standards Adopted in Fiscal

201

November 2015,

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

No.

2015

17,

Income Taxes (Topic

740

): Balance Sheet Classification of Deferred Taxes

. This update requires deferred tax liabilities and assets to be classified as noncurrent in the consolidated balance sheet. The Company has adopted this guidance effective

October 1, 2017

and concluded that it has

significant impact on the Company’s financial condition, results of operations or disclosures because it is simply a reclassification of current deferred taxes to non-current deferred taxes with an itemization of federal and state deferred taxes.

February 2018,

the FASB issued an amendment to ASC Subtopic

220

10,

Reclassification of Certain Tax Effects from Accumulated Other Comprehensive Income (“AOCI”)

. This amendment permits entities to reclassify stranded tax effects resulting from tax rate changes related to the Tax Cuts and Jobs Act (the “Tax Act”), from AOCI to retained earnings. The guidance is effective for fiscal years beginning after

December 15, 2018,

and interim periods within those fiscal years. Early adoption is permitted. The election can be applied as of the

first

day of the interim period in which it is adopted or retroactively to the

first

interim period in which the tax effects of the Tax Act were recognized. The Company elected to adopt this amendment as of

January 1, 2018.

Pursuant to this amendment, the Company can only reclassify the stranded tax effects resulting from the Tax Act and

not

those relative to the previous California/State apportionment. As such, the Company recorded a reclassification of stranded tax effects of

$19,960,000

between AOCI and retained earnings. This represented a decrease to retained earnings and an increase to AOCI, both of which are listed under the “Shareholders’ equity” section of the Company’s Consolidated Balance Sheets.

May 2014,

the FASB issued ASU

No.

2014

09,

Revenue from Contracts with Customers (ASC Topic

606

)

which requires that revenues be recognized in an amount reflecting the consideration an entity expects to receive in exchange for those goods or services when a customer obtains control of promised goods or services. The Company elected to adopt ASC Topic

606

early effective

October 1, 2017

using the modified retrospective method.

The Company has concluded that the adoption of the ASC Topic

606

in fiscal

2018

has

significant impact on the Company’s financial condition or results of operations. For the Company’s traditional publishing business (the “Traditional Business”), revenue recognition related to advertising, circulation, and advertising service fees remains unchanged. For the Journal Technologies’ software business, the Company previously utilized the completed performance method of accounting, pursuant to which the Company did

not

recognize revenues for implementation services or licenses, maintenance, support and hosting services until after the services were performed and accepted by the customer (go-live), due to the fact that the customer’s acceptance was typically unpredictable and reliable estimates of the progress towards completion could

not

be made. In addition, maintenance services were recognized over the term of the maintenance period. Thus, the Company’s past revenue recognition policy was already in conformity with ASU Topic

606,

which calls for revenue recognition at the point of delivery when a performance obligation is fulfilled. Consequently, the Company believes there are

required material retrospective or accumulated catch-up adjustments with respect to prior years’ financial figures, as revenues have been recognized consistently in the same manner throughout the comparative reporting periods.

The adoption of ASC

606

also requires the capitalization of certain costs of obtaining contracts, specifically sales commissions which are to be amortized over the expected term of the contracts. For its software contracts, the Company incurs an immaterial amount of sales commission costs which have

significant impact on the Company’s financial condition and results of operations. In addition, the Company’s implementation and fulfillment costs do

not

meet all criteria required for capitalization.

Other Recent Accounting Pronouncements

The Company will continue to evaluate the other new accounting pronouncements as detailed in its Annual Report on Form

-K for the year ended

September 30, 2017.