Note 3 - Accounting Standards Adopted in Fiscal 2019 and Recent Accounting Pronouncements

3 Months Ended

Dec. 31, 2018

Notes to Financial Statements

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

Note

3

- Accounting Standards Adopted in Fiscal

2019

and Recent Accounting Pronouncements

Accounting Standards Adopted in Fiscal

201

9

On

October 1, 2018,

the Company adopted Accounting Standards Update (“ASU”)

No.

2016

-

01,

Financial Instruments – Overall (Subtopic

825

-

10

): Recognition and Measurement of Financial Assets and Financial Liabilities

. This ASU requires an entity that holds financial assets or owes financial liabilities to, among other things, measure equity investments at fair value and recognize unrealized gains (losses) through net income (loss). Accordingly, the Company’s net loss of

$21,533,000

for the

three

month ended

December 31, 2018,

included net unrealized losses on investments of

$28,640,000.

For the prior year’s period, the Company recorded net unrealized gains for its available-for-sale marketable securities in other comprehensive income. In addition, ASU

2016

-

01

prohibits the restatement of prior year financial statements but requires that the Company reclassify net after-tax unrealized gains on investments of

$115,786,000

on adoption day from “accumulated other comprehensive income” to “retained earnings”, both of which are listed under the “Shareholders’ equity” section of the Company’s Consolidated Balance Sheets. This represented an increase to retained earnings and a decrease to accumulated other comprehensive income.

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, 2018.