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Note 3 - Accounting Standards Adopted in Fiscal 2020
6 Months Ended
Mar. 31, 2020
Notes to Financial Statements  
Accounting Standards Update and Change in Accounting Principle [Text Block]
Note
3
- Accounting Standards Adopted in Fiscal
2020
 
In
February 2016,
the Financial Accounting Standard Board issued Accounting Standards Update (“ASU”)
2016
-
02,
Leases (Topic
842
)
which requires that all leases be recognized by lessees on the balance sheet through a right-of-use (ROU) asset and corresponding lease liability, including today’s operating leases. During the
first
quarter of fiscal
2020,
the Company adopted this standard using the modified retrospective method, which does
not
require an adjustment to comparative period financial statements. At
March 31, 2020,
the Company recorded a right-of-use (ROU) asset and lease liability of approximately
$382,000
for its operating office leases. As allowed by the guidance, the Company has elected
not
to recognize ROU assets and lease liabilities for short-term (less than
one
year) leases of any class of underlying asset. ROU assets represent the Company’s right to use an underlying asset for the lease term, and lease liabilities represent its obligation to make rental payments from the leases. ROU assets and liabilities are required to be recognized based on the present value of lease payments over the lease term. At
March 31, 2020,
the Company had office lease obligations of approximately
$43,000
beyond
one
year; it is deemed immaterial for the present value difference. Operating office leases are included in operating lease ROU assets, current accrued liabilities and long-term accrued liabilities in the Company’s accompanying Consolidated Balance Sheets. The Company’s adoption of this new standard had
no
significant impact on the Company’s financial condition, results of operations or disclosures.