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Recently Issued Accounting Standards
6 Months Ended
Jun. 30, 2020
New Accounting Pronouncements And Changes In Accounting Principles [Abstract]  
New Accounting Pronouncements And Changes In Accounting Principles [Text Block]
Note 3 – Recently Issued Accounting Standards
Recently Issued Accounting Standards
 
Adopted
The Financial Accounting Standards Board (“FASB”)
 
issued Account Standards Update (“ASU”)
 
2020-04,
Reference Rate
Reform (Topic
 
848): Facilitation of the Effects of Reference
 
Rate Reform on Financial Reporting
 
in March 2020.
 
The amendments
provide temporary optional expedients and exceptions for
 
applying GAAP to contract modifications, hedging relationships
 
and other
transactions to ease the potential accounting and financial
 
reporting burden associated with transitioning away from
 
reference rates
that are expected to be discontinued, including the London
 
Interbank Offered Rate (“LIBOR”).
 
ASU 2020-04 is effective for the
Company as of March 12, 2020 and generally can be
 
applied through December 31, 2022.
 
As of June 30, 2020, the expedients
provided in ASU 2020-04 do not impact the Company;
 
however, the Company will continue to
 
monitor for potential impacts on its
consolidated financial statements.
The FASB issued
 
ASU 2018-15
, Customer’s
 
Accounting for Implementation Costs Incurred
 
in a Cloud Computing Arrangement
That
 
Is a Service Contract
 
in August 2018 that clarifies the accounting for implementation
 
costs incurred in a cloud computing
arrangement under a service contract.
 
This guidance generally aligns the requirements for capitalizing
 
implementation costs incurred
in a hosting arrangement under a service contract with the
 
requirements for capitalizing implementation costs related
 
to internal-use
software.
 
The guidance within this accounting standard update is effective
 
for annual periods beginning after December 15, 2019 and
should be applied either retrospectively or prospectively
 
to all implementation costs incurred after the date of
 
adoption.
 
Early
adoption was permitted.
 
The Company adopted this standard on a prospective basis, effective
 
January 1, 2020.
 
There was no
cumulative effect of adoption recorded within
 
retained earnings on January 1, 2020.
 
The FASB issued
 
ASU 2018-14,
Disclosure Framework — Changes to
 
the Disclosure Requirements
 
for Defined Benefit Plans
 
in
August 2018 that modifies certain disclosure requirements
 
for fair value measurements.
 
The guidance removes certain disclosure
requirements regarding transfers between levels of
 
the fair value hierarchy as well as certain disclosures related
 
to the valuation
processes for certain fair value measurements.
 
Further, the guidance added certain disclosure
 
requirements including unrealized gains
and losses and significant unobservable inputs used to
 
develop certain fair value measurements.
 
The guidance within this accounting
standard update is effective for annual and
 
interim periods beginning after December 15, 2019, and should
 
be applied prospectively in
the initial year of adoption or prospectively to all periods
 
presented, depending on the amended disclosure requirement.
 
Early
adoption was permitted.
 
The Company adopted this standard on a prospective basis, effective
 
January 1, 2020.
 
ASU 2018-14
addresses disclosures only and will not have an impact
 
on the Company’s consolidated
 
financial statements.
The FASB issued
 
ASU 2016-13,
Financial Instruments - Credit Losses (Topic
 
326): Measurement of Credit
 
Losses on Financial
Instruments
in June 2016 related to the accounting for and disclosure of
 
credit losses.
 
The FASB subsequently
 
issued several
additional accounting standard updates which amended
 
and clarified the guidance, but did not materially change
 
the guidance or its
applicability to the Company.
 
This accounting guidance introduces a new model for
 
recognizing credit losses on financial
instruments, including customer accounts receivable,
 
based on an estimate of current expected credit losses.
 
The guidance within this
accounting standard update is effective for annual
 
and interim periods beginning after December 15, 2019.
 
Early adoption was
permitted.
 
The Company did not early adopt, but did adopt the guidance in
 
this accounting standard update, including all applicable
subsequent updates to this accounting guidance, as required
 
,
 
on a modified retrospective basis, effective January
 
1, 2020.
 
Adoption
did not have a material impact to the Company’s
 
financial statements as expected.
 
However, as a result of this adoption, the Company
recorded a cumulative effect of accounting change
 
that resulted in an increase to its allowance for doubtful accounts
 
of approximately
$
1.1
 
million, a decrease to deferred tax liabilities of $
0.2
 
million and a decrease to retained earnings of $
0.9
 
million.
 
In accordance with this guidance, the Company recognizes
 
an allowance for credit losses reflecting the net amount expected to
 
be
collected from its financial assets, primarily trade accounts
 
receivable.
 
This allowance represents the portion of the receivable that the
Company does not expect to collect over its contractual
 
life, considering past events and reasonable and supportable forecasts of
 
future
economic conditions.
 
The Company’s allowance for
 
credit losses on its trade accounts receivable is based on
 
specific collectability
facts and circumstances for each outstanding receivable and
 
customer, the aging of outstanding
 
receivables and the associated
collection risk the Company estimates for certain past due
 
aging categories, and also, the general risk to all outstanding accounts
receivable based on historical amounts determined to
 
be uncollectible.
Recently Issued Accounting Standards
 
Not Yet Adopted
The FASB
 
issued ASU 2020-01,
 
Investments – Equity Securities (Topic
 
321), Investments – Equity Method and Joint Ventures
(Topic
 
323), and Derivatives and Hedging (Topic
 
815) –Clarifying the Interactions between Topic
 
321, Topic
 
323, and Topic
 
815
 
in
January 2020 clarifying the interaction among the
 
accounting standards related to equity securities, equity method investments,
 
and
certain derivatives.
 
The new guidance, among other things, states that a company
 
should consider observable transactions that require
a company to either apply or discontinue the equity method
 
of accounting, for the purposes of applying the fair value
 
measurement
alternative immediately before applying or upon discontinuing
 
the equity method.
 
The new guidance also addresses the measurement
of certain purchased options and forward contracts used
 
to acquire investments.
 
The guidance within this accounting standard update
is effective for annual and interim periods beginning
 
after December 15, 2020 and is to be applied prospectively.
 
Early adoption is
permitted.
 
The Company has not early adopted the guidance and is currently
 
evaluating its implementation.
The FASB issued
 
ASU 2019-12
, Income Taxes
 
(Topic
 
740): Simplifying the Accounting for Income Taxes
 
in December 2019 to
simplify the accounting for income taxes.
 
The guidance within this accounting standard update removes
 
certain exceptions, including
the exception to the incremental approach for certain
 
intra-period tax allocations, to the requirement to recognize or not
 
recognize
certain deferred tax liabilities for equity method investments
 
and foreign subsidiaries, and to the general methodology
 
for calculating
income taxes in an interim period when a year-to-date
 
loss exceeds the anticipated loss for the year.
 
Further, the guidance simplifies
the accounting related to franchise taxes, the step up in
 
tax basis for goodwill, current and deferred tax expense, and codification
improvements for income taxes related to employee
 
stock ownership plans.
 
The guidance is effective for annual and interim periods
beginning after December 15, 2020.
 
Early adoption is permitted.
 
The Company has not early adopted the guidance and
 
is currently
evaluating its implementation.
The FASB issued
 
ASU 2018-13
, Fair Value
 
Measurement (Topic
 
820):
 
Disclosure Framework – Changes to the
 
Disclosure
Requirements for Fair Value
 
Measurement
 
in August 2018 that modifies certain disclosure requirement
 
s
 
for employers that sponsor
defined benefit pension or other postretirement plans.
 
The amendments in this accounting standard update remove
 
disclosures that are
no longer considered cost beneficial, clarify the specific
 
requirements of certain disclosures, and add new disclosure requirements
 
as
relevant.
 
The guidance within this accounting standard update is effective
 
for annual periods beginning after December 15, 2020, and
should be applied retrospectively to all periods presented.
 
Early adoption is permitted.
 
The Company has not early adopted the
guidance and is currently evaluating its implementation.