Summary of Significant Accounting Policies

6 Months Ended

Jul. 31, 2012

Accounting Policies [Abstract]

Summary of Significant Accounting Policies

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

There have been no material changes to the Company's significant accounting policies as described in the Company's Annual Report on Form 10-K for the fiscal year ended January 31, 2012.

The Company did, however, evaluate and update its revenue recognition policy to reflect characteristics of contracts entered into by its subsidiary, Vista Research, Inc. (Vista) acquired in January 2012. Raven recognizes revenue when it is realized or realizable and has been earned.  Revenue is recognized when there is persuasive evidence of an arrangement, the sales price is determinable, collectability is reasonably assured and shipment or delivery has occurred (depending on the terms of the sale).   The Company sells directly to customers or distributors who incur the expense and commitment for any post-sale obligations beyond stated warranty terms.  Estimated returns, sales allowances or warranty charges are recognized upon shipment of a product.  The Company has updated its policy to recognize revenue on certain long-term, service-related contracts under the percentage-of-completion method of accounting, whereby contract revenues are recognized on a pro-rata basis based upon the ratio of costs incurred compared to total estimated contract costs.  Losses estimated to be incurred upon completion of contracts are charged to operations when they become known.   This addition to our policy will better match revenues with the expenses on these contracts.