Immaterial Correction of an Error in Prior Periods

12 Months Ended

Dec. 31, 2020

Immaterial Correction of an Error in Prior Periods

Immaterial Correction of an Error in Prior Periods

2.    Immaterial Correction of an Error in Prior Periods

Under ASC 715-60 Defined Benefit Plans-Other Postretirement the Company’s policy was to record actuarial gains and losses as a component of comprehensive income as they arise and to record the minimum amortization of net actuarial gain or loss as a component of net periodic benefit cost.  Beginning in 2014, without making an accounting policy election, the Company incorrectly expensed substantially all of the actuarial loss related to its postretirement health and life insurance benefit plan as opposed to following its prior established policy.  In accordance with Financial Accounting Standards Board Accounting Standards Codification 250, Accounting Changes and Error Corrections, we evaluated the materiality of the errors from quantitative and qualitative perspectives, and concluded that the errors were immaterial to the Company's prior period interim and annual consolidated financial statements. Since these revisions were not material to any prior period interim or annual financial statements, no amendments to previously filed interim or annual periodic reports are required. Consequently, the Company has adjusted for these errors by revising its historical financial statements presented herein.   The Company has recorded a cumulative effect of the error to the opening equity as of December 31, 2018 to increase retained earnings and accumulated other comprehensive loss by $881,000.

The following table presents the effects of the error correction for the year ended December 31, 2019:

	Year Ended December 31, 2019
				($000's omitted)
	As Reported		Restatement		As Adjusted
Retained earnings	$	20,484	$	1,219	$	21,703
Accumulated other comprehensive gain (loss)		98		(1,219)		(1,121)
Selling, general and administrative		9,313		(430)		8,883
Income tax provision		579		92		671
Other comprehensive income:
Retirement benefits adjustment, net of income taxes		63		(338)		(275)
Basic net income per share	$	0.91	$	0.14	$	1.05
Diluted net income per share	$	0.88	$	0.15	$	1.03

Net cash provided by operating activities, comprehensive income, or total equity were not affected by this correction.