Note 2 - Recent Accounting Pronouncements

6 Months Ended

Dec. 31, 2016

Notes to Financial Statements

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

Note

2:

Recent A

ccounting Pronouncements

In

May

2014,

the FASB issued a new standard related to the “Revenue from Contracts with Customers” which amends the existing accounting standards for revenue recognition. The standard requires entities to recognize revenue when it transfers promised goods or services to customers in an amount that reflects the consideration the entity expects to be entitled to in exchange for those goods or services. This standard is applicable for fiscal years beginning after

December

 

15,

2017

and for interim periods within those years. Earlier application will be permitted only as of annual reporting periods beginning after

December

15,

2016,

including interim reporting periods within that reporting period. The Company expects to adopt this standard for its fiscal year beginning

July

 

1,

2018.

The Company is currently evaluating the impact of the adoption of this standard on its consolidated financial statements. 

In

July

2015,

the FASB issued ASU No.

2015

-

11,

"Inventory (Topic

330):

Simplifying the Measurement of Inventory." Previous to the issuance of this ASU, ASC

330

required that an entity measure inventory at the lower of cost or market. ASU

2015

-

11

specifies that “market” is defined as “net realizable value,” or the estimated selling price in the ordinary course of business, less reasonably predictable costs of completion, disposal, and transportation. This ASU is effective for fiscal years, and for interim periods within those fiscal years, beginning after

December

15,

2016.

Application is to be applied prospectively with earlier application permitted as of the beginning of an interim or annual reporting period. The adoption of ASU No.

2015

-

11

will not have a material impact on our consolidated financial statements.

In

February

2016,

the FASB issued ASU No.

2016

-

02,

“Leases (Topic

842)”.

  The ASU requires that organizations that lease assets recognize assets and liabilities on the balance sheet for the rights and obligations created by those leases.  The ASU will affect the presentation of lease related expenses on the income statement and statement of cash flows and will increase the required disclosures related to leases.  This ASU is effective for annual periods beginning after

December

15,

2018,

and interim periods thereafter, with early adoption permitted.  The Company is currently evaluating the impact of ASU No.

2016

-

02

on its consolidated financial statements.  It is expected that a key change upon adoption will be the balance sheet recognition of leased assets and liabilities and that any changes in income statement recognition will not be material.