Recently Issued Accounting Pronouncements

6 Months Ended

Jun. 30, 2015

New Accounting Pronouncements and Changes in Accounting Principles [Abstract]

Recently Issued Accounting Pronouncements

Recently Issued Accounting Pronouncements

In May 2014, the Financial Accounting Standards Board (FASB), issued Accounting Standards Update (ASU) No. 2014-09, Revenue from Contracts with Customers. The core principle of the guidance is that an entity should recognize revenue to depict the transfer of promised goods or services to customers in an amount that reflects the consideration to which an entity expects to be entitled for the exchange for those goods and services. For public entities, this ASU is effective for annual reporting periods beginning after December 31, 2017. The ASU allows for a choice of two methods for adoption: full retrospective with practical expedients or modified retrospective. We continue to assess the impact the adoption of this guidance and the selection of the method of our retrospective adoption will have on our financial statements.

In April 2015, the FASB issued ASU No. 2015-03, Interest - Imputation of Interest. The purpose of the guidance is to simplify the presentation of debt issuance costs related to recognized debt liability. The guidance will require that all debt issuance costs related to a recognized debt liability be presented on the balance sheet as a reduction from the carrying amount of the debt liability, consistent with debt discounts. For public entities, this ASU is effective for annual reporting periods beginning after December 31, 2015. The new guidance will be applied retrospectively, each balance sheet presented will be adjusted to reflect the new guidance.

In July 2015, the FASB issued ASU No. 2015-11, Inventory. The guidance will require entities to measure inventory at the lower of cost or net realizable value. For public entities that measure inventory using the first-in, first-out or average cost method, this ASU is effective for annual reporting periods beginning after December 31, 2016, including interim periods. We do not anticipate that this standard will have a significant impact on our financial statements.

We do not believe that any other recently issued, but not yet effective accounting pronouncements, if adopted, would have a material effect on the accompanying financial statements.