Recent Accounting Pronouncements

6 Months Ended

Jun. 30, 2014

New Accounting Pronouncements and Changes in Accounting Principles [Abstract]

Recent Accounting Pronouncements

Accounting Standards Codification 606 “Revenue from Contracts with Customers.”  In May 2014, Accounting Standards Update (“ASU”) No. 2014-09, “Revenue from Contracts with Customers (Topic 606)” was issued.  The Financial Accounting Standards Board and the International Accounting Standards Board initiated a joint project to clarify the principles for recognizing revenue and to develop a common revenue standard for U.S. GAAP and IFRS that would 1) remove inconsistencies and weaknesses in revenue requirements, 2) provide a more robust framework for addressing revenue issues, 3) improve comparability of revenue recognition practices across entities, industries, jurisdictions and capital markets, 4) provide more useful information to users of financial statements through improved disclosure requirements and 5) simplify the preparation of financial statements by reducing the number of requirements to which an entity must refer.  This ASU is effective for annual reporting periods after December 15, 2016, including interim periods within that reporting period.  Early application is not permitted.  The Company does not expect this ASU to have a material impact on the Company’s consolidated financial results.

Accounting Standards Codification 718 “Compensation – Stock Compensation.”  In June 2014, ASU No. 2014-12, “Accounting for Share-Based Payments When the Terms of an Award Provide That a Performance Target Could Be Achieved after the Requisite Service Period” was issued.  This ASU requires that a performance target that affects vesting and could be achieved after the requisite service period be treated as a performance condition.  A reporting entity should apply existing guidance in Topic 718 as it relates to awards with performance conditions that affect vesting to account for such awards.  The performance target should not be reflected in estimating the grant-date fair value of the award.  Compensation cost should be recognized in the period in which it becomes probable that the performance target will be achieved and should represent the compensation cost attributable to the period(s) for which the requisite service has already been rendered.  This ASU is effective for annual periods beginning after December 15, 2015.  The Company does not expect this ASU to have a material impact on the Company’s consolidated financial results.