Note 3 - New Accounting Guidance

12 Months Ended

Sep. 30, 2020

Notes to Financial Statements

Accounting Standards Update and Change in Accounting Principle [Text Block]

NOTE

3.

NEW ACCOUNTING GUIDANCE

In

February 2016,

the FASB issued ASU

2016

-

02,

Leases (Topic

842

), which supersedes the existing guidance for lease accounting, Leases (Topic

840

). ASU

2016

-

02

requires the lessee to recognize the right to use lease assets and lease liabilities that arise from operating leases, and present them in its statement of financial condition. The recognition of these lease assets and lease liabilities represents a change from previous US GAAP requirements, which did

not

require lease assets and lease liabilities to be recognized for operating leases. The recognition, measurement, and presentation of expenses and cash flows arising from a lease by a lessee, have

not

significantly changed from previous US GAAP requirements. The Company adopted the provisions of Topic

842

on

October 1, 2019,

using the modified retrospective approach and the option presented under ASU

2018

-

11

to transition only active leases as of

October 1, 2019.

All comparative periods prior to

October 1, 2019

are

not

adjusted and continue to be reported in accordance with Topic

840.

The Company elected to utilize the package of practical expedients permitted within the new standard, which among other things, allowed the Company to carryforward the historical lease classification. The Company made an accounting policy election to keep leases with an initial term of

12

months or less off the Company's consolidated statements of financial condition which resulted in recognizing those lease payments in the consolidated statements of operations on a straight-line basis over the lease term.

Adoption of the new standard resulted in the recording of right-of-use assets and corresponding lease liabilities of

$14,720,000

and

$16,309,000,

respectively, as of

October 1, 2019.

The difference between the right-of-use assets and the lease liabilities was recorded to eliminate existing deferred rent balances and remaining balances of lease incentives recorded under Topic

840.

The adoption of the new standard did

not

materially impact the Company's consolidated statements of operations and had

no

impact on the Company's consolidated statements of cash flows. The Company's current lease arrangements expire through

2032.

See Note

21

for further information.

In

August 2018,

the FASB issued ASU

2018

-

13,

"Fair Value Measurement - Disclosure Framework - Changes to the Disclosure Requirements for the Fair Value Measurement," which removes or modifies certain current disclosures, and adds additional disclosures. The changes are meant to provide more relevant information regarding valuation techniques and inputs used to arrive at measures of fair value, uncertainty in the fair value measurements, and how changes in fair value measurements impact an entity's performance and cash flows. Certain disclosures in ASU

2018

-

13

will need to be applied on a retrospective basis and others on a prospective basis. The standard is effective for the Company beginning

October 1, 2020

for both interim and annual periods. Early adoption is permitted. The Company is currently assessing the impact that the adoption of ASU

2018

-

13

will have on its financial statements.

In

December 2019,

the FASB issued ASU

2019

-

12,

 "Simplifying the Accounting for Income Taxes". The amendments in ASU

2019

-

12

simplify the accounting for income taxes by removing certain exceptions to the general principles in ASC Topic

740,

 Income Taxes. The amendments also improve consistent application of and simplify US GAAP for other areas of Topic

740

by clarifying and amending existing guidance. ASU

2019

-

12

will be effective for the Company's fiscal year beginning

October 1, 2021,

with early adoption permitted. The transition requirements are dependent upon each amendment within this update and will be applied either prospectively or retrospectively. The Company is currently assessing the impact that the adoption of ASU

2019

-

12

will have on its financial statements.