Recently Issued Accounting Pronouncements

12 Months Ended

Jan. 01, 2022

Accounting Changes And Error Corrections [Abstract]

Accounting Standards Adopted in Current Year and Recently Issued Accounting Pronouncements

3. Accounting Standards Adopted in Current Year

In December 2019, the Financial Accounting Standards Board (the “FASB”) issued updated guidance simplifying the accounting for income taxes by removing certain exceptions to the general principles in Topic 740 as well as by improving consistent application of GAAP by clarifying and amending existing guidance. The effective date of the new guidance for public companies is for fiscal years beginning after December 15, 2020 and interim periods within those fiscal years. Early adoption is permitted. On January 3, 2021, the Company adopted the updated guidance simplifying the accounting for income taxes on a prospective basis, which did not have a material impact on its consolidated financial statements.

21. Recently Issued Accounting Pronouncements

In October 2021, the FASB issued updated guidance that requires an acquiring entity to apply Topic 606 to recognize and measure contract assets and contract liabilities acquired in a business combination. The effective date of the new guidance for public companies is for fiscal years beginning after December 15, 2022 and interim periods within those fiscal years. Early adoption is permitted. The new guidance should be applied prospectively to business combinations occurring on or after its effective date. Although the Company is currently evaluating the timing of adoption for this guidance, it does not expect the adoption to have a material impact on its consolidated financial statements.