Note 3 - Recent Accounting Pronouncements	9 Months Ended
Sep. 30, 2017
Notes to Financial Statements
New Accounting Pronouncements and Changes in Accounting Principles [Text Block]	Note 3. Recent Accounting Pronouncements In May 2014, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) 2014 - 09, Revenue from Contracts with Customers (“ASU 2014 - 09” ). ASU 2014 - 09 clarifies the principles used to recognize revenue for all entities. ASU 2014 - 09 provides a unified five -step model to determine when and how revenue is recognized. The core principle is that a company should recognize revenue to depict the transfer of promised goods or services to customers in an amount that reflects the consideration for which the entity expects to be entitled in exchange for those goods or services. The new standard replaces most of the existing revenue recognition standards in U.S. GAAP. In addition, in March 2016, the FASB issued ASU 2016 - 08, Revenue from Contracts with Customers (Topic 606 ): Principal versus Agent Considerations (Reporting Revenue Gross versus Net) , which clarifies how to apply revenue recognition guidance related to whether an entity is a principal or an agent. The Company has reviewed the terms and conditions contained its contracts with customers relating to our brokerage and management services and captive landfill management activities for our waste management services segment. The Company is considering the terms and conditions of the contracts and the all-inclusive pricing for the service contained in those contracts in order to determine whether the waste management services provided to the customer meets the criteria to be accounted for under the series guidance. The Company also assessed whether the principal versus agent consideration would change how the Company presents revenue for these contracts. Under the contracts, the Company is primarily responsible for fulfilling the service and controls the service prior to transferring it to the customer. Based on our assessment, the Company is acting as the principal and primary obligor under the contracts, and should recognize revenue in the gross amount of consideration which it expects to be entitled in exchange for the service provided. The Company also reviewed ASU 2014 - 09 for our golf and related operations segment relating to our annual membership contracts. Based on review of the contract s, we expect to recognize membership dues over the membership term. As a practical expedient, the Company applied this guidance to the whole portfolio of annual membership contracts as all contracts have similar characteristics. The Company reasonably expects that the effect on the financial statements of applying this guidance to the portfolio of all membership contracts does not differ from applying this guidance to each individual contract. The Company will adopt the new revenue standard in its first quarter of 2018. The Company expects to finalize our analysis in the fourth quarter. The Company plans to use the modified retrospective approach adoption method and, based on our analysis to date, does not believe there will be a material impact to the Company’s consolidated revenues upon adoption. However, the Company will present expanded disclosure in accordance with the requirements of the standard. The Company is currently evaluating those additional disclosures required as a result of the adoption of this guidance. In November 2015, the FASB issued ASU 2015 - 17, Balance Sheet Classification of Deferred Taxes (“ASU 2015 - 17” ), which simplifies the presentation of deferred income taxes by eliminating the need for entities to separate deferred income tax liabilities and assets into current and noncurrent amounts in a classified statement of financial position. This amendment is effective for annual periods beginning after December 15, 2016. During the first quarter of 2017, the Company adopted ASU 2015 - 17. The adoption of this standard did not have an impact on Avalon’s financial position, results of operations or financial statement disclosures. In February 2016, the FASB issued ASU 2016 - 02, Leases . The new standard establishes a right-of-use (“ROU”) model that requires a lessee to record a ROU asset and a lease liability on the balance sheet for all leases with terms longer than 12 months. Leases will be classified as either finance or operating, with classification affecting the pattern of expense recognition in the income statement. The new standard is effective for fiscal years beginning after December 15, 2018, including interim periods within those fiscal years. A modified retrospective transition approach is required for lessees for capital and operating leases existing at, or entered into after, the beginning of the earliest comparative period presented in the financial statements, with certain practical expedients available. Avalon is currently reviewing its agreements for its golf carts, machinery and equipment for the landfill operations, furniture and fixtures for The Avalon Inn and office copiers under operating leases and evaluating the impact the adoption of this guidance will have on its financial position, results of operations, cash flows and related disclosures. Upon adoption, the Company expects that the ROU asset and the lease liability will be recognized in the balance sheets in amounts that will be material. In March 2016, the FASB issued ASU 2016 - 09, Improvements to Employee Share-Based Payment Accounting (“ASU 2016 - 09” ), which simplifies several aspects of the accounting for employee share-based payment transactions including the accounting for income taxes, forfeitures, and statutory tax withholding requirements, as well as classification of related amounts within the statement of cash flows. During the first quarter of 2017, the Company adopted ASU 2016 - 09. The adoption of this standard did not have a material impact on Avalon’s financial position, results of operations or financial statement disclosures. In June 2016, the FASB issued ASU 2016 - 13, Measurement of Credit Losses on Financial Instruments (“ASU 2016 - 13” ), which significantly changes the way entities recognize impairment of many financial assets by requiring immediate recognition of estimated credit losses expected to occur over their remaining life. ASU 2016 - 13 is effective January 1, 2020, with early adoption permitted January 1, 2019. The adoption of this standard is not expected to have a material impact on Avalon’s financial position, results of operations or financial statement disclosures. In August 2016, the FASB issued ASU 2016 - 15, Classification of Certain Cash Receipts and Cash Payments (“ASU 2016 - 15” ), which is intended to reduce diversity in practice in how certain cash receipts and payments are presented and classified in the statement of cash flows. The standard provides guidance in a number of situations including, among others, settlement of zero -coupon bonds, contingent consideration payments made after a business combination, proceeds from the settlement of insurance claims, and distributions received from equity method investees. ASU 2016 - 15 also provides guidance for classifying cash receipts and payments that have aspects of more than one class of cash flows. ASU 2016 - 15 is effective for fiscal years beginning after December 15, 2017, with early adoption permitted. The standard requires application using a retrospective transition method. The adoption of this standard is not expected to have a material impact on Avalon’s financial position, results of operations or financial statement disclosures. In November 2016, the FASB issued ASU 2016 - 18, Statement of Cash Flows: Restricted Cash (“ASU 2016 - 18” ), which requires entities to include restricted cash and restricted cash equivalent balances with cash and cash equivalent balances in the statement of cash flows. ASU 2016 - 18 will be effective January 1, 2018 and will impact the presentation of our statement of cash flows for the remaining loan proceeds deposited into our project fund account that are not utilized in 2017 to fund the renovation and expansion of The Avalon Inn.

Note

Recent Accounting Pronouncements

May 2014,

the Financial Accounting Standards Board (“FASB”)

issued Accounting Standards Update (“ASU”)

2014

09,

Revenue from Contracts with Customers

(“ASU

2014

09”

). ASU

2014

clarifies the principles used to recognize revenue for all entities. ASU

2014

provides a unified

five

-step model to determine when and how revenue is recognized. The core principle is that a

company should recognize revenue to depict the transfer of promised goods or services to customers in an amount that reflects the consideration for which the entity expects to be entitled in exchange for those goods or services. The new standard replaces most of the existing revenue recognition standards in U.S. GAAP. In addition, in

March 2016,

the FASB issued ASU

2016

08,

Revenue from Contracts with Customers (Topic

606

): Principal versus Agent Considerations (Reporting Revenue Gross versus Net)

, which clarifies how to apply revenue recognition guidance related to whether an entity is a principal or an agent.

The Company has

reviewed the terms and conditions contained its contracts with customers relating to our brokerage and management services and captive landfill management activities for our waste management services segment. The Company is considering the terms and conditions of the contracts and the all-inclusive pricing for the service contained in those contracts in order to determine whether the waste management services provided to the customer meets the criteria to be accounted for under the series guidance. The Company also assessed whether the principal versus agent consideration would change how the Company presents revenue for these contracts. Under the contracts, the Company is primarily responsible for fulfilling the service and controls the service prior to transferring it to the customer. Based on our assessment, the Company is acting as the principal and primary obligor under the contracts, and should recognize revenue in the gross amount of consideration which it expects to be entitled in exchange for the service provided.

The Company also reviewed ASU

2014

for our golf and related operations segment relating to our annual membership contracts. Based on review of the contract

s, we expect to recognize membership dues over the membership term. As a practical expedient, the Company applied this guidance to the whole portfolio of annual membership contracts as all contracts have similar characteristics. The Company reasonably expects that the effect on the financial statements of applying this guidance to the portfolio of all membership contracts does

not

differ from applying this guidance to each individual contract.

The Company will adopt the new revenue standard in its

first

quarter of

2018.

The Company expects to finalize our analysis in the

fourth

quarter. The Company plans to use the modified retrospective approach adoption method and, based on our analysis to date, does

not

believe there will be a material impact to the Company’s consolidated revenues upon adoption. However, the Company will present expanded disclosure in accordance with the requirements of the standard. The Company is currently evaluating those additional disclosures required as a result of the adoption of this guidance.

November 2015,

the FASB issued ASU

2015

17,

Balance Sheet Classification of Deferred Taxes

(“ASU

2015

17”

), which simplifies the presentation of deferred income taxes by eliminating the need for entities to separate deferred income tax liabilities and assets into current and noncurrent amounts in a classified statement of financial position. This amendment is effective for annual periods beginning after

December 15, 2016.

During the

first

quarter of

2017,

the Company adopted ASU

2015

17.

The adoption of this standard did

not

have an impact on Avalon’s financial position, results of operations or financial statement disclosures.

February 2016,

the FASB issued ASU

2016

02,

Leases

. The new standard establishes a right-of-use (“ROU”) model that requires a lessee to record a ROU asset and a lease liability on the balance sheet for all leases with terms longer than

months. Leases will be classified as either finance or operating, with classification affecting the pattern of expense recognition in the income statement. The new standard is effective for fiscal years beginning after

December 15, 2018,

including interim periods within those fiscal years. A modified retrospective transition approach is required for lessees for capital and operating leases existing at, or entered into after, the beginning of the earliest comparative period presented in the financial statements, with certain practical expedients available. Avalon is currently reviewing its agreements for its golf carts, machinery and equipment for the landfill operations, furniture and fixtures for The Avalon Inn and office copiers under operating leases and evaluating the impact the adoption of this guidance will have on its financial position, results of operations, cash flows and related disclosures. Upon adoption, the Company expects that the ROU asset and the lease liability will be recognized in the balance sheets in amounts that will be material.

March 2016,

the FASB issued ASU

2016

09,

Improvements to Employee Share-Based Payment Accounting

(“ASU

2016

09”

), which simplifies several aspects of the accounting for employee share-based payment transactions including the accounting for income taxes, forfeitures, and statutory tax withholding requirements, as well as classification of related amounts within the statement of cash flows. During the

first

quarter of

2017,

the Company adopted ASU

2016

09.

The adoption of this standard did

not

have a material impact on Avalon’s financial position, results of operations or financial statement disclosures.

June 2016,

the FASB issued ASU

2016

13,

Measurement of Credit Losses on Financial Instruments

(“ASU

2016

13”

), which significantly changes the way entities recognize impairment of many financial assets by requiring immediate recognition of estimated credit losses expected to occur over their remaining life. ASU

2016

is effective

January 1, 2020,

with early adoption permitted

January 1, 2019.

The adoption of this standard is

not

expected to have a material impact on Avalon’s financial position, results of operations or financial statement disclosures.

August 2016,

the FASB issued ASU

2016

15,

Classification of Certain Cash Receipts and Cash Payments

(“ASU

2016

15”

), which is intended to reduce diversity in practice in how certain cash receipts and payments are presented and classified in the statement of cash flows. The standard provides guidance in a number of situations including, among others, settlement of

zero

-coupon bonds, contingent consideration payments made after a business combination, proceeds from the settlement of insurance claims, and distributions received from equity method investees. ASU

2016

also provides guidance for classifying cash receipts and payments that have aspects of more than

one

class of cash flows. ASU

2016

is effective for fiscal years beginning after

December 15, 2017,

with early adoption permitted. The standard requires application using a retrospective transition method. The adoption of this standard is

not

expected to have a material impact on Avalon’s financial position, results of operations or financial statement disclosures.

November 2016,

the FASB issued ASU

2016

18,

Statement of Cash Flows: Restricted Cash

(“ASU

2016

18”

), which requires entities to include restricted cash and restricted cash equivalent balances with cash and cash equivalent balances in the statement of cash flows. ASU

2016

will be effective

January 1, 2018

and will impact the presentation of our statement of cash flows for the remaining loan proceeds deposited into our project fund account that are

not

utilized in

2017

to fund the renovation and expansion of The Avalon Inn.