Note 11 - Recent Accounting Pronouncements

3 Months Ended

Jan. 31, 2018

Notes to Financial Statements

New Accounting Pronouncements and Changes in Accounting Principles [Text Block]

11. RECENT ACCOUNTING PRONOUNCEMENTS

In

May 2014,

the FASB issued ASU

No.

2014

-

09,

“Revenue from Contracts with Customers (Topic

606

)”, which stipulates 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 the entity expects to be entitled in exchange for those goods or services. To achieve this core principle, an entity should apply the following steps: (

1

) identify the contract(s) with a customer, (

2

) identify the performance obligations in the contract, (

3

) determine the transaction price, (

4

) allocate the transaction price to the performance obligations in the contract and (

5

) recognize revenue when (or as) the entity satisfies a performance obligation. In

August 2015,

the FASB issued ASU

2015

-

14,

which deferred the effective date of the ASU to fiscal years beginning after

December 15, 2017,

and interim periods within those fiscal years. Early adoption is permitted for fiscal years beginning after

December 15, 2016.

Companies

may

use either a full retrospective or a modified retrospective approach to adopt this ASU. The Company plans to adopt the ASU effective the

first

quarter of fiscal year

2019

using a modified retrospective method. During fiscal year

2018

we will be conducting a review of contracts to identify gaps between our current revenue recognition policies and the new standard so that we can quantify any impact to our current consolidated financial statements.

In

February 2016,

the FASB issued ASU

2016

-

02,

"Leases", which is intended to improve financial reporting about leasing transactions.  This ASU requires that leased assets be recognized as assets on the balance sheet and the liabilities for the obligations under the lease also be recognized on the balance sheet.  This ASU requires disclosures to help investors and other financial statement users better understand the amount, timing, and uncertainty of cash flows arising from leases.  The required disclosures include qualitative and quantitative requirements.  This ASU is effective for fiscal years beginning after

December 15, 2018

and interim periods within those fiscal years.  Early adoption is permitted. The new standard must be adopted using a modified retrospective transition, and provides for certain practical expedients. Transition will require application of the new guidance at the beginning of the earliest comparative period presented. The Company is currently in the process of evaluating our adoption timing and cannot currently estimate the financial statement impact of the adoption, but the Company does

not

expect adoption until fiscal year

2020.

In

August 2017,

FASB issued ASU

2017

-

12,

Derivatives and Hedging (Topic

815

): Targeted Improvements to Accounting for Hedging Activities.  The targeted amendments help simplify certain aspects of hedge accounting and result in a more accurate portrayal of the economics of an entity’s risk management activities in its financial statements.  For cash flow and net investment hedges as of the adoption date, the guidance requires a modified retrospective approach. The amended presentation and disclosure guidance is required only prospectively. The amendments are effective for the Company’s fiscal year beginning

November 1, 2019,

with early adoption permitted.  The Company is currently evaluating the accounting, transition, and disclosure requirements of the standard and cannot currently estimate the financial statement impact of adoption.