Recent and New Accounting Pronouncements

3 Months Ended

Mar. 31, 2015

Accounting Changes and Error Corrections [Abstract]

Recent and New Accounting Pronouncements

Recent and New Accounting Pronouncements — In May 2014, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) No. 2014-09, Revenue from Contracts with Customers. ASU 2014-09 creates a five-step model that requires companies to exercise judgment when considering all relevant facts and circumstances in the determination of when and how revenue is recognized. When ASU 2014-09 was issued, it was effective for annual reporting periods beginning after December 15, 2016, for publicly traded companies and any interim periods that fall within that reporting period. Early application was not permitted. On April 1, 2015, the FASB proposed a one-year delay of the effective date for this new standard. If the proposal is finalized, the standard would be effective in 2018 for calendar year-end public entities. The proposal is expected to include an option for public and private companies to early adopt. Early adoption may be allowed in 2017 for calendar year-end public companies. Once issued, the proposal is expected to have a 30-day comment period. ASU 2014-09 was effective on January 1, 2017 for SPŌK. If the proposal is approved as communicated, the effective date of the standard would move to January 1, 2018. The two permitted transition methods under the new standard are the full retrospective method, in which case the standard would be applied to each prior reporting period presented, or the modified retrospective method, in which case the cumulative effect of applying the standard would be recognized at the date of initial application. We have not selected a transition method. We are also evaluating the potential impact from this ASU on our consolidated financial statements.