New and Recently Adopted Technical and Accounting Pronouncements

12 Months Ended

Jun. 30, 2016

Notes to Financial Statements

Note 3 - New and Recently Adopted Technical and Accounting Pronouncements

In August 2014, FASB issued Accounting Standards Update (“ASU”) No. 2014-15, Presentation of Financial Statements – Going Concern; Disclosures of Uncertainties about an Entity’s Ability to Continue as a Going Concern. The amendments in this update provide guidance in GAAP about management’s responsibility to evaluate whether there is a substantial doubt about an entity’s ability to continue as a going concern and to provide related footnote disclosures. In doing so, the amendments should reduce diversity in the timing and content of footnote disclosures. The guidance is effective for the annual period ending after December 15, 2016, and for annual periods and interim periods thereafter. Early adoption is permitted but not required; at this time we are not early adopting.

In November 2015, FASB issued Accounting Standard Update (“ASU”) No. 2015-17, Income taxes – Balance Sheet Classification of Deferred Taxes. The standard changes how deferred taxes are classified on an entity’s balance sheets. The standard eliminated the current requirement for entities to present deferred tax liability and asses as current and noncurrent in a classified balance sheet. The standard is effective for financial statements issued for annual periods beginning after December 15, 2016, with early adopting permitted, and may be applied prospectively or retrospectively.

In March 2016, FASB issued Accounting Standard Update (“ASU”) No. 2016-09, Compensation – Stock Compensation: Improvements to Employee Share-Based Payment Accounting. The new guidance requires entities to recorded all excess tax benefits and tax deficiencies as income tax expense or benefit in the income statement when awards vest or are settled. The standard is effective for financial statements issued for fiscal years beginning after December 15, 2016, with early adoption permitted.

In August 2016, FASB issued Accounting Standard Update (“ASU”) No. 2016-15, Statement of Cash Flow: Classification of Certain Cash Receipts and Cash Payments. The standard provides guidance for eight targeted changes with respect to how cash receipts and cash payments are classified in the statement of cash flows, with the objective of reducing diversity in practice. The standard is effective for financial statements issued for fiscal years beginning after December 15, 2017, with early adoption permitted.

The Company is currently evaluating the impacts of the adoption of the accounting standards stated above and its impact on the financial statements.