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Recently Issued Accounting Pronouncements
12 Months Ended
Dec. 31, 2017
Accounting Changes And Error Corrections Abstract  
Recently Issued Accounting Pronouncements

2. Recently Issued Accounting Pronouncements

Business Combinations.  In January 2017, the FASB issued Accounting Standards Update (“ASU”) 2017-01, Business Combinations: Clarifying the Definition of a Business (“ASU 2017-01”) in order to clarify the definition of a business as it relates to whether transactions should be accounted for as acquisitions (or disposals) of assets or businesses.  Effective January 1, 2018, the Company adopted ASU 2017-01, which will not have a material impact on the Company’s consolidated financial statements.

 

Leases.  In February 2016, the FASB issued ASU 2016-02, Leases (“ASU 2016-02”), which will require organizations that lease assets to recognize on the balance sheet the assets and liabilities for the rights and obligations created by those leases. ASU 2016-02 is effective for the annual period beginning after December 15, 2018, including interim periods within those fiscal years, and early adoption is permitted.   Entities must adopt the standard using a modified retrospective transition and apply the guidance to the earliest comparative period presented, with certain practical expedients that entities may elect to apply. Management is currently assessing the impact the adoption of ASU 2016-02 will have on our consolidated financial statements.

 

Revenue Recognition.  In May 2014, the FASB issued ASU 2014-09, Revenue from Contracts with Customers (“ASU 2014-09”). The objective of ASU 2014-09 is greater consistency and comparability across industries by using a five-step model to recognize revenue from customer contracts.  Effective January 1, 2018, the Company adopted ASU 2014-09, using the modified retrospective method applied to contracts that were not completed as of January 1, 2018.  We have reviewed various contracts that represent our material revenue streams and determined that there was no material impact to our financial position, results of operations or liquidity.  Upon adoption of this ASU, we were not required to record a cumulative adjustment to beginning retained earnings. The Company continues to review its implementation documentation and its evaluation of the new disclosure requirements is ongoing.