Note 1 - Basis of Presentation

3 Months Ended

Mar. 31, 2018

Notes to Financial Statements

Organization, Consolidation and Presentation of Financial Statements Disclosure and Significant Accounting Policies [Text Block]

Note

1.

       Basis of Presentation

The accompanying unaudited financial statements of CKX Lands, Inc. (“Company”) have been prepared in accordance with United States generally accepted accounting principles for interim financial information. They do

not

include all information and footnotes required by United States generally accepted accounting principles for complete financial statements. Except as described herein, there has been

no

material change in the information disclosed in the notes to the financial statements included in our financial statements as of and for the year ended

December 31, 2017.

In the opinion of management, all adjustments (consisting of normal recurring accruals) considered necessary for a fair presentation have been included in the accompanying financial statements. Certain amounts have been reclassified to conform to the current period’s presentation, including oil and gas, timber, and surface, from general and administrative costs and expenses on the statements of income.

In

May 2014,

the FASB issued ASU

2014

-

09,

Revenue from Contracts with Customers

 

(Topic

606

),

 which supersedes most current revenue recognition guidance, including industry-specific guidance. Subsequently, the FASB has issued updates which provide additional implementation guidance. The new guidance requires companies to recognize revenue to depict the transfer of promised goods or services to customers in an amount that reflects the consideration it expects to be entitled to in exchange for those goods or services.  We adopted this guidance in the

first

quarter of

2018

applying the modified retrospective approach.  We have completed our review of all revenue sources in scope for the new standard, and stumpage agreements are within this scope. In accordance with the new standard, the basis for determining revenue and expenses allocable to stumpage agreements (timber revenue) was

not

modified.  There was

no

net cumulative effect adjustment for this change as of

January 1, 2018.

Interim results are

not

necessarily indicative of results for a full year. These financial statements and accompanying notes should be read in conjunction with the Company’s Form

10

-K for the year ended

December 31, 2017

and Form

10

-Q for the quarterly period ended

March 31, 2018.