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8. Statements of Financial Accounting Standards
12 Months Ended
Dec. 31, 2018
Notes to Financial Statements  
Statements of Financial Accounting Standards

The Company does not believe that the recently issued Statements of Financial Accounting Standards will have any material impact on the Company’s Consolidated Statements of Operations or its Consolidated Balance Sheets except:

 

On February 25, 2016, the FASB issued ASU 2016-02, its leasing standard for both lessees and lessors. Under its core principle, a lessee will recognize lease assets and liabilities on the balance sheet for all arrangements with terms longer than 12 months. The new standard takes effect in 2019 for public business entities. This will have the effect of increasing the value of the assets and liabilities of the Company but will have no material effect on the Consolidated Statement of Operations.

 

In May 2014, the FASB issued ASU 2014-09 regarding Revenue From Contract With Customers. The new standard became effective in January 2018.This change had no material impact on the financial statements since the deferred franchise fees are approximately equal to the deferred cost.