Note B - Recent Accounting Pronouncements

3 Months Ended

Mar. 31, 2020

Notes to Financial Statements

Accounting Standards Update and Change in Accounting Principle [Text Block]

NOTE

B

: RECENT ACCOUNTING PRONOUNCEMENTS

In

March 2020,

the FASB issued ASU

No.

2020

-

04,

(“ASU

2020

-

04”

), Reference Rate Reform (Topic

848

): Facilitation of the Effects of Reference Rate Reform on Financial Reporting. ASU

2020

-

04

was issued to provide optional guidance for a limited period of time to ease the potential burden in accounting for reference rate reform on financial reporting. ASU

2020

-

04

is effective as of

March 12, 2020

through

December 31, 2022.

The Company has evaluated the provisions of this standard and determined that it is applicable to our line of credit and investment margin account. The London Interbank Offered Rate “LIBOR” is the basis for interest charges on outstanding borrowings for both our line of credit and investment margin account. The scheduled discontinuation of LIBOR is

not

expected to materially alter any provisions of either of these debt instruments, except for the identification of a replacement reference rate. The Company has evaluated the new guidance and does

not

expect it to have a material impact on its financial condition, results of operations, or cash flows.

In

June 2016,

the FASB issued ASU

No.

2016

-

13,

(“ASU

2016

-

13”

), Accounting for Credit Losses (Topic

326

). ASU

2016

-

13

requires the use of an “expected loss” model on certain types of financial instruments. The standard also amends the impairment model for available-for-sale debt securities and requires estimated credit losses to be recorded as allowances instead of reductions to the amortized cost of the securities. ASU

2016

-

13

is effective for fiscal years, and interim periods within those years, beginning after

December 15, 2019,

with early adoption permitted. The adoption of this guidance on

January 1, 2020

did

not

have a material impact on the Company’s financial condition, results of operations, or cash flows.