Note G - Recent Accounting Pronouncements

6 Months Ended

Dec. 31, 2019

Notes to Financial Statements

New Accounting Pronouncements and Changes in Accounting Principles [Text Block]

NOTE G - RECENT ACCOUNTING PRONOUNCEMENTS

On

June 16, 2016,

the FASB issued Accounting Standards Update

2016

-

13,

Financial Instruments - Credit Losses (Topic

326

) (the "ASU"), which introduces new guidance for the accounting for credit losses on instruments within its scope. Given the breadth of that scope, the new ASU will impact both financial services and non-financial services entities. The guidance in this ASU is effective for public entities that meet the definition of an SEC filer for fiscal years beginning after

December 15, 2019,

and interim periods within those years. Early adoption is permitted in annual periods beginning after

December 15, 2018.

Based on management's current understanding of this standard along with the underlying substance of our operations, management believes it will

not

have a material impact on our consolidated financial statements.

In

February 2016,

the FASB issued ASU

2016

-

02,

Leases, which aims to make leasing activities more transparent and comparable and requires substantially all leases be recognized by lessees on their balance sheet as a right-of-use asset and corresponding lease liability, including leases currently accounted for as operating leases. The new guidelines are contained in Accounting Standards Codification ASC Topic

842

- Leases ("ASC

842"

). This ASU is effective for all interim and annual reporting periods beginning after

December 15, 2018,

with early adoption permitted. The Company applied this standard retrospectively on

July 1, 2019

through a cumulative effect adjustment recognized as of

July 1, 2019.

In applying this standard, the Company elects to apply all practical expedients to

not

reassess the following:

1. Whether a pre-existing contract is or contain a lease

2. Whether a pre-existing lease should be classified as an operating or finance lease, and

3. Whether the initial direct costs capitalized for a pre-existing lease under the previously lease accounting standard ASC Topic 840 qualify for capitalization

As a result, the Company recorded its right-of-use assets and corresponding lease liabilities on its balance sheet beginning

July 1, 2019.

Other recent accounting pronouncements issued by the FASB, the AICPA and the SEC did

not

or are

not

believed by management to have a material effect, if any, on the Company's financial statements.