XML 21 R10.htm IDEA: XBRL DOCUMENT v3.8.0.1
RECENTLY ISSUED ACCOUNTING STANDARDS
9 Months Ended
Mar. 31, 2018
New Accounting Pronouncements and Changes in Accounting Principles [Abstract]  
RECENTLY ISSUED ACCOUNTING STANDARDS
RECENTLY ISSUED ACCOUNTING STANDARDS

In May 2014, and as subsequently amended, guidance for revenue recognition was issued which supersedes the revenue recognition requirements currently followed by the Company. The new guidance provides for a single five-step model to be applied in determining the amount and timing of the recognition of revenue related to contracts with customers. The new standard also requires additional financial statement disclosures that will enable users to understand the nature, amount, timing and uncertainty of revenue and cash flows relating to customer contracts. Companies have an option to use either a full retrospective approach or a modified retrospective approach to implement the standard. The guidance is effective for annual reporting periods beginning after December 15, 2017 (effective July 1, 2018 for the Company). The Company initiated a project to evaluate the impact that the new accounting guidance will have on its consolidated financial statements and related disclosures, which included identifying the material revenues streams and reviewing a representative sample of contracts. The Company is still in process of finalizing its evaluation, but has identified that for mailback and unused medication solutions, under the new guidance, the Company will recognize revenue over two performance obligations rather than the three separate elements under the current guidance. The Company is still evaluating the quantitative impact to the amount and timing of revenue recognition for the change to the identified performance obligations for the mailback solution. The Company is still evaluating the impact of the new standard on route-based pick up solution. No material changes to the amount and timing of revenue recognition over the third party treatment and other solutions are expected. The Company expects to adopt the standard using the modified retrospective approach, which involves retrospectively adopting the standard by recording a cumulative effect adjustment to all uncompleted contracts at July 1, 2018. The Company will continue to evaluate the standard as well as additional changes, modifications or interpretations which may impact the Company.

In February 2016, guidance for leases was issued, which requires balance sheet recognition for rights and obligations of all leases with terms in excess of twelve months. The new guidance also requires additional disclosures about the amount, timing and uncertainty of cash flows arising from leases. The provisions of the new guidance are effective for annual periods beginning after December 15, 2018 (effective July 1, 2019 for the Company), including interim periods within the reporting period, and early application is permitted. The Company is in the initial stages of evaluating the impact of the new guidance on its consolidated financial statements and related disclosures as well as evaluating the available transition methods. The Company will continue to evaluate the standard as well as additional changes, modifications or interpretations which may impact the Company.