Our accounting policies are as set forth in the notes to the consolidated financial statements referred to above.

 

In the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) No. - "Revenue from Contracts with Customers (Topic as amended, which will supersede nearly all existing revenue recognition guidance. ASU - provides a single, comprehensive revenue recognition model for all contracts with customers. ASU - require a company to recognize revenue to depict the transfer of goods or services to a customer at an amount that reflects the consideration it expects to receive in exchange for those goods or services. ASU - also requires additional disclosure about the nature, amount, timing and uncertainty of revenue and cash flows arising from customer contracts, including significant judgments and changes in judgments and assets recognized from costs incurred to obtain or fulfill a contract. ASU - as amended, is effective for annual reporting periods beginning after (including interim reporting periods within those periods). Early adoption is permitted for ASU - as amended, to the original effective date of the period beginning after (including interim reporting periods within those periods). ASU - be applied retrospectively to each prior period presented or retrospectively with the cumulative effect recognized as of the date of initial application. The Company is currently in the early stages of evaluating this ASU to determine the impact it will have on our financial statements. Also, the Company is currently still reviewing the transition method it will select upon adoption of this guidance.

In the FASB issued ASU No. - “Leases (Topic Under ASU - an entity will be required to recognize right-of-use assets and lease liabilities on its balance sheet and disclose key information about leasing arrangements. ASU - offers specific accounting guidance for a lessee, a lessor and sale and leaseback transactions. Lessees and lessors are required to disclose qualitative and quantitative information about leasing arrangements to enable a user of the financial statements to assess the amount, timing and uncertainty of cash flows arising from leases. For public companies, ASU - is effective for annual reporting periods beginning after   including interim periods within that reporting period, and requires a modified retrospective adoption, with early adoption permitted. The Company is still evaluating the potential impact of adopting this guidance on our financial statements.

 

In the FASB issued ASU - "Statement of Cash Flows (Topic Classification of Certain Cash Receipts and Cash Payments (a consensus of the Emerging Issues Task Force)," which aims to eliminate diversity in practice in how certain cash receipts and cash payments are presented and classified in the statement of cash flows under Topic Statement of Cash Flows, and other Topics. Subsequently, in the FASB issued ASU - "Statement of Cash Flows (Topic Restricted Cash, a consensus of the FASB Emerging Issues Task Force," which clarifies the guidance on the cash flow classification and presentation of changes in restricted cash or restricted cash equivalents. Therefore, amounts generally described as restricted cash or restricted cash equivalents should be included with cash and cash equivalents when reconciling the beginning-of-period and end-of-period total amounts shown on the statement of cash flow. ASU - and ASU - are effective for annual reporting periods, and interim periods therein, beginning after The Company does not expect the adoption of these ASUs to have a material impact on our financial statements.

 

In the FASB issued ASU - “Income Taxes (Topic Intra-Entity Transfers of Assets Other Than Inventory,” which eliminates the existing exception in U.S. GAAP prohibiting the recognition of the income tax consequences for intra-entity asset transfers. Under ASU - entities will be required to recognize the income tax consequences of intra-entity asset transfers other than inventory when the transfer occurs. ASU - is effective on a modified retrospective basis for fiscal years, and for interim periods within those fiscal years, beginning after with early adoption permitted. The Company is still evaluating the potential impact of this ASU on its consolidated financial statements.

 

In the FASB issued ASU No. - “Business Combinations (Topic – Clarifying the Definition of a Business.”  ASU - the definition of a business with the objective of adding guidance to assist entities with evaluating whether transactions should be accounted for as acquisitions (or disposals) of assets or businesses.  The definition of a business affects many areas of accounting including acquisition, disposals, goodwill and consolidation. This standard is effective for fiscal years beginning after including interim periods within that reporting period. The Company does not expect the adoption of this ASU to have a material impact on its consolidated financial statements

 

In the FASB issued ASU No. - “Accounting Changes and Error Corrections (Topic and Investments – Equity Method and Joint Ventures (Topic – Amendments to SEC Paragraphs Pursuant to staff Announcements at the and EITF Meetings.”  This amendment states that registrants should consider additional qualitative disclosures if the impact of an issued but not yet adopted ASU is unknown or cannot be reasonably estimated and to include a description of the effect of the accounting policies that the registrant expects to apply, if determined. Transition guidance included in certain issued but not yet adopted ASUs were also updated to reflect this update. The Company does not expect the adoption of the new accounting rules to have a material impact on the Company’s financial condition, results of operations and cash flows.