Quarterly report pursuant to Section 13 or 15(d)

Significant Accounting Policies (Policies)

v3.10.0.1
Significant Accounting Policies (Policies)
9 Months Ended
Sep. 30, 2018
Accounting Policies [Abstract]  
New Accounting Pronouncements, Policy [Policy Text Block]
In
March 2016,
the FASB published ASU
2016
-
08:
Revenue from Contracts with Customers (Topic
606
). The amendment clarifies the implementation guidance on principal versus agent considerations. In
April 2016,
the FASB published ASU
2016
-
10:
Revenue from Contracts with Customers (Topic
606
), which clarified application of the standard in identifying performance obligations and licensing arrangements. In
May 2016,
the FASB published ASU
2016
-
12:
Revenue from Contracts with Customers (Topic
606
), which included narrow-scope improvements and practical expedients. Specifically the update addresses application of collectability, presentation of sales taxes, noncash consideration, and completed contracts and contract modifications at transition. In
May 2014,
the FASB published ASU
2014
-
09:
Revenue from Contracts with Customers (Topic
606
), which supersedes (i) revenue recognition requirements in Topic
605
and most related industry-specific guidance, and (ii) cost guidance included in Subtopic
605
-
35,
Revenue Recognition—Construction-Type and Production-Type Contracts, and amends existing requirements for recognition of a gain/loss on the transfer of nonfinancial assets that are
not
in a contract with a customer (for example, assets within the scope of Topic
360,
Property, Plant, and Equipment, and intangible assets within the scope of Topic
350,
Intangibles—Goodwill and Other) to be consistent with the new requirements. In
August 2015,
the FASB published ASU
2015
-
14
Topic
606
which effectively postponed the effective adoption requirement by
one
year such that the standard is effective for years beginning after
December 15, 2017
including interim periods with those years. The impact of the adoption of the standard is outlined above more detail in note
2
to these consolidated financial statements.
  
In
January 2016,
the FASB published ASU
2016
-
01:
Financial Instruments - Overall (Topic
825
-
10
). The amendment addresses certain aspects of recognition, measurement, presentation and disclosure of financial assets and liabilities. The amendments in this ASU are effective for public business entities for fiscal years beginning after
December 15, 2017,
including interim periods within those fiscal years. The impact of adoption of the standard had
no
material impact on the consolidated financial statements.
 
In
August 2016,
the FASB published ASU
2016
-
15
Statement of Cash Flows (Topic
230
): Classification of Certain Cash Receipts and Cash Payments. This Accounting Standards Update addresses the following
eight
specific cash flow issues: Debt prepayment or debt extinguishment costs; settlement of
zero
-coupon debt instruments or other debt instruments with coupon interest rates that are insignificant in relation to the effective interest rate of the borrowing; contingent consideration payments made after a business combination; proceeds from the settlement of insurance claims; proceeds from the settlement of corporate-owned life insurance policies (COLIs) (including bank-owned life insurance policies (BOLIs)); distributions received from equity method investees; beneficial interests in securitization transactions; and separately identifiable cash flows and application of the predominance principle. The amendment is effective for years beginning after
December 15, 2017
including interim periods within those years. The impact of the adoption of this standard had
no
impact on the consolidated statements of cash flows.
 
In
November 2016,
the FASB published ASU
2016
-
18
Statement of Cash Flows (Topic
230
): Restricted Cash. This update addresses the requirement that a statement of cash flows explain the change during the period in the total of cash, cash equivalents, and amounts generally described as restricted cash or restricted cash equivalents. Therefore, amounts generally described as restricted cash and 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 flows. The amendment is effective for years beginning after
December 15, 2017
including interim periods with those years. The impact of adoption of the standard is expected to result in a modification to the current presentation of the statement of cash flows such that restricted cash is
not
presented as an investing activity, but is presented as part of the net change in cash from beginning to the ending balance. The impact of the adoption of this standard had
no
impact on the consolidated statements of cash flows as there were
no
restricted cash balances in any periods presented.
 
Recent Accounting Pronouncements
Not
Yet Adopted
  
In
February 2016,
the FASB published ASU
2016
-
02:
Leases (Topic
842
). The amendment requires that all lessees should recognize the assets and liabilities that arise from leases. Elections
may
be available for those leases with terms of
12
months or less. The amendment still retains the distinction between finance leases and operating leases. In
July 2018,
the FASB published ASU
2018
-
10
(Topic
842
). The update provides codification improvements to the application of the standard. In
July 2018,
the FASB published ASU
2018
-
11
(Topic
842
). The update provides clarification on comparative reporting at time of adoption, specifically this amendment allows an entity initially applying the new leases standard at the adoption date and recognizes a cumulative-effect adjustment to the opening balance of retained earnings. Accordingly, comparative periods will continue to be presented in accordance with current GAAP. The amendments in this ASU are effective for public business entities for financial statements issued for fiscal years beginning after
December 15, 2018,
and interim periods within those fiscal years. The impact of the adoption of the standard is expected to result in the recognition of all leases with the corresponding assets and liabilities recorded in the consolidated financial statements. Management has identified the leases that are expected to qualify under the standard. Management expects property, plant and equipment will increase with a right of use asset with a corresponding lease obligation. In addition, what would previously be recorded as rent expense associated with operating leases, will be recorded as amortization expense over the term of the lease with corresponding interest expense on the draw-down of the lease liability. The Company will use the modified retrospective adoption method and short term lease practical expedient to exclude those leases with a term of less than
12
months.
  
In
May 2016,
the FASB published ASU
2016
-
13
Financial Instruments – Credit Losses (Topic
326
): Measurement of Credit Losses on Financial Instruments. The main objective of this Update is to provide financial statement users with more decision-useful information about the expected credit losses on financial instruments and other commitments to extend credit held by a reporting entity at each reporting date. To achieve this objective, the amendments in this Update replace the incurred loss impairment methodology in current U.S. GAAP with a methodology that reflects expected credit losses and requires consideration of a broader range of reasonable and supportable information to inform credit loss estimates. The amendment is effective for years beginning after
December 15, 2019
including interim periods with those years. The impact of adoption of the standard has
not
yet been determined.
 
In
June 2018,
the FASB published ASU
2018
-
07:
Compensation – Stock Compensation (Topic
718
): Improvements to Non-employee Share-Based Payment Accounting. The amendment simplifies the application of share-based payment accounting for non-employees. The amendments in this ASU are effective for public business entities for financial statements issued for fiscal years beginning after
December 15, 2018,
and interim periods within those fiscal years. The impact of the adoption of the standard is
not
expected to have a material impact on the consolidated financial statements.
 
In
August 2018,
the FASB published ASU
2018
-
13:
Fair Value Measurement (Topic
820
): Disclosure Framework – Changes to the Disclosure Requirements for Fair Value Measurement. The amendment includes the removal, modification and additional of disclosure requirements under Topic
820.
The amendments in this ASU are effective for all entities for fiscal years, and interim periods within those fiscal years, beginning after
December 15, 2019.
The impact of the adoption of the standard is
not
expected to have a material impact on the consolidated financial statements.