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Note 2 - Recent Accounting Pronouncements Not Yet Adopted

v3.6.0.2
Note 2 - Recent Accounting Pronouncements Not Yet Adopted
9 Months Ended
Jan. 01, 2017
Notes to Financial Statements  
Significant Accounting Policies [Text Block]
NOTE
2.
RECENT ACCOUNTING PRONOUNCEMENTS NOT YET ADOPTED
 
In
May
2014,
the Financial Accounting Standard Board (“FASB”) issued Accounting Standards Update (“ASU”) No.
2014
-
09,
Revenue from Contracts with Customers (Topic
606).
The core principle of ASU
2014
-
09
is that revenue should be recognized in a manner that depicts the transfer of promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services. ASU
2014
-
09
defines a
five
-step process in order to achieve this core principle which
may
require the use of judgment and estimates. The entity
may
adopt ASU
2014
-
09
either by using a full retrospective approach for all periods presented or a modified retrospective approach. This standard is effective for annual reporting periods beginning after
December
15,
2017.
Earlier application is permitted only as of annual reporting periods beginning after
December
15,
2016.
We have not yet selected a transition method and are currently in the initial stages of evaluating the effect of adoption of this standard, if any, on our consolidated financial position, results of operations or cash flows.
 
In
July
2015,
the FASB issued ASU No.
2015
-
11,
Inventory (Topic
330):
Simplifying the Measurement of Inventory. ASU
2015
-
11
primarily provides that an entity using an inventory method other than last-in,
first
out ("LIFO") or the retail inventory method should measure inventory at the lower of cost and net realizable value. The new guidance clarifies that net realizable value is the estimated selling price in the ordinary course of business, less reasonably predictable costs of completion, disposal, and transportation. This standard is effective for annual reporting periods beginning after
December
15,
2016.
We are currently evaluating the effect of adoption of this standard, if any, on our consolidated financial position, results of operations or cash flows.
 
In
January
2016,
the FASB issued ASU No.
2016
-
01,
Financial Instruments - Overall (Subtopic
825
-
10),
Recognition and Measurement of Financial Assets and Financial Liabilities, which addresses certain aspects of recognition, measurement, presentation, and disclosure of financial instruments. ASU
2016
-
01
will be effective for
fiscal years beginning after
December
15,
2017,
including interim periods within those fiscal years, and early adoption is not permitted.
We are currently evaluating the effect of adoption of this standard, if any, on our consolidated financial position, results of operations or cash flows.
 
In
February
2016,
the FASB issued ASU No.
2016
-
02,
 
Leases: (Topic
842)
to amend the existing accounting standards for leases. The amendments require lessees to recognize, on the balance sheet, assets and liabilities for the rights and obligations created by leases of greater than
twelve
months. The accounting by lessors will remain largely unchanged from that applied under previous U.S. GAAP. We are required to adopt the amendments in the
first
quarter of fiscal
2019,
with early adoption permitted. The amendments require a modified retrospective transition approach to recognize and measure leases at the beginning of the earliest period presented. We are currently evaluating the impact of these amendments and the transition alternatives on its consolidated financial statements.
 
In
March
2016,
the FASB issued ASU No.
2016
-
08,
 
Revenue from Contracts with Customers (Topic
606):
 Principal versus Agent Considerations, to clarify the implementation guidance on principal versus agent considerations and address how an entity should assess whether it is the principal or the agent in contracts that include
three
or more parties. The effective date and transition requirements for these amendments are the same as the effective date and transition requirements of ASU
2014
-
09.
We are currently in the initial stages of evaluating the impact of these amendments on our financial statements.
 
In
March
2016,
the FASB issued ASU No. 
2016
-
09
, Compensation-Stock Compensation (Topic
718):
Improvements to Employee Share-Based Payment Accounting
, to reduce complexity in accounting standards involving several aspects of the accounting for employee share-based payment transactions, including
(1)
the income tax consequences,
(2)
classification of awards as either equity or liabilities, and
(3)
classification on the statement of cash flows. The amendments will be effective for financial statements issued for fiscal years beginning after
December
15,
2016,
including interim periods within those fiscal years, and early adoption is permitted. An entity that elects early adoption must adopt all of the amendments in the same period. The manner of application varies by the various provisions of the guidance, with certain provisions applied on a retrospective or modified retrospective approach, while others are applied prospectively. We are currently evaluating the impact of these amendments on our financial statements.
 
In
April
2016,
the FASB issued ASU No.
2016
-
10,
 
Revenue from Contracts with Customers, Topic
606
– Identifying Performance Obligations and Licensing
, which clarifies implementation issues that will arise when implementing ASU
2014
-
09.
The amendments in this update clarify the following
two
aspects of Topic
606:
identifying performance obligations and the licensing implementation guidance, while retaining the related principles for those areas. Before an entity can identify its performance obligation in a contract with a customer, the entity
first
identifies the promised goods or services in the contract. The amendments in this Update are expected to reduce the cost and complexity of applying the guidance on identifying promised goods or services. Topic
606
includes implementation guidance on determining whether an entity’s promise to grant a license provides a customer with either a right to use the entity’s intellectual property or a right to access the entity’s intellectual property. The amendments in this Update are intended to improve the operability and understandability of the licensing implementation guidance. The effective date and transition requirements for the amendments in this Update are the same as the effective date and transition requirements in Topic
606
(and any other Topic amended by Update
2014
-
09).
We are currently in the initial stages evaluating the impact of these amendments and the transition alternatives on its consolidated financial statements.
 
In
June
2016,
the FASB issued ASU No.
2016
-
13,
Financial Instruments —Credit Losses, Topic
326
- Measurement of Credit Losses on Financial Instruments
,
which requires credit losses on financial assets measured at their amortized cost basis to be presented at the net amount expected to be collected, not on their incurred losses. Further, credit losses on available-for-sale debt securities should be recorded through an allowance for credit losses limited to the amount by which fair value is below amortized cost. The new standard is effective for fiscal years beginning after
December
15,
2019,
including interim periods within those fiscal years,
and early adoption is permitted. We do not expect the adoption of this guidance will have a material impact on our consolidated financial position, results of operations or cash flows.
 
In
December
2016,
the FASB issued ASU No.
2016
-
20,
Technical Corrections and Improvements to Topic
606,
Revenue from Contracts with Customers,
which is intended to clarify or correct narrow aspects of the guidance issued in Update
2014
-
09,
which is not yet effective. The effective date and transition requirements for the amendments are the same as the effective date and transition requirements for Topic
606
(and any other Topic amended by Update
2014
-
09).
We are currently in the initial stages of evaluating the impact of these amendments on our financial statements.