Quarterly report pursuant to Section 13 or 15(d)

Note 9 - Recently Adopted Accounting Pronouncements

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Note 9 - Recently Adopted Accounting Pronouncements
3 Months Ended
Mar. 31, 2019
Notes to Financial Statements  
New Accounting Pronouncements and Changes in Accounting Principles [Text Block]
NOTE
9
– RECENTLY ADOPTED ACCOUNTING PRONOUNCEMENTS
 
In
February 2016,
the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”)
2016
-
02,
 
Leases (Topic
842
)
. The FASB issued this ASU to increase transparency and comparability among organizations by recognizing lease assets and lease liabilities on the balance sheet by lessees for those leases classified as operating leases under current U.S. GAAP and disclosing key information about leasing arrangements. The amendments in this ASU were effective for the Company on
January 1, 2019.
The Company elected the
three
practical expedients allowed by the amendments as follows:
1
) forego an assessment of whether any existing contracts are or contain leases,
2
) forego an assessment of the classification of existing leases as to whether they are operating leases or capital leases, and
3
) forego an assessment of direct costs for any existing leases. Upon adoption on
January 1, 2019,
the Company recorded right-of-use assets and related lease liabilities of
$15.3
million and did
not
restate comparative periods. There was
no
impact on the Company’s consolidated statements of income or cash flows. See Note
6
– Leases for additional information.
 
In
June 2018,
the FASB issued ASU
2018
-
07,
Compensation – Stock Compensation (Topic
718
), Improvements to Nonemployee Share-Based Payment Accounting.
These amendments expand the scope of Topic
718,
Compensation - Stock Compensation, which only included share-based payments to employees, to include share-based payments issued to nonemployees for goods or services. Consequently, the accounting for share-based payments to nonemployees and employees are now substantially aligned. The ASU superseded Subtopic
505
-
50,
Equity – Equity-Based Payments to Non-Employees. The Company adopted this ASU effective
January 1, 2019.
However, the amendments did
not
have an impact on the Company’s Consolidated Financial Statements because it does
not
currently have any stock-based payment awards outstanding to nonemployees.
 
In
March 2017,
the FASB issued ASU
2017
-
08,
Receivables – Nonrefundable Fees and Other Costs (Subtopic
310
-
20
), Premium Amortization on Purchased Callable Debt Securities.
The amendments shorten the amortization period for certain callable debt securities held at a premium. Specifically, the amendments require the premium to be amortized to the earliest call date. The amendments do
not
require an accounting change for securities held at a discount; the discount continues to be amortized to maturity. The amendments in this ASU were effective for the Company as of
January 1, 2019.
The amendments in this ASU did
not
impact the Company’s Consolidated Financial Statements, as it has always amortized premiums to the
first
call date.