| Summary of Significant Accounting Policies | 3. SUMMARY OF SIGNIFICANT ACCOUNTING
POLICIES
(a) Basis of preparation
These consolidated financial statements have been prepared in
accordance with generally accepted accounting principles in the
United States (“U.S. GAAP”).
(b) Basis of consolidation
The consolidated financial statements include the financial
statements of Global-Tech and its subsidiaries. The fiscal year end
date of Lite Array Holdings Limited (“Lite Array
Holdings”), a jointly-controlled entity of the Company, is
December 31. There have been no significant transactions in
Lite Array Holdings and its subsidiaries which would materially
affect the Company’s financial position and results of
operations during each of the periods from Lite Array
Holdings’ fiscal year end date to March 31, 2015, 2014
and 2013, respectively.
All significant intercompany balances and transactions between
group companies are eliminated on consolidation.
(c) Discontinued operations
Unless otherwise indicated, information presented in the notes to
the consolidated financial statements relates only to
Global-Tech’s continuing operations. Information related to
discontinued operations is included in note 18 and in some
instances, where appropriate, is included as separate disclosure
within the individual footnotes.
(d) Use of estimates
The preparation of these consolidated financial statements in
conformity with U.S. GAAP requires management to make estimates,
judgments and assumptions. These estimates, judgments and
assumptions affect the amounts that are reported in these
consolidated financial statements and accompanying disclosures. The
accounting estimates with regard to these consolidated financial
statements that require the most significant and subjective
judgments include, but are not limited to, valuation of investments
and determination of other-than-temporary impairment, useful lives
of property, plant and equipment, recoverability of long-lived
assets, determination of impairment losses, assessment of market
value of inventories and provision for inventory obsolescence,
allowance for doubtful accounts, provision for employee benefits,
provision for warranty, recognition and measurement of current and
deferred income taxes (including income tax benefit (expense)),
valuation allowance for deferred tax assets, assumptions used for
the valuation of options to purchase Global-Tech’s common
stock, provision for loss contingencies, and measurement of fair
values of financial instruments. Changes in facts and circumstances
may result in revised estimates.
(e) Cash and cash equivalents
Cash and cash equivalents consist of cash on hand and bank
deposits, which are unrestricted to withdraw and use, and other
investments that are readily convertible into cash with original
maturities of three months or less.
(f) Restricted cash
Restricted cash consists of bank deposits, which may only be used
to settle pre-arranged general banking facilities.
(g) Investments
Debt and equity investments designated as available-for-sale
investments are stated at fair value. Unrealized gains or losses,
net of tax, on available-for-sale investments are included in
accumulated other comprehensive income (loss), a separate component
of shareholders’ equity. Realized gains and losses and any
declines in fair value judged to be other-than-temporary on
available-for-sale investments are included in the consolidated
statement of operations and comprehensive income. Gains or losses
on sale of investments and amounts reclassified from accumulated
other comprehensive income (loss) to earnings are computed based on
the specific identification method. Interest or dividend income on
securities classified as available-for-sale investments is included
in interest income or dividend income, respectively.
Non-derivative securities with fixed or determinable payments and
fixed maturities are classified as held-to-maturity investments if
the Company has both the positive intention and ability to hold the
financial assets to maturity. Investments intended to be held to
maturity are measured at amortized cost. Interest on securities
classified as held-to-maturity investments is included in interest
income.
Prior to April 1, 2009, declines in the fair value of
held-to-maturity and available-for-sale securities below their
amortized cost, that were deemed to be other-than-temporary, were
all reported in investment gains (losses), net. Effective
April 1, 2009, the Company adopted new accounting guidance for
impairment of debt securities that are deemed to be other-than
temporary. Factors considered in evaluating potential impairment
include, but are not limited to, the current fair value as compared
to cost or amortized cost of the security, as appropriate, the
length of time the investment has been below cost or amortized cost
and by how much, our intent to sell a security and whether it is
more-likely-than-not we will be required to sell the security
before the recovery of our amortized cost basis, and specific
credit issues related to the issuer and current economic
conditions. Under the new impairment model, the credit component of
an other-than-temporary impairment of a debt security is reported
in investment gains (losses), net and the noncredit component is
reported in other comprehensive income (loss). In addition,
other-than-temporary declines in beneficial interests purchased or
retained in a securitization transaction which are classified as
available-for-sale debt securities are recognized if there has been
an adverse change in the cash flows as of the end of the reporting
period. Interest and dividends, as well as amortization of premiums
and accretion of discounts, are reported in interest and dividend
income. Amortization of premiums and accretion of discounts on debt
securities are recognized over the remaining maturity under the
interest method.
A jointly-controlled entity is a joint venture that is subject to
joint control, resulting in none of the participating parties
having unilateral control over the economic activity of the
jointly-controlled entity. The Company’s investment in a
jointly-controlled entity for which it, not being the unilateral
controlling owner of the entity, but has the ability to exercise
joint control, is accounted for using the equity method. Under the
equity method, the Company’s proportionate share of the
jointly-controlled entities’ net income or loss and
amortization of any identifiable intangibles arising from the
investment is included in “Share of income (losses) of
jointly-controlled entities”. The Company ceases to apply the
equity method when its share of the jointly-controlled
entities’ losses exceeds the carrying value of its
investment.
During the fiscal years ended March 31, 2015, 2014 and 2013,
the Company has discontinued the recognition of its share of losses
of the jointly-controlled entities because the share of losses of
the jointly-controlled entities exceeded the Company’s
interests in the jointly-controlled entities. The Company has no
further obligations to fund operations.
All other investments for which the Company does not have the
ability to exercise joint control or significant influence
(generally, when the Company has an investment of less than 20%
ownership and no representation on the investee’s board of
directors) and for which there is not a readily determinable fair
value, are accounted for using the cost method. Dividends and other
distributions of earnings from such investees, if any, are included
in income when declared. The Company periodically evaluates the
carrying value of its investments accounted for under the cost
method for impairment with any loss included in the consolidated
statement of operations and comprehensive income in the period when
it is incurred.
(h) Accounts and bills receivable
Accounts and bills receivable are presented net of an allowance for
doubtful accounts, which is an estimate of amounts that may not be
collectible. The Company does not charge interest on accounts
receivable. The allowance for doubtful accounts is estimated based
on historical experience, receivable aging, current economic trends
and specific identification of certain receivables that are at the
risk of not being paid. The Company reviews the aged analysis of
accounts and bills receivable on a regular basis. Whenever it is
clear that the amounts are deemed to be uncollectible, receivables
are written off against the allowance for doubtful accounts.
(i) Inventories
Inventories are stated at the lower of cost or market value. Cost,
calculated on the weighted average basis, comprises direct
materials and, where applicable, direct labor and an appropriate
proportion of overheads.
(j) Property, plant and equipment
Property, plant and equipment, other than construction in progress,
are stated at cost less accumulated depreciation and any
accumulated impairment losses. The cost of an item of property,
plant and equipment comprises its purchase price and any directly
attributable costs of bringing the asset to its working condition
and location for its intended use. Expenditure incurred after an
item of property, plant and equipment has been put into operation,
such as repairs and maintenance, is normally charged to the
consolidated statement of operations and comprehensive income in
the period in which it is incurred. In situations where it can be
clearly demonstrated that the expenditure has resulted in an
increase in the future economic benefits expected to be obtained
from the use of an item of property, plant and equipment, and where
the cost of the item can be measured reliably, the expenditure is
capitalized as an additional cost of that asset. Depreciation is
calculated on the straight-line basis at annual rates over the
asset’s estimated useful life.
The principal annual rates used for this purpose are as
follows:
Annual rate
Leasehold improvements Over the shorter of the lease terms or the
estimated useful life
Buildings 4.5%
Plant 4.5%
Machinery 10%
Moulds 20% - 33%
Transportation equipment 15% - 20%
Furniture, fixtures and equipment 15%
An item of property, plant and equipment is derecognized upon
disposal or when no future economic benefits are expected to arise
from the continued use of the asset. The gain or loss arising on
derecognition of an item of property, plant and equipment,
calculated as the difference between the net disposal proceeds and
the carrying amount of the item, is included in the consolidated
statement of operations and comprehensive income in the period the
item is derecognized. Machinery and equipment used in the home
appliance business has been derecognized pending sale.
(k) Construction in progress
Construction in progress represents property, plant and equipment
under construction or installation and is stated at cost less any
accumulated impairment losses, and is not depreciated. Cost
comprises the direct costs of construction, installation and other
costs in making the asset ready for its intended use. Construction
in progress is reclassified to the appropriate category of
property, plant and equipment when completed and ready for its
intended use.
(l) Impairment of long-lived assets
Long-lived assets are included in impairment evaluations when
events and circumstances exist that indicate the carrying value of
these assets may not be recoverable. In accordance with Financial
Accounting Standards Board (“FASB”) ASC 360
“Property, Plant and Equipment” the Company assesses
the recoverability of the carrying value of long-lived assets by
first grouping its long-lived assets with other assets and
liabilities at the lowest level for which identifiable cash flows
are largely independent of the cash flows of other assets and
liabilities (the asset group) and, secondly, estimating the
undiscounted future cash flows that are directly associated with
and expected to arise from the use of and eventual disposition of
such asset group. The Company estimates the undiscounted cash flows
over the remaining useful life of the primary asset within the
asset group. If the carrying value of the asset group exceeds the
estimated undiscounted cash flows, the Company records an
impairment charge to the extent the carrying value of the
long-lived asset exceeds its fair value. The Company determines
fair value through quoted market prices in active markets or, if
quotations of market prices are unavailable, through the
performance of internal analysis using a discounted cash flow
methodology or obtains external appraisals from independent
valuation firms. The undiscounted and discounted cash flow analysis
is based on a number of estimates and assumptions, including the
expected period over which the asset will be utilized, projected
future operating results of the asset group, discount rate and
long-term growth rate. Long-lived assets, excluding buildings,
associated with the home appliance business and electronic
manufacturing services (“EMS”) business and equipment
that has been leased to a third party are considered to be impaired
and accordingly have been written down to fair value less the
estimated cost of disposal. Since the Company has leased a
significant portion of the buildings previously occupied by the
home appliance business and EMS business and certain leased
equipment, the Company was able to perform an impairment analysis
based on anticipated future rental income, and as a result
determined that they were not impaired.
(m) Revenue recognition
The Company recognizes revenue in accordance with the Securities
and Exchange Commission (the “SEC”) Staff Accounting
Bulletin (“SAB”) No. 104, “Revenue
Recognition”, which requires that four basic criteria must be
met before revenue can be recognized: (1) there is persuasive
evidence that an arrangement exists; (2) delivery has occurred
or services have been rendered; (3) the fee is fixed or
determinable; and (4) collectibility is reasonably assured.
Net sales represent the gross invoiced amount, net of discounts,
and are recognized when goods are shipped and title has passed. To
the extent products are required to meet customer specifications,
such products are subject to technical and quality tests that are
designed to ensure compliance prior to shipment.
Under the Company’s standard terms and conditions, which are
mainly Free On Board shipping point, title and risk of loss are
transferred to the customer at the time the product is delivered to
the customer’s freight forwarder.
Revenue related to camera modules (“CCMs”) shipments to
certain telecommunication customers in the PRC is recognized upon
notarized acceptance of the product by the customer.
Deposits or advance payments from customers prior to delivery and
passage of title of merchandise are recorded as customer
deposits.
Revenue related to the provision of tooling income is recognized
upon the completion of such services and delivery of the related
product using the same criteria of SAB No. 104 stated
above.
In accordance with the relevant tax laws in the PRC, value-added
tax is levied on the invoiced value of sales of goods and is
payable by the purchaser. Revenue is recognized net of all
value-added tax imposed by governmental authorities and collected
from customers concurrent with revenue-producing transactions.
(n) Advertising costs
Advertising costs represent costs relating to promotional
activities intended to stimulate, directly or indirectly, a
customer’s purchase of goods, and are charged to the
consolidated statement of operations and comprehensive income as
incurred and are included in “Selling, general and
administrative expenses” (“SG&A”).
Advertising expenses were US$214,973, US$151,027 and US$223,682
from continuing operations for the fiscal years ended
March 31, 2015, 2014 and 2013, respectively. Whereas, nil,
US$5,074 and US$7,489 were from discontinued operations for the
fiscal years ended March 31, 2015, 2014 and 2013,
respectively.
(o) Design and development costs
Design and development costs primarily relate to the cost of
samples and prototypes and salaries of our engineers. The Company
expenses all design and development costs when incurred. Included
in the SG&A expenses line item in the consolidated statement of
operations and comprehensive income were design and development
costs of US$1,097,150, US$498,068, and US$366,001 from continuing
operations (from discontinued operations 2015, 2014 and 2013: nil,
US$331,424 and US$454,648) for the fiscal years ended
March 31, 2015, 2014 and 2013, respectively.
(p) Shipping and handling costs
In accordance with FASB ASC 605 “Revenue Recognition”,
shipping and handling fees billed to customers are included in net
sales in the consolidated statement of operations and comprehensive
income. Any shipping and handling costs incurred by the Company
associated with the sale of products are included in SG&A on
the face of the consolidated statement of operations and
comprehensive income. During the fiscal years ended March 31,
2015, 2014 and 2013, shipping and handling costs charged to
SG&A were US$177,792, US$202,112 and US$167,411 from continuing
operations (from discontinued operations 2015: nil, 2014: US$54,729
and 2013: US$160,384), respectively.
Any inbound freight charges, receiving, inspection, warehousing and
internal transfer costs incurred by the Company are expensed as
cost of goods sold. During the fiscal years ended March 31,
2015, 2014 and 2013, inbound freight costs charged to cost of goods
sold were US$37,591, US$31,986 and US$21,434 from continuing
operations (from discontinued operations 2015: nil, 2014: nil and
2013: nil), respectively. Other related costs are included in
manufacturing overheads.
(q) Foreign currencies
All transactions in currencies other than functional currencies
during the year are translated at the exchange rates prevailing on
the respective transaction dates. Monetary assets and liabilities
existing at the balance sheet date denominated in currencies other
than functional currencies are remeasured at the exchange rates
existing on that date. Exchange differences are recorded in the
consolidated statement of operations and comprehensive income.
The functional currency of Global-Tech is the U.S. Dollar
(“US$”). The financial statements of all subsidiaries
are translated in accordance with FASB ASC 830 “Foreign
Currency Matters”. All assets and liabilities are translated
at the rates of exchange ruling at the balance sheet date and all
income and expense items are translated at the average rates of
exchange over the year. All exchange differences arising from the
translation of subsidiaries’ financial statements are
recorded as a component of comprehensive income or loss.
(r) Income taxes
Deferred income taxes are provided using the asset and liability
method in accordance with FASB ASC 740 “ Income
taxes
FASB ASC 740 clarifies the accounting for uncertainty in income
taxes recognized in an enterprise’s financial statements, and
prescribes a recognition threshold and measurement attribute for
the financial statement recognition and measurement of a tax
position taken or expected to be taken in a tax return. It also
provides accounting guidance on de-recognition, classification,
interest and penalties, accounting in interim periods, disclosure
and transition. Interest and penalties from tax assessments, if
any, are included in income taxes in the consolidated statement of
operations and comprehensive income.
The Company records its possible interest and penalties due to any
potential underpayment of income taxes, if and when required, in
interest expense and other expenses, respectively.
The Company did not provide for deferred income taxes and foreign
withholding taxes on the undistributed earnings of foreign
subsidiaries. The Company intends to permanently reinvest foreign
subsidiaries’ earnings.
(s) Stock compensation expense
The Company adopted FASB ASC 718 “Compensation-Stock
Compensation”, and related interpretations in accounting for
its employee share-based payment transactions. Accordingly, stock
compensation cost is measured at the date of grant and estimated
using the option pricing model. Stock issued to an employee as
compensation is measured at fair value based on the grant date
quoted market price. The compensation cost for share-based awards
with service conditions is amortized over the vesting period of the
awards using the straight-line method provided that the amount of
compensation cost recognized at any date must at least equal the
portion of the grant date fair value of the award that is vested at
that date.
The Company accounts for stock options granted to a counterparty
other than an employee in accordance with FASB ASC 505
“Equity”. Fair value of the equity instruments is
recognized on the measurement date which is the earlier of
(i) a commitment for performance by the counterparty to earn
the equity instruments being reached or (ii) the
counterparty’s performance being completed.
(t) Retirement costs
Retirement cost contributions relating to defined contribution
plans are made based on a percentage of the relevant
employees’ salaries and are included in the consolidated
statement of operations and comprehensive income as they become
payable. The assumptions used in calculating the obligation for
retirement cost contributions depend on the local economic
environment, interpretations and practices in respect thereof.
(u) Operating leases
Leases where substantially all the rewards and risks of ownership
remain with the lessor are accounted for as operating leases.
Payments made under operating leases net of any incentives received
from the lessors are charged to the consolidated statement of
operations and comprehensive income on a straight-line basis over
the period of the relevant leases.
Assets leased out under operating leases are included in
“Property, plant and equipment” in the consolidated
balance sheet. They are depreciated over the expected useful lives
on a basis consistent with similar owned items of property, plant
and equipment. Rental income (net of any incentives given to
lessees) is recognized on a straight-line basis over the lease
terms.
(v) Earnings (loss) per share
Basic earnings or loss per share of common stock is computed by
dividing the net income or loss available to common shareholders
for the year by the weighted average number of shares of common
stock outstanding during the year.
Diluted earnings or loss per share of common stock reflects the
potential dilution that could occur if securities or other
contracts/arrangements to issue shares of common stock were
exercised or converted into shares of common stock. Common
equivalent shares, comprised of incremental shares of common stock
issuable upon the exercise of stock options, are included in
diluted earnings or loss per share if they have a dilutive effect
by application of the treasury stock method.
(w) Treasury stock
The Company accounts for the acquired shares of its own capital
stock (“treasury stock”) in accordance with Accounting
Research Bulletin (“ARB”) No. 43, Chapter 1B, and
Accounting Principles Board Opinion No. 6, “Status of
Accounting Research Bulletins”. The cost of the acquired
treasury stock is shown as a deduction from shareholders’
equity. Gains on sale of treasury stock not previously accounted
for as constructively reissued are credited to additional paid-in
capital while losses are charged to additional paid-in capital to
the extent that previous net gains from the sale or retirement of
the same class of stock are included therein, otherwise the loss is
charged to retained earnings/accumulated deficit.
(x) Comprehensive income (loss)
Comprehensive income (loss) is defined as the consolidated change
in equity of the Company during a period from transactions and
other events and circumstances excluding transactions resulting
from investments by owners and distributions to shareholders. Total
net comprehensive income (loss) includes net income or loss for the
year as well as additional other comprehensive income (loss). The
Company’s other comprehensive income (loss) consists of the
Company’s share of other comprehensive income of
jointly-controlled entities, unrealized gains and losses on
available-for-sale investments and foreign currency translation
adjustments, all recorded net of tax.
(y) Accruals and loss contingencies
The Company makes provision for all loss contingencies when
information available prior to the issuance of the consolidated
financial statements indicates that it is probable that an asset
has been impaired or a liability has been incurred at the date of
the consolidated financial statements and the amount of loss can be
reasonably estimated.
For provision or accruals related to litigation, social insurance,
property tax, etc, the Company makes provisions based on
information from legal counsel and the best estimation of
management. The Company assesses the potential liability to be
recorded if the contingency loss is probable and the amount of loss
can be reasonably estimated. The actual resolution of the
contingency may differ from the Company’s estimates. If the
contingency was settled for an amount greater than the estimate, a
future charge to income would result. Likewise, if the contingency
was settled for an amount that is less than our estimates, a future
credit to income would result.
(z) Segment reporting
The Company follows FASB ASC 280 “Segment Reporting”.
During fiscal 2015, the Company operated and managed its business
in two segments. The Company exited the EMS business in December
2013 and home appliance business in January 2012 and thus the home
appliance and EMS segments are presented as discontinued
operations. The accounting policies used in its segment reporting
are the same as those used in the reporting of its results in the
consolidated financial statements.
(aa) Warranty cost
The Company estimates its warranty provision for defective products
based on various factors including the likelihood of defects, an
evaluation of its quality controls, technical analysis, industry
information on comparable companies and its own experience. Based
on the above consideration, the Company has accrued for warranty
costs of US$871,000 for the year ended March 31, 2015 (2014:
US$869,734 and 2013: US$403,627). The basis and the amount of the
warranty accrual are reviewed and adjusted periodically based on
actual experience.
(ab) Government grants
Government grants are recognized when received and the stipulated
activities are achieved. Such amounts are included in other income
(expenses), net in the consolidated statement of operations and
comprehensive income.
(ac) Retained Earnings and Reserves
The Company’s retained earnings are not restricted as to the
payment of dividends except to the extent dictated by prudent
business practices. The Company believes that there are no material
restrictions, including foreign exchange controls, on the ability
of its non-PRC subsidiaries to transfer surplus funds to the
Company in the form of cash dividends, loans, advances or
purchases. With respect to the Company’s PRC subsidiaries,
there are restrictions on the payment of dividends and the
distribution of dividends from the PRC. On March 16, 2007, the
PRC promulgated the Law of the PRC on Enterprise Income Tax (the
“New Law”) by Order No. 63 of the President of the
PRC. Please refer to Note 17 for further details of the New Law.
The New Law became effective from January 1, 2008. Prior to
the enactment of the New Law, when dividends were paid by the
Company’s PRC subsidiaries, such dividends would reduce the
amount of reinvested profits and accordingly, the refund of taxes
paid might be reduced to the extent of tax applicable to profits
not reinvested. Subsequent to the enactment of the New Law, due to
the removal of any tax benefit related to reinvestment of capital
in PRC subsidiaries, the Company may not reinvest the profits made
by the PRC subsidiaries. Payment of dividends by PRC subsidiaries
to foreign investors on profits earned subsequent to
January 1, 2008 will also be subject to withholding tax under
the New Law. In addition, pursuant to the relevant PRC regulations,
a certain portion of the profits made by these subsidiaries must be
set aside for future capital investment and are not distributable,
and the registered capital of the Company’s PRC subsidiaries
are also restricted. Under applicable PRC regulations,
foreign-invested enterprises in China may pay dividends only out of
their accumulated profits, if any, determined in accordance with
the PRC accounting standards and regulations. In addition, a
foreign-invested enterprise in China is required to set aside at
least 10% of its after-tax profit based on PRC accounting standards
each year for its general reserves until the cumulative amount of
such reserves reaches 50% of its registered capital. These reserves
are not distributable as cash dividends. The board of directors of
a foreign-invested enterprise has the discretion to allocate a
portion of its after-tax profits to staff welfare and bonus funds,
which may not be distributed to equity owners except in the event
of liquidation. However, the Company believes that such
restrictions will not have a material effect on the Company’s
liquidity or cash flows.
(ad) Statutory Reserves
The PRC subsidiaries are required by the relevant laws and
regulation to transfer at least 10% of their after-tax profit
determined in accordance with the PRC accounting rules and
regulations to a statutory surplus reserve until such reserve
balance reaches 50% of their registered capital.
The Company transferred US$101,868 out of after-tax profit of its
PRC subsidiaries to the statutory reserves for the year ended
March 31, 2014. For the year ended March 31, 2015,
US$11,946 has been transferred out of the statutory reserve.
The statutory reserves can only be utilized to offset prior
years’ losses or for capitalization as paid-in capital. No
distribution of the remaining reserves shall be made other than
upon liquidation of the PRC subsidiaries.
Recent accounting pronouncements
In March 2014, the FASB issued ASU 2014-06, “Technical
Corrections and Improvements Related to Glossary Terms”. The
amendments in this Update relate to glossary terms and cover a wide
range of Topics in the Codification. These amendments are presented
in four sections: Deletion of Master Glossary Terms (Section A),
Addition of Master Glossary Term Links (Section B), Duplicate
Master Glossary Terms (Section C), and Other Technical Corrections
Related to Glossary Terms (Section D). The amendments in this
Update do not have transition guidance and will be effective upon
issuance for both public entities and nonpublic entities. The
Company is currently evaluating the new pronouncement to determine
the impact it may have on its consolidated financial
statements.
In April 2014, the FASB issued ASU 2014-08, Presentation of
Financial Statements (Topic 205) and Property, Plant, and Equipment
(Topic 360): Reporting Discontinued Operations and Disclosures of
Disposals of Components of an Entity (“ASU 2014-08”).
The amendments in ASU 2014-08 change the criteria for reporting
discontinued operations while enhancing disclosures in this area.
Under the new guidance, disposals representing a strategic shift in
operations should be presented as discontinued operations.
Additionally, the new guidance requires expanded disclosures about
discontinued operations that will provide financial statement users
with more information about the assets, liabilities, income and
expenses of discontinued operations. The amendments in ASU 2014-08
are effective prospectively for all disposals (or classifications
as held for sale) of components of an entity, and for all
businesses that, on acquisition, are classified as held for sale
that occur within annual periods beginning on or after
December 15, 2014, and interim periods within those years. The
Company is currently evaluating the new pronouncement to determine
the impact it may have on its consolidated financial
statements.
In May 2014, the FASB issued ASU 2014-09, Revenue from Contracts
with Customers (Topic 606) (“ASU 2014-09”). This ASU is
a comprehensive new revenue recognition model that requires a
company to recognize revenue to depict 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. The amendments in this ASU
are effective for annual reporting periods beginning after
December 15, 2016, including interim periods within that
reporting period, with early application not per |
