Document_and_Entity_Informatio
Document and Entity Information (USD $) | 6 Months Ended | ||
Jun. 30, 2014 | Aug. 14, 2014 | Jun. 30, 2013 | |
Document and Entity Information: | ' | ' | ' |
Entity Registrant Name | 'ARVANA INC | ' | ' |
Document Type | '10-Q | ' | ' |
Document Period End Date | 30-Jun-14 | ' | ' |
Amendment Flag | 'false | ' | ' |
Entity Central Index Key | '0001113313 | ' | ' |
Current Fiscal Year End Date | '--12-31 | ' | ' |
Entity Common Stock, Shares Outstanding | ' | 885,130 | ' |
Entity Public Float | ' | ' | $0 |
Entity Filer Category | 'Smaller Reporting Company | ' | ' |
Entity Current Reporting Status | 'Yes | ' | ' |
Entity Voluntary Filers | 'No | ' | ' |
Entity Well-known Seasoned Issuer | 'No | ' | ' |
Document Fiscal Year Focus | '2014 | ' | ' |
Document Fiscal Period Focus | 'Q2 | ' | ' |
ARVANA_INC_AND_SUBSIDIARIES_CO
ARVANA INC AND SUBSIDIARIES CONSOLIDATED BALANCE SHEETS PERIOD JUNE 30TH 2014 AND DECEMBER 31ST 2013 (USD $) | Jun. 30, 2014 | Dec. 31, 2013 |
ASSETS | ' | ' |
Cash | $1,640 | $321 |
Total assets | 1,640 | 321 |
LIABILITIES AND STOCKHOLDERS' DEFICIENCY | ' | ' |
Accounts payable and accrued liabilities | 1,076,064 | 1,056,941 |
Loans payable stockholders (Note 3) | 683,692 | 666,511 |
Loans payable related party (Note 3) | 34,867 | 34,950 |
Loans payable (Note 3) | 144,372 | 144,402 |
Amounts due to related parties (Note 3and 6) | 493,716 | 493,534 |
Total current liabilities | 2,432,711 | 2,396,338 |
Stockholders' deficiency | ' | ' |
Common stock, $0.001 par value 5,000,000 authorized, 885,130 shares issued and outstanding at December 31, 2011, respectively (Note 4) | 885 | 885 |
Additional paid-in capital | 21,166,619 | 21,166,619 |
Deficit | -22,705,422 | -22,705,422 |
Deficit accumulated during the development stage | -889,817 | -854,763 |
Total Stockholders Deficit Before Treasury Stock | -2,427,735 | -2,392,681 |
Less: Treasury stock - 2,085 at December 31, 2012 and 2011, respectively | -3,336 | -3,336 |
Total stockholders' deficiency | -2,431,071 | -2,396,017 |
Total liabilities and stockholders' deficit | $1,640 | $321 |
ARVANA_INC_CONSOLIDATED_STATEM
ARVANA INC CONSOLIDATED STATEMENTS OF OPERATIONS THREE AND SIX MONTHS ENDED JUNE 30, 2014 AND 2013 (USD $) | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2014 | Jun. 30, 2013 | Jun. 30, 2014 | Jun. 30, 2013 | |
Operating expenses | ' | ' | ' | ' |
General and administrative | $10,929 | $20,960 | $16,821 | $44,904 |
Total operating expenses | 10,929 | 20,960 | 16,821 | 44,904 |
Loss from operations | -10,929 | -20,960 | -16,821 | -44,904 |
Interest expense | -12,826 | -12,109 | -25,468 | -24,167 |
Foreign exchange gain | -20,282 | 20,937 | 7,235 | 51,390 |
Net loss and comprehensive loss for the year | ($44,037) | ($12,132) | ($35,054) | ($17,681) |
Per common share information - basic and diluted: | ' | ' | ' | ' |
Weighted average shares outstanding (in shares) | 885,130 | 885,130 | 885,130 | 885,130 |
Net loss per common share - basic and diluted (in dollars per share) | ($0.05) | ($0.01) | ($0.04) | ($0.02) |
ARVANA_INC_CONSOLIDATED_STATEM1
ARVANA INC CONSOLIDATED STATEMENTS OF CASH FLOWS SIX MONTHS ENDED JUNE 30, 2014 AND 2013 (USD $) | 6 Months Ended | |
Jun. 30, 2014 | Jun. 30, 2013 | |
Statement Of Cash Flows | ' | ' |
Net Income (Loss), Including Portion Attributable to Noncontrolling Interest | ($35,054) | ($17,681) |
Items not involving cash: | ' | ' |
Unrealized foreign exchange | -4,898 | -50,464 |
Changes in non-cash working capital: | ' | ' |
Accounts payable and accrued liabilities | 20,825 | 29,456 |
Amounts due to related parties | 1,046 | 34,471 |
Net cash used in operations | -18,081 | -4,218 |
Cash flows from financing activities | ' | ' |
Proceeds of loans payable stockholders | 19,400 | 4,082 |
Net cash provided by financing activities | 19,400 | 4,082 |
Increase (decrease) in cash | 1,319 | -136 |
Cash beginning of year | 321 | 1,254 |
Cash end of Year | $1,640 | $1,118 |
Note_1_Nature_of_Business_and_
Note 1: Nature of Business and Ability To Continue As A Going Concern | 6 Months Ended |
Jun. 30, 2014 | |
Notes | ' |
Note 1: Nature of Business and Ability To Continue As A Going Concern | ' |
1. Nature of Business and Ability to Continue as a Going Concern | |
Arvana, Inc. (“our”, “we”, ”us” and the “Company”) was incorporated under the laws of the State of Nevada as Turinco, Inc. on September 16, 1977, with authorized common stock of 2,500 shares with a par value of $0.25. On October 16, 1998, the authorized capital stock was increased to 100,000,000 common shares with a par value of $0.001 and a forward common stock split of eight shares for each outstanding share. In 2005, we completed another forward common stock split of nine shares for each outstanding share. On July 24, 2006, the shareholders approved a change of the Company’s name from Turinco, Inc. to Arvana Inc. On September 30, 2010, the authorized capital stock was decreased to 5,000,000 common shares with a par value of $0.001 and effected a reverse split of one share for every twenty shares outstanding. | |
These condensed consolidated financial statements for the six month period ended June 30, 2014 include the accounts of the Company and its subsidiary Arvana Networks Inc. (including its wholly-owned subsidiaries, Arvana Participaç es S.A. (“Arvana Par”) and Arvana Comunicações do Brasil S. A. (“Arvana Com”)). The Company has ceased all operations in its subsidiary companies, and has written-off or disposed of all assets in the subsidiary companies, consequently they are now all considered to be inactive subsidiaries. | |
Our reporting currency and functional currency is the United States dollar (“US Dollar”) and the accompanying condensed consolidated financial statements have been expressed in US Dollars. | |
These condensed consolidated financial statements have been prepared on a going concern basis, which assumes the realization of assets and settlement of liabilities in the normal course of business. For the six month period ended June 30, 2014, the Company incurred net loss from operations of $35,054. At June 30, 2014, the Company had a working capital deficiency of $2,431,071. These conditions raise substantial doubt about the Company’s ability to continue as a going concern. | |
Accordingly, the Company will require continued financial support from its shareholders and creditors until it is able to generate sufficient cash flow from operations on a sustained basis. There is substantial doubt that the Company will be successful at achieving these results. Failure to obtain the ongoing support of its shareholders and creditors may make the going concern basis of accounting inappropriate, in which case the Company’s assets and liabilities would need to be recognized at their liquidation values. These financial statements do not include any adjustments relating to the recoverability and classification of recorded asset amounts and classification of liabilities that might arise from this uncertainty. |
2_Summary_of_Significant_Accou
2. Summary of Significant Accounting Policies | 6 Months Ended | ||||||||||||
Jun. 30, 2014 | |||||||||||||
Notes | ' | ||||||||||||
2. Summary of Significant Accounting Policies | ' | ||||||||||||
2. Summary of Significant Accounting Policies | |||||||||||||
Basis of presentation | |||||||||||||
The Company is in the process of evaluating business opportunities and has minimal operating levels. The Company’s fiscal year end is December 31. The accompanying condensed interim consolidated financial statements of Arvana, Inc. for the six months ended June 30, 2014 and 2013, have been prepared in accordance with accounting principles generally accepted in the United States (“US GAAP”) for financial information with the instructions to Form 10-Q and Regulation S-X. Results are not necessarily indicative of results which may be achieved in the future. Although they are unaudited, in the opinion of management, they include all adjustments, consisting only of normal recurring items, necessary for a fair presentation. Results are not necessarily indicative of results which may be achieved in the future. The condensed consolidated interim financial statements and notes appearing in this report should be read in conjunction with our consolidated audited financial statements and related notes thereto, together with Management’s Discussion and Analysis of Financial Condition and Results of Operations, contained in our Annual Report on Form 10-K for the fiscal year ended December 31, 2013, as filed with the Securities and Exchange Commission (the “SEC”) on March 31, 2014. | |||||||||||||
Use of Estimates | |||||||||||||
The preparation of consolidated financial statements in conformity with US GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates. These estimates include the recognition of deferred tax assets based on the change in unrecognized deductible temporary tax differences. | |||||||||||||
Financial instruments | |||||||||||||
The Company uses the following methods and assumptions to estimate the fair value of each class of financial instruments for which it is practicable to estimate such values: | |||||||||||||
Cash - the carrying amount approximates fair value because the amounts consist of cash held at a bank. | |||||||||||||
Accounts payable and accrued liabilities and loans payable - the carrying amount approximates fair value due to the short-term nature of the obligations. | |||||||||||||
The estimated fair values of the Company's financial instruments as of June 30, 2014 and December 31, 2013 follows: | |||||||||||||
June 30, | December 31, | ||||||||||||
2014 | 2013 | ||||||||||||
Carrying | Fair | Carrying | Fair | ||||||||||
Amount | Value | Amount | Value | ||||||||||
Cash | $1,640 | $1,640 | $321 | $321 | |||||||||
Accounts payable and accrued liabilities | 1,076,064 | 1,076,064 | 1,056,941 | 1,056,941 | |||||||||
Loans payable to stockholders | 683,692 | 683,692 | 666,511 | 666,511 | |||||||||
Loans payable to related party | 34,867 | 34,867 | 34,950 | 34,950 | |||||||||
Loans payable | 144,372 | 144,372 | 144,402 | 144,402 | |||||||||
Amounts due to related parties | 493,716 | 493,716 | 493,534 | 493,534 | |||||||||
The following table presents information about the assets that are measured at fair value on a recurring basis as of June 30, 2014, and indicates the fair value hierarchy of the valuation techniques the Company utilized to determine such fair value. In general, fair values determined by Level 1 inputs utilize quoted prices (unadjusted) in active markets for identical assets. Fair values determined by Level 2 inputs utilize data points that are observable such as quoted prices, interest rates and yield curves. Fair values determined by Level 3 inputs are unobservable data points for the asset or liability, and included situations where there is little, if any, market activity for the asset: | |||||||||||||
June 30, | Quoted Prices in Active Markets (Level 1) | Significant Other Observable Inputs (Level 2) | Significant Unobservable Inputs (Level 3) | ||||||||||
2014 | |||||||||||||
Assets: | |||||||||||||
Cash | $ | 1,640 | $ | 1,640 | $ | - | $ | - | |||||
The fair value of cash is determined through market, observable and corroborated sources. | |||||||||||||
Recent accounting pronouncements | |||||||||||||
In June 2014, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (ASU) No. 2014-10, “Development Stage Entities (Topic 915): Elimination of Certain Financial Reporting Requirements, Including an Amendment to Variable Interest Entities Guidance in Topic 810, Consolidation”. This ASU does the following, among other things: a) eliminates the requirement to present inception-to-date information on the statements of income, cash flows, and shareholders' equity, b) eliminates the need to label the financial statements as those of a development stage entity, c) eliminates the need to disclose a description of the development stage activities in which the entity is engaged, and d) amends FASB ASC 275, “Risks and Uncertainties”, to clarify that information on risks and uncertainties for entities that have not commenced planned principal operations is required. The amendments in ASU No. 2014-10 related to the elimination of Topic 915 disclosures and the additional disclosure for Topic 275 are effective for public companies for annual and interim reporting periods beginning after December 15, 2014. Early adoption is permitted. The Company has evaluated this ASU and early adopted beginning with the period ended June 30, 2014. | |||||||||||||
In May 2014, the FASB released ASU 2014-9 - Accounting Standards Update 2014-9, Topic 606: Revenue from Contracts with Customers that outlines a single comprehensive model for entities to use in accounting for revenue arising from contracts with customers and supersedes most current revenue recognition guidance, including industry-specific guidance. The guidance is based on the principle that an entity should recognize revenue to depict the transfer of 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 guidance 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 fulfill a contract. Entities have the option of using either a full retrospective or a modified retrospective approach for the adoption of the new standard. This guidance becomes effective for annual reporting periods beginning after December 15, 2016 and early adoption is not permitted. The Company is currently assessing the impact that this standard will have on its financial statements. | |||||||||||||
3_Amounts_Due_To_Related_Parti
3. Amounts Due To Related Parties and Loans Payable To Stockholders | 6 Months Ended |
Jun. 30, 2014 | |
Notes | ' |
3. Amounts Due To Related Parties and Loans Payable To Stockholders | ' |
3. Amounts Due to Related Parties and Loans Payable to Stockholders | |
From February, 2007, until June 30, 2014, the Company received a number of loans from stockholders, related parties and unrelated third parties. As of June 30, 2014, the Company had received loans of $683,692 (Euro 225,000; CAD 72,300; $307,907) (December 31, 2013 - $666,511: Euro 225,000; CAD 72,300; $288,507) from stockholders, loans of $34,867 (CAD 27,600; $9,000) (December 31, 2013 – $34,950: CAD 27,600; $9,000) from a related party and loans of $144,372 (CAD 10,000; $ 135,000) (December 31, 2013 – $ 144,402: CAD 10,000; $135,000) from unrelated third parties. All of the loans bear interest at 6% per annum. The loans were made in 3 different currencies, Euros, Canadian Dollars and US Dollars. All amounts reflected on these condensed consolidated financial statements are expressed in US Dollars. Repayment of the loans is due on closing of any future financing arrangement by the Company. The balance of accrued interest of $292,897 and $268,271 is included in accounts payable and accrued liabilities at June 30, 2014, and December 31, 2013, respectively. Interest expense recognized on these loans was $12,826 and $25,468 for the three and six months ended June 30, 2014, respectively, compared to $12,109 and $24,167 for the three and six months ended June 30, 2013, respectively. | |
At June 30, 2014, and December 31, 2013, the Company had amounts due to related parties of $493,716 and $493,534, respectively. This amount includes $136,100 at June 30, 2014, and December 31, 2013, payable to two former directors and a current director for services rendered during 2007. This amount is to be paid part in cash and part in stock at a future date with the number of common shares determined by the fair value of the shares on the settlement date. The amounts owing bear no interest, are unsecured, and have no fixed terms of repayment. |
4_Common_Stock
4. Common Stock | 6 Months Ended |
Jun. 30, 2014 | |
Notes | ' |
4. Common Stock | ' |
4. Common stock | |
We have a stock option plan in place under which we are authorized to grant options to executive officers and directors, employees and consultants enabling them to acquire up to 10% of our issued and outstanding common stock. Under the plan, the exercise price of each option equals the market price of our stock as calculated on the date of grant. The options can be granted for a maximum term of 10 years. Vesting terms are determined at the time of grant. | |
At June 30, 2014 and December 31, 2013, there were no warrants outstanding. | |
At June 30, 2014 and December 31, 2013, there were no stock options outstanding. No options were granted, exercised or expired during the six months ended June 30, 2014 or the year ended December 31, 2013. |
5_Segmented_Information
5. Segmented Information | 6 Months Ended |
Jun. 30, 2014 | |
Notes | ' |
5. Segmented Information | ' |
5. Segmented Information | |
The Company has no reportable segments. |
6_Related_Party_Transactions
6. Related Party Transactions | 6 Months Ended |
Jun. 30, 2014 | |
Notes | ' |
6. Related Party Transactions | ' |
6. Related Party Transactions | |
Other than amounts payable to related parties as disclosed below and in Note 3, the Company also incurred consulting fees of $4,138 paid to a company controlled by our chief executive officer during the period ended June 30, 2014 compared to consulting fees of $2,826 incurred during the period ended June 30, 2013. | |
Our former chief executive officer and former director had entered into a consulting arrangement on a month to month basis that provided for a monthly fee of CAD 5,000. These amounts have been accrued and are currently unpaid. This consulting arrangement ended on May 24, 2013. As of June 30, 2014 our former chief executive officer was owed $78,453 (CAD 83,710) for services rendered as an officer, compared to $78,704 (CAD 83,710) as at December 31, 2013. | |
Our former chief financial officer and former director had entered into a consulting agreement on a month to month basis that provides for a monthly fee of $2,000. These amounts have been accrued and are currently unpaid. This consulting arrangement ended on June 14, 2013. As of June 30, 2014 and December 31, 2013 our former chief financial officer was owed $58,870 for services rendered as an officer. | |
Our former chief executive officer and former director entered into a debt assignment agreement effective January 1, 2012, with a corporation with a former director in common and thereby assigned $190,026 (CAD 202,759) of unpaid amounts payable. | |
Our former chief executive officer and former director entered into a debt assignment agreement effective January 1, 2012, with an unrelated third party and thereby assigned $53,357 of unpaid amounts payable and $100,000 of unpaid loans. | |
Our former chief executive officer and former director is owed $199,935 for unsecured non-interest bearing amounts due on demand loaned to the Company as of June 30, 2014, compared to $199,481 as of December 31, 2013. | |
Our former chief executive officer and former director is owed $34,867 for unsecured amounts bearing 6% interest due on demand loaned to the Company as of June 30, 2014, compared to $34,950 as of December 31, 2013. | |
Our other former officers are owed a total of $98,812 for their prior services rendered as officers as at June 30, 2014, compared to $99,083 as of December 31, 2013. | |
A director of the Company is owed $60,000 as of June 30, 2014 and December 31, 2013 for services rendered as a director during 2007. Two former directors of the Company are owed $76,100 as of June 30, 2014 and December 31, 2013 for services rendered as directors during 2007. |
7_Subsequent_Events
7. Subsequent Events | 6 Months Ended |
Jun. 30, 2014 | |
Notes | ' |
7. Subsequent Events | ' |
7. Subsequent Events | |
The Company evaluated its June 30, 2014, financial statements for subsequent events through the date the financial statements were issued. The Company is not aware of any subsequent events which would require recognition or disclosure in the financial statements. |
2_Summary_of_Significant_Accou1
2. Summary of Significant Accounting Policies: Basis of Presentation (Policies) | 6 Months Ended |
Jun. 30, 2014 | |
Policies | ' |
Basis of Presentation | ' |
Basis of presentation | |
The Company is in the process of evaluating business opportunities and has minimal operating levels. The Company’s fiscal year end is December 31. The accompanying condensed interim consolidated financial statements of Arvana, Inc. for the six months ended June 30, 2014 and 2013, have been prepared in accordance with accounting principles generally accepted in the United States (“US GAAP”) for financial information with the instructions to Form 10-Q and Regulation S-X. Results are not necessarily indicative of results which may be achieved in the future. Although they are unaudited, in the opinion of management, they include all adjustments, consisting only of normal recurring items, necessary for a fair presentation. Results are not necessarily indicative of results which may be achieved in the future. The condensed consolidated interim financial statements and notes appearing in this report should be read in conjunction with our consolidated audited financial statements and related notes thereto, together with Management’s Discussion and Analysis of Financial Condition and Results of Operations, contained in our Annual Report on Form 10-K for the fiscal year ended December 31, 2013, as filed with the Securities and Exchange Commission (the “SEC”) on March 31, 2014. |
2_Summary_of_Significant_Accou2
2. Summary of Significant Accounting Policies: Use of Estimates (Policies) | 6 Months Ended |
Jun. 30, 2014 | |
Policies | ' |
Use of Estimates | ' |
Use of Estimates | |
The preparation of consolidated financial statements in conformity with US GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates. These estimates include the recognition of deferred tax assets based on the change in unrecognized deductible temporary tax differences. |
2_Summary_of_Significant_Accou3
2. Summary of Significant Accounting Policies: Financial Instruments (Policies) | 6 Months Ended | ||||||||||||
Jun. 30, 2014 | |||||||||||||
Policies | ' | ||||||||||||
Financial Instruments | ' | ||||||||||||
Financial instruments | |||||||||||||
The Company uses the following methods and assumptions to estimate the fair value of each class of financial instruments for which it is practicable to estimate such values: | |||||||||||||
Cash - the carrying amount approximates fair value because the amounts consist of cash held at a bank. | |||||||||||||
Accounts payable and accrued liabilities and loans payable - the carrying amount approximates fair value due to the short-term nature of the obligations. | |||||||||||||
The estimated fair values of the Company's financial instruments as of June 30, 2014 and December 31, 2013 follows: | |||||||||||||
June 30, | December 31, | ||||||||||||
2014 | 2013 | ||||||||||||
Carrying | Fair | Carrying | Fair | ||||||||||
Amount | Value | Amount | Value | ||||||||||
Cash | $1,640 | $1,640 | $321 | $321 | |||||||||
Accounts payable and accrued liabilities | 1,076,064 | 1,076,064 | 1,056,941 | 1,056,941 | |||||||||
Loans payable to stockholders | 683,692 | 683,692 | 666,511 | 666,511 | |||||||||
Loans payable to related party | 34,867 | 34,867 | 34,950 | 34,950 | |||||||||
Loans payable | 144,372 | 144,372 | 144,402 | 144,402 | |||||||||
Amounts due to related parties | 493,716 | 493,716 | 493,534 | 493,534 | |||||||||
The following table presents information about the assets that are measured at fair value on a recurring basis as of June 30, 2014, and indicates the fair value hierarchy of the valuation techniques the Company utilized to determine such fair value. In general, fair values determined by Level 1 inputs utilize quoted prices (unadjusted) in active markets for identical assets. Fair values determined by Level 2 inputs utilize data points that are observable such as quoted prices, interest rates and yield curves. Fair values determined by Level 3 inputs are unobservable data points for the asset or liability, and included situations where there is little, if any, market activity for the asset: | |||||||||||||
June 30, | Quoted Prices in Active Markets (Level 1) | Significant Other Observable Inputs (Level 2) | Significant Unobservable Inputs (Level 3) | ||||||||||
2014 | |||||||||||||
Assets: | |||||||||||||
Cash | $ | 1,640 | $ | 1,640 | $ | - | $ | - | |||||
The fair value of cash is determined through market, observable and corroborated sources. | |||||||||||||
2_Summary_of_Significant_Accou4
2. Summary of Significant Accounting Policies: Recent Accounting Pronouncements (Policies) | 6 Months Ended |
Jun. 30, 2014 | |
Policies | ' |
Recent Accounting Pronouncements | ' |
Recent accounting pronouncements | |
In June 2014, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (ASU) No. 2014-10, “Development Stage Entities (Topic 915): Elimination of Certain Financial Reporting Requirements, Including an Amendment to Variable Interest Entities Guidance in Topic 810, Consolidation”. This ASU does the following, among other things: a) eliminates the requirement to present inception-to-date information on the statements of income, cash flows, and shareholders' equity, b) eliminates the need to label the financial statements as those of a development stage entity, c) eliminates the need to disclose a description of the development stage activities in which the entity is engaged, and d) amends FASB ASC 275, “Risks and Uncertainties”, to clarify that information on risks and uncertainties for entities that have not commenced planned principal operations is required. The amendments in ASU No. 2014-10 related to the elimination of Topic 915 disclosures and the additional disclosure for Topic 275 are effective for public companies for annual and interim reporting periods beginning after December 15, 2014. Early adoption is permitted. The Company has evaluated this ASU and early adopted beginning with the period ended June 30, 2014. | |
In May 2014, the FASB released ASU 2014-9 - Accounting Standards Update 2014-9, Topic 606: Revenue from Contracts with Customers that outlines a single comprehensive model for entities to use in accounting for revenue arising from contracts with customers and supersedes most current revenue recognition guidance, including industry-specific guidance. The guidance is based on the principle that an entity should recognize revenue to depict the transfer of 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 guidance 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 fulfill a contract. Entities have the option of using either a full retrospective or a modified retrospective approach for the adoption of the new standard. This guidance becomes effective for annual reporting periods beginning after December 15, 2016 and early adoption is not permitted. The Company is currently assessing the impact that this standard will have on its financial statements. | |