| SIGNIFICANT ACCOUNTING POLICIES | NOTE
2:- SIGNIFICANT
ACCOUNTING POLICIES
a. Basis
of presentation: The
consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the U.S. ("U.S.
GAAP").
b. Use
of estimates: The
preparation of the financial statements and related disclosures in conformity with U.S. GAAP requires the Company to make
judgments, assumptions, and estimates that affect the amounts reported in the consolidated financial statements and the accompanying
notes. The Company bases its estimates and assumptions on current facts, historical experience, and various other factors that
it believes are reasonable under the circumstances, to determine the carrying values of assets and liabilities that are not readily
apparent from other sources. To the extent there are material differences between the Company's estimates and the actual results,
the Company's future consolidated results of operation may be affected.
c. Financial
statements in U.S. dollars: A majority
of the revenues of the Company and certain of its subsidiaries are generated in U.S. dollars ("dollars"). In addition,
a substantial portion of the Company's and certain of its subsidiaries' costs is incurred in dollars. Since management believes
that the dollar is the currency of the primary economic environment in which the Company and its subsidiaries operate and considers
the non-U.S. subsidiaries to be a direct, integral extension of the parent company's operations, the dollar is its functional
and reporting currency. Accordingly, amounts in currencies other than U.S dollars have been re-measured in accordance with ASC
topic 830, "Foreign Currency Matters" ("ASC 830") as follows: Monetary
balances - at the exchange rate in effect on the balance sheet date. Consolidated statements of operations items - average exchange
rates prevailing during the year. All
exchange gains and losses from the re-measurement mentioned above are reflected in the statement of operations in financial expenses,
net. The
financial statements of the Company's Brazilian subsidiaries, whose functional currency is not the dollar, have been re-measured
and translated into dollars. All amounts on the balance sheets have been translated into the dollar using the exchange rates in
effect on the relevant balance sheet dates. All amounts in the statements of operations have been translated into the dollar using
the average exchange rate for the relevant periods. The resulting translation adjustments are reported as a component of accumulated
other comprehensive income (loss) in shareholders' equity.
d. Principles
of consolidation: The
consolidated financial statements include the accounts of the Company and its subsidiaries ("the Group"). Intercompany
balances and transactions including profits from intercompany sales not yet realized outside the Group, have been eliminated upon
consolidation.
e. Cash
equivalents: Cash
equivalents include short-term, highly liquid investments that are readily convertible to cash with original maturities of three
months or less.
f. Short-term
bank deposits: Short-term
bank deposits are deposits with maturities of more than three months and up to one year. The short-term bank deposits are in EURO
and U.S. dollars and bear interest at an average rate of 0% of December 31, 2014. The short-term bank deposits are presented at
their cost, including accrued interest. As
of December 31, 2014, the Company had short-term bank deposits in the amount of $413. As of December 31, 2015, the Company had
no short-term bank deposits.
g. Inventories: Inventories
are stated at the lower of cost or market value . Inventory
includes costs of products delivered to customers and not recognized as cost of sales, where revenues in the related arrangements
were not recognized. Cost
is determined for all types of inventory using the moving average cost method plus indirect costs.
h. Property
and equipment: Property
and equipment are stated at cost, net of accumulated depreciation. Depreciation is calculated by the straight-line method over
the estimated useful lives of the assets, at the following annual rates:
%
Computers,
manufacturing and peripheral equipment 6
– 33
Enterprise
Resource Planning systems ("ERP") 10
Office
furniture and equipment Mainly
15
Leasehold
improvements Over
the shorter of the term of the lease or useful life of the asset
i. Impairment
of long-lived assets: The
Company's and its subsidiaries' long-lived assets are reviewed for impairment in accordance with ASC topic 360," Property
Plant and Equipment", ("ASC 360"), whenever events or changes in circumstances indicate that the carrying amount of
an asset may not be recoverable. Recoverability of assets to be held and used is measured by a comparison of the carrying amount
of an asset to the future undiscounted cash flows expected to be generated by the asset. If an asset is considered to be impaired,
the impairment to be recognized is measured by the amount by which the carrying amount of the asset exceeds its fair value. During
2013 and 2015, no impairment losses have been recognized. During 2014 the Company recognized impairment expenses in the amount
of $ 2,367.
j. Income
taxes: The
Company and its subsidiaries account for income taxes in accordance with ASC topic 740, "Income Taxes", ("ASC 740").
This Statement prescribes the use of the liability method whereby deferred tax asset and liability account balances are determined
based on differences between the financial reporting and tax bases of assets and liabilities and for carry forward losses deferred
taxes are measured using the enacted tax rates and laws that will be in effect when the differences are expected to reverse. The
Company and its subsidiaries provide a valuation allowance, if necessary, to reduce deferred tax assets to their estimated realizable
value if it is more likely than not that some portion or all of the deferred tax asset will not be realized. For more information
see note 15c. The
Company adopted ASC topic 740-10, "Income Taxes", ("ASC 740-10"). ASC 740-10 contains a two-step approach to recognizing
and measuring uncertain tax positions accounted for in accordance with ASC 740. The first step is to evaluate the tax position
taken or expected to be taken in a tax return by determining if the weight of available evidence indicates that it is more likely
than not that, on an evaluation of the technical merits, the tax position will be sustained on audit, including resolution of
any related appeals or litigation processes. The second step is to measure the tax benefit as the largest amount that is more
than 50% likely to be realized upon ultimate settlement. The Company elected to classify interest expenses and penalties recognized
in the financial statements as income taxes. For more information see note 15g.
k. Goodwill
and other intangible assets: Goodwill
and certain other purchased intangible assets have been recorded in the Company's financial statements as a result of acquisitions.
Goodwill represents excess of the costs over the net tangible and intangible assets acquired of businesses acquired under ASC
topic 350, "Intangible - Goodwill and Other", ("ASC 350") according to which goodwill is not amortized. According
to ASC 350, goodwill impairment testing is a two-step process. The first step involves comparing the fair value of a company's
reporting units to their carrying amount. The Company elects to perform an annual impairment test of goodwill as of October 1
of each year, or more frequently if impairment indicators are present, (As of December 31, 2014 and 2015 the Company operates
as one reporting unit). If the fair value of the reporting unit is determined to be greater than its carrying amount, there is
no impairment. If the reporting unit's carrying amount is determined to be greater than the fair value, the second step must be
completed to measure the amount of impairment, if any. Step two calculates the implied fair value of goodwill by deducting the
fair value of all tangible and intangible assets, excluding goodwill, of the reporting unit from the fair value of the reporting
unit as determined in step one. The implied fair value of the goodwill in this step is compared to the carrying value of goodwill.
If the implied fair value of the goodwill is less than the carrying value of the goodwill, an impairment loss equivalent to the
difference is recorded. Intangible
assets that are considered to have definite useful life are amortized using the straight-line basis over their estimated useful
lives, 7 years for Technology and Customer relations. The carrying amount of these assets is reviewed whenever events or changes
in circumstances indicate that the carrying value of an asset may not be recoverable. Recoverability of these assets is measured
by comparison of the carrying amount of the asset to the future undiscounted cash flows the asset is expected to generate. If
the asset is considered to be impaired, the amount of any impairment is measured as the difference between the carrying value
and the fair value of the impaired asset. During
2014, the Company identified indicators of goodwill impairment and accordingly performed the two-step impairment which resulted
in recording an impairment charge of its goodwill (see note 8). For
the year ended December 31, 2013 and 2015, no impairment losses have been recognized.
l. Revenue
recognition: The
Company and its subsidiaries generate revenues from selling products to end users, distributors, system integrators and original
equipment manufacturers ("OEM"). Revenues
from product sales are recognized in accordance with ASC topic 605-10, "Revenue recognition" and with ASC 605-25 "Multiple-Element
Arrangements", ("ASC 605"), when delivery has occurred, persuasive evidence of an arrangement exists, the vendor's
fee is fixed or determinable, no future obligation exists and collectability is probable. When
required, the Company complies with ASU 605-25, "Multiple-Deliverable Revenue Arrangements". This standard changes the
requirements for establishing separate units of accounting in a multiple element arrangement by elimination of the residual method
and requires the allocation of arrangement consideration to each deliverable to be based on using the relative selling price method. Pursuant
to the guidance of ASU 605-25, when a sales arrangement contains multiple elements, such as equipment and services, the Company
allocates revenues to each element based on a selling price hierarchy. The
selling price for a deliverable is based on its vendor specific objective evidence (''VSOE'') if available, third party evidence
(''TPE'') if VSOE is not available, or estimated selling price (''ESP'') if neither VSOE nor TPE is available. In multiple element
arrangements, revenues are allocated to each separate unit of accounting for each of the deliverables based on the aforementioned
selling price hierarchy. The
Company considers the sale of equipment and its installation to be two separate units of accounting in the arrangement in which
the installation is not essential to the functionality of the equipment, the equipment has value to the customer on a standalone
basis and whenever the arrangement does not include a general right of return relative to the delivered item or delivery or performance
of the undelivered item is considered probable and substantially in the control of the Company. In such arrangement, revenues
from the sale of equipment are recognized upon delivery, if all other revenue recognition criteria are met and the installation
revenues are deferred to the period in which such installation occurs (but not less than the amount contingent upon completion
of installation, if any) using relative selling prices of each of the deliverables based on the aforementioned selling price hierarchy. The
Company determines the selling price in its multiple-element arrangements by reviewing historical transactions, and considering
internal factors including, but not limited to, pricing practices including discounting, margin objectives, and competition. The
determination of estimated selling price ("ESP") is made through consultation with management, taking into consideration
the pricing model and strategy. When
sale arrangements include a customer acceptance provision, revenue is recognized when the Company has demonstrated that the criteria
specified in the acceptance provision have been satisfied or as the acceptance provision has lapsed and deemed to be attained. To
assess the probability of collection for revenue recognition purposes, the Company analyzes historical collection experience,
current economic trends and the financial position of its customers. On the basis of these criterions, the Company concludes whether
revenue recognition should be deferred and recognized on a cash basis. When
applicable, the Company records a provision for estimated sale returns, stock rotation and credits granted to customers on products
in the same period the related revenues are recorded in accordance with ASC 605. These estimates are based on historical sales
returns, stock rotations and other known factors. Deferred
revenue includes unearned amounts received in its arrangements, and amounts received from customers but not recognized as revenues
due to the fact that these transactions did not meet the revenue recognition criteria.
m. Research
and development expenses, net: Research
and development expenses, net are charged to the statement of operations as incurred.
n. Warranty
costs: The
Company generally offers a standard limited warranty, including parts and labor for an average period of 1-3 years for its products.
The Company estimates the costs that may be incurred under its basic limited warranty and records a liability in the amount of
such costs at the time product revenue is recognized. Factors that affect the Company's warranty liability include the number
of installed units, historical and anticipated rates of warranty claims, and cost per claim. The Company periodically assesses
the adequacy of its recorded warranty liability and adjusts the amounts as necessary. The Company recorded income from decrease
of warranty provision for the years ended December 31, 2013, 2014 and 2015 in the amount of $ 1,816, $ 133 and $ 139,
respectively. As of December 31, 2014 and 2015, the warranty provision was $ 2,851 and $ 2,712, respectively.
o. Derivative
instruments: The
Company has instituted a foreign currency cash flow hedging program using foreign currency forward contracts ("derivative
instruments") in order to hedge the exposure to variability in expected future cash flows resulting from changes in related
foreign currency exchange rates. These transactions are designated as cash flow hedges, as defined under ASC topic 815, "Derivatives
and Hedging". ASC
815 requires companies to recognize all of their derivative instruments as either assets or liabilities in the financial statements
at fair value. The Company measured the fair value of the contracts in accordance with ASC topic 820, "Fair value Measurement
and Disclosures" at Level 2 (see also note 2v). The accounting for changes in the fair value (i.e., gains or losses) of a
derivative instrument depends on whether it has been designated and qualifies as part of a hedging relationship and further, on
the type of hedging relationship. For
those derivative instruments that are designated and qualify as hedging instruments, a company must designate the hedging instrument,
based upon the exposure being hedged, as a fair value hedge, cash flow hedge or a hedge of a net investment in a foreign operation. For
derivative instruments that are designated and qualify as a cash flow hedge (i.e., hedging the exposure to variability in expected
future cash flows that is attributable to a particular risk), the effective portion of the gain or loss on the derivative instrument
is reported as a component of other comprehensive income (loss), net of taxes and reclassified into earnings in the same period
or periods during which the hedged transaction affects earnings. The non-effective portion of the derivative's change in
fair value is recognized in earnings. For
derivative instruments that are designated as fair value hedges to hedge foreign currency risks for our exposure denominated in
currencies other than the U.S. dollar. Gains
and losses on these forward contracts are recognized in earnings. The
Company's cash flow hedging program is to hedge against the risk of overall changes in cash flows resulting from forecasted foreign
currency salary payments during the year. The Company hedges portions of its forecasted expenses denominated in NIS with forward
exchange contracts. These forward exchange contracts are designated as cash flow hedges, as defined by ASC 815 and Derivative
Implementation Group No. G20, "Cash Flow Hedges: Assessing and Measuring the Effectiveness of a Purchased option Used in a
Cash Flow Hedge" ("DIG 20") and are all effective.
p. Concentrations
of credit risk: Financial
instruments that potentially subject the Company and its subsidiaries to concentrations of credit risk consist principally of
cash and cash equivalents, short-term bank deposits, marketable securities, trade receivables and trade payables. The
majority of the Company's cash and cash equivalents and short-term bank deposits are invested in U.S. dollar instruments with
major banks worldwide. Such cash and cash equivalents and deposits in the United States may be in excess of insured limits and
are not insured in other jurisdictions. Generally, these cash and cash equivalents and deposits may be redeemed upon demand and,
therefore, bear minimal risk. Management believes that the financial institutions that hold the Company's and its subsidiaries'
investments are institutions with high credit standing, and accordingly, minimal credit risk exists with respect to these investments. The
Company's marketable securities consist of securities issued by debentures of Argentinean and Venezuelan government. As of December
31, 2013 and 2014, the CompanyÂ’s entire marketable securities portfolio was invested in debt securities of governmental institutions.
The Company's investment policy limits the amount the Company may invest in any one type of investment or issuer, thereby reducing
credit risk concentrations. The
Company's trade receivables are geographically diversified and derived from sales to customers mainly in the Europe, Latin America
and Asia. The Company and its subsidiaries generally do not require collateral; however, in certain circumstances, the Company
and its subsidiaries may require letters of credit, additional guarantees or advance payments. The
Company and its subsidiaries perform ongoing credit evaluations of their customers and insure certain trade receivables under
credit insurance policies.
q. Allowance
for doubtful debt: An
allowance for doubtful accounts is determined with respect to specific receivables, of which the collection may be doubtful. The
Company charges off receivables when they are deemed uncollectible.
r. Transfers
of financial assets: ASC
860 "Transfers and Servicing", ("ASC 860"), establishes a standard for determining when a transfer of financial
assets should be accounted for as a sale. The Company's arrangements are such that the underlying conditions are met for the transfer
of financial assets to qualify for accounting as a sale. The transfers of financial assets are typically performed by the factoring
of receivables to three financial institutions. As
of December 31, 2014 and 2015, the Company sold trade receivables to several different financial institutions in a total
net amount of $ 13,061 and $ 14,443, respectively. Control and risk of those trade receivables were fully transferred
in accordance with ASC 860. The
agreements, pursuant to which the Company sells its trade receivables, are structured such that the Company (i) transfers
the proprietary rights in the receivable from the Company to the financial institution; (ii) legally isolates the receivable
from the Company's other assets, and presumptively puts the receivable beyond the lawful reach of the Company and its creditors,
even in bankruptcy or other receivership; (iii) confers on the financial institution the right to pledge or exchange the
receivable; and (iv) eliminates the Company's effective control over the receivable, in the sense that the Company is not
entitled and shall not be obligated to repurchase the receivable other than in case of failure by the Company to fulfill its commercial
obligation.
s. Severance
pay: The
Company's severance pay liability for its Israeli employees is calculated pursuant to Israel's Severance Pay Law based on the
most recent salary of the employees multiplied by the number of years of employment, as of the balance sheet date. Employees are
entitled to one month's salary for each year of employment or a portion thereof. The Company's liability for all of its employees
in Israel is fully covered by monthly deposits with pension funds, insurance policies and an accrual. The value of the funds deposited
into pension funds and insurance policies is recorded as an asset - severance pay fund - in the Company's balance sheet. The
severance pay fund includes the deposited funds and accumulated adjustments to the Israeli Consumer Price Index up to the balance
sheet date. The deposited funds may be withdrawn only upon the fulfillment of the obligation pursuant to Israel's Severance Pay
Law or labor agreements. The value of the deposited funds in insurance policies, is based on the cash surrendered value of these
policies, and includes profits / losses. Starting
April 2009, the Company's agreements with new employees in Israel are under section 14 of the Severance Pay Law -1963. The Company's
contributions for severance pay shall replace its severance obligation, no additional calculations shall be conducted between
the parties regarding the matter of severance pay and no additional payments shall be made by the Company to the employee. Further,
the related obligation and amounts deposited on behalf of such obligation are not stated on the balance sheet, as the Company
is legally released from obligation to employees once the deposit amounts have been paid. Severance
expense for the years ended December 31, 2013, 2014 and 2015, amounted to approximately $ 2,588, $ 1,964 and $ 2,673,
respectively.
t. Pension
accrual: The
Company accounts, for its obligations for pension and other postretirement benefits, in accordance with ASC 715, "Compensation
- Retirement Benefits". For more information refer to note 12.
u. Accounting
for stock-based compensation: ASC
topic 718, "Compensation - Stock Compensation", ("ASC 718"), requires companies to estimate the fair value of
equity-based payment awards on the date of grant using an option-pricing model. The value of the portion of the award that is
ultimately expected to vest is recognized as an expense over the requisite service periods in the Company's consolidated statements
of operations. The
Company estimates the fair value of stock options granted under ASC 718 using the binomial model with the following weighted-average
assumptions for 2013, 2014 and 2015:
December
31,
2013 2014 2015
Dividend
yield 0 % 0 % 0 %
Volatility 41%-56 % 49%-65 % 48%-70 %
Risk
free interest 0.1%-2.80 % 0.1%-2.40 % 0.1%-2.40 %
Early
exercise multiple 1.60-1.90 2.20-2.80 2.60-3.40 Risk-free
interest rates are based on the yield from U.S. Treasury zero-coupon bonds with a term equivalent to the contractual life of the
options; volatility of price of the Company's shares based upon actual historical stock price movements. The Early exercise
factor is representing the value of the underlying stock as a multiple of the exercise price of the option which, if achieved,
results in exercise of the option. Early
exercise multiple is based on actual historical exercise activity. The expected term of the options granted is derived from output
of the option valuation model and represents the period of time that options granted are expected to be outstanding. The
Company recognizes compensation expense using the accelerated method for all awards ultimately expected to vest. Estimated forfeitures
are based on historical pre-vesting forfeitures and on management's estimates. ASC topic 718 requires forfeitures to be estimated
and revised, if necessary, in subsequent periods if actual forfeitures differ from those estimates.
v. Fair
value of financial instruments: The
Company applies ASC 820, "Fair Value Measurements and Disclosures". Under this standard, fair value is defined as the
price that would be received to sell an asset or paid to transfer a liability (i.e., the "exit price") in an orderly transaction
between market participants at the measurement date. In
determining fair value, the Company uses various valuation approaches. ASC 820 establishes a hierarchy for inputs used in measuring
fair value that maximizes the use of observable inputs and minimizes the use of unobservable inputs by requiring that the most
observable inputs be used when available. Observable inputs are inputs that market participants would use in pricing the asset
or liability developed based on market data obtained from sources independent of the Company. Unobservable inputs are inputs that
reflect the Company's assumptions about the assumptions market participants would use in pricing the asset or liability developed
based on the best information available in the circumstances. The
hierarchy is broken down into three levels based on the inputs as follows:
Level 1 - Valuations
based on quoted prices in active markets for identical assets that the Company has the ability to access. Valuation adjustments
and block discounts are not applied to Level 1 instruments. Since valuations are based on quoted prices that are readily and
regularly available in an active market, valuation of these products does not entail a significant degree of judgment.
Level 2 - Valuations
based on one or more quoted prices in markets that are not active or for which all significant inputs are observable, either
directly or indirectly.
Level 3 - Valuations
based on inputs that are unobservable and significant to the overall fair value measurement. The
availability of observable inputs can vary from investment to investment and is affected by a wide variety of factors, including,
for example, the type of investment, the liquidity of markets and other characteristics particular to the transaction. To the
extent that valuation is based on models or inputs that are less observable or unobservable in the market, the determination of
fair value requires more judgment and the investments are categorized as Level 3 (see also note 18). The
following methods and assumptions were used by the Company and its subsidiaries in estimating their fair value disclosures for
financial instruments: The
carrying amounts of cash and cash equivalents, short-term bank deposits, trade receivables, other accounts receivable, trade
payables, and other accounts payable and accrued expenses approximate their fair values due to the short-term maturities of such
instruments. The
marketable securities fair value, based on quoted market prices, classified within Level 1 (see also note 3). The
derivative instruments are classified within Level 2 as the valuation inputs are based on quoted prices and market observable
data of similar instruments.
w. Restructuring
costs: The
Company accounts for restructuring activities in accordance to ASC topic 420, "Exit or Disposal Cost Obligations" and
ASC 712 "Compensation-Nonretirement Postemployment Benefits" ("ASC 712"), which requires that a liability for
a cost associated with an exit or disposal activity be recognized and measured, initially at fair value, only when the liability
is incurred and for contractual postemployment benefits under ASC 712 when it is probable that the employees will be entitled
to the benefits, the amount is estimable. For more information regarding impairment of long lived assets related to the restructuring
plan, see note 2i.
x. Comprehensive
income: The
Company accounts for comprehensive income in accordance with ASC topic 220, "Comprehensive Income". This statement establishes
standards for the reporting and display of comprehensive income and its components in a full set of general purpose financial
statements. Comprehensive income generally represents all changes in stockholders' equity during the period except those resulting
from investments by, or distributions to, stockholders. The
components of AOCI, net of tax, were as follows:
Unrealized
Gains (Losses) on Available- for-Sale
Investments Unrealized Gains
(Losses) on
Cash Flow Hedges Foreign
Currency Translation Adjustments Total
Balance
as of January 1, 2015 $ 93 $ 100 $ (4,304 ) $ (4,111 )
Other comprehensive
income (loss) before reclassifications (423 ) (153 ) (4,149 ) (4,725 )
Amounts reclassified
from AOCI 330 (110 ) - 220
Other comprehensive
income (loss) (93 ) (263 ) (4,149 ) (4,505 )
Balance as of December
31, 2015 - $ (163 ) $ (8,453 ) $ (8,616 ) The
effects on net income of amounts reclassified from AOCI for the year ended December 31, 2015 derive from realized gains on Cash
Flow Hedges, included in operating expenses.
y. Treasury
shares: The
Company repurchased its ordinary shares on the open-market and holds such shares as Treasury shares. The Company presents the
cost of repurchased treasury shares as a reduction of shareholders' equity.
z. Basic
and diluted net earnings per share: Basic
net earnings per share are computed based on the weighted average number of ordinary shares outstanding during each year. Diluted
net earnings per share is computed based on the weighted average number of ordinary shares outstanding during each year, plus
dilutive potential ordinary shares considered outstanding during the year, in accordance with ASC topic 260, "Earnings Per
Share" ("ASC 260"). The
total weighted average number of shares related to the outstanding options excluded from the calculations of diluted net earnings
per share due to their anti-dilutive effect was 5,996,622, 6,895,891 and 5,679,468 for the years ended December 31, 2013, 2014
and 2015, respectively.
aa. Advertising expenses: Advertising expenses
are charged to the statements of operations as incurred. Advertising expenses for the years ended December 31, 2013, 2014
and 2015 amounted to $ 325, $235 and $ 350, respectively.
ab. Impact
of recently issued Accounting Standards: In
May 2014, the Financial Accounting Standards Board (FASB) issued Accounting Standards Update No. 2014-09 (ASU 2014-09) "Revenue
from Contracts with Customers." ASU 2014-09 supersedes the revenue recognition requirements in “Revenue Recognition (Topic
605)”, and requires entities to recognize revenue when it transfers promised goods or services to customers in an amount
that reflects the consideration to which the entity expects to be entitled to in exchange for those goods or services. As currently
issued and amended, ASU 2014-09 is effective for annual reporting periods beginning after December 15, 2017, including interim
periods within that reporting period, though early adoption is permitted for annual reporting periods beginning after December
15, 2016. We are currently in the process of evaluating the impact of the adoption of ASU 2014-09 on our consolidated financial
statements, implementing accounting system changes related to the adoption, and considering additional disclosure requirements. In
August 2014, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”)
2014-15, Presentation of Financial Statements-Going Concern (Subtopic 205-40): Disclosure of Uncertainties about an Entitys Ability
to Continue as a Going Concern, which defines managementÂ’s responsibility to assess an entityÂ’s ability to continue
as a going concern, and to provide related footnote disclosures if there is substantial doubt about its ability to continue as
a going concern. The pronouncement is effective for annual reporting periods ending after December 15, 2016 with early adoption
permitted. In
February 2015, the FASB issued Accounting Standards Update No. 2015-02 (ASU 2015-02) "Consolidation (Topic 810): Amendments
to the Consolidation Analysis." ASU 2015-02 changes the analysis that a reporting entity must perform to determine whether
it should consolidate certain types of legal entities. We will adopt this standard in the first quarter of 2016 on a retrospective
basis. We do not expect the adoption of this stand |
