| Summary of Significant Accounting Policies (Policies) - Image P2P Trading Group Limited [Member] | 6 Months Ended | 12 Months Ended |
| Jun. 30, 2017 | Dec. 31, 2016 |
| Basis of Presentation | (a) Basis of Presentation The consolidated financial
statements of the Company have been prepared in accordance with generally accepted accounting principles in the United States
of America. This basis of accounting involves the application of accrual accounting and consequently, revenues and gains are recognized
when earned, and expenses and losses are recognized when incurred. The Company’s consolidated financial statements are expressed
in U.S. dollars. | (a) Basis of presentation
The consolidated financial statements of the Company have been prepared in accordance with generally accepted accounting principles in the United States of America. This basis of accounting involves the application of accrual accounting and consequently, revenues and gains are recognized when earned, and expenses and losses are recognized when incurred. The Company’s consolidated financial statements are expressed in U.S. dollars. |
| Principles of Consolidation | (b) Principles of consolidation The consolidated financial
statements include the accounts of the Company and its subsidiaries. All significant inter-company accounts and transactions have
been eliminated. The consolidated financial statements include 100% of assets, liabilities, and net income or loss of those wholly-owned
subsidiaries. The Company’s subsidiaries
are listed as follows:
Name of Company Place of incorporation Attributable equity interest % Authorized capital
Asia Grand Will Limited Hong Kong 100 HKD 1
Fuzhi Yuan (Shenzhen) Holdings Limited PRC 100 RMB 500,000
Jiangxi Fu Zhi Yuan Biotechnology Co., Limited PRC 100 RMB 50,000,000 | (b) Principles of consolidation
The consolidated financial statements include the accounts of the Company and its subsidiaries. All significant inter-company accounts and transactions have been eliminated. The consolidated financial statements include 100% of assets, liabilities, and net income or loss of those wholly-owned subsidiaries.
The Company’s subsidiaries are listed as follows:
Name of Company Place of incorporation Attributable equity interest % Authorized capital
Asia Grand Will Limited Hong Kong 100 HKD 1
Fuzhi Yuan (Shenzhen) Holdings Limited PRC 100 RMB 500,000
Jiangxi Fu Zhi Yuan Biotechnology Co., Limited PRC 100 RMB 50,000,000 |
| Use of Estimates | (c) Use of estimates The preparation of the financial
statements 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 periods. Management makes these estimates using the best information available at the time the estimates
are made; however, actual results could differ materially from those estimates. | (c) Use of estimates
The preparation of the financial statements 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 periods. Management makes these estimates using the best information available at the time the estimates are made; however, actual results could differ materially from those estimates. |
| Cash and Cash Equivalents | (d) Cash and cash equivalents The Company considers all
highly liquid investments purchased with original maturities of three months or less to be cash equivalents. | (d) Cash and cash equivalents
The Company considers all highly liquid investments purchased with original maturities of three months or less to be cash equivalents. |
| Accounts Receivable | (e) Accounts receivable Accounts receivable are carried
at the amounts invoiced to customers less allowance for doubtful accounts. The allowance is an estimate based on a review of individual
customer accounts on a regular basis. Accounts receivable are written off when deemed uncollectible. Recoveries of accounts receivable
previously written off are recorded when received. The Company reviews the collectability
of accounts receivable based on an assessment of historical experience, current economic conditions, and other collection indicators. | (e) Accounts receivable
Accounts receivable are carried at the amounts invoiced to customers less allowance for doubtful accounts. The allowance is an estimate based on a review of individual customer accounts on a regular basis. Accounts receivable are written off when deemed uncollectible. Recoveries of accounts receivable previously written off are recorded when received.
The Company reviews the collectability of accounts receivable based on an assessment of historical experience, current economic conditions, and other collection indicators. |
| Inventories | (f) Inventories Inventories consisting of
finished goods and raw materials are stated at the lower of cost or market value. Finished goods are comprised of direct materials,
direct labor, inbound shipping costs, and an appropriate proportion of overhead. The Company using first in first out (“FIFO”)
method of accounting for inventory. | (f) Inventories
Inventories consisting of finished goods and raw materials are stated at the lower of cost or market value. Finished goods are comprised of direct materials, direct labor, inbound shipping costs, and an appropriate proportion of overhead. The Company using first in first out (“FIFO”) method of accounting for inventory. The Company recorded inventory impairment expenses in the amounts of $442,081 and nil for the years ended December 31, 2016 and 2015. The expenses were included in cost of revenues. |
| Advances and Prepayments to Suppliers | (g) Advances and prepayments to suppliers The Company makes advance
payment to suppliers and vendors for the procurement of raw materials. Upon physical receipt and inspection of the raw materials
from suppliers the applicable amount is reclassified from advances and prepayments to suppliers to inventory. | (g) Advances and prepayments to suppliers
The Company makes advance payment to suppliers and vendors for the procurement of raw materials. Upon physical receipt and inspection of the raw materials from suppliers the applicable amount is reclassified from advances and prepayments to suppliers to inventory. |
| Property, Plant and Equipment | (h) Property, plant and equipment Plant and equipment are carried
at cost less accumulated depreciation. Depreciation is provided over their estimated useful lives, using the straight-line method.
Estimated useful lives of the plant and equipment are as follows:
Buildings 20 years
Equipment 3 - 10 years
Motor vehicles 4 - 5 years
Furniture and fixtures 5 - 10 years The cost of maintenance and
repairs is charged to expenses as incurred, whereas significant renewals and betterments are capitalized. | (h) Property, plant and equipment
Plant and equipment are carried at cost less accumulated depreciation. Depreciation is provided over their estimated useful lives, using the straight-line method. Estimated useful lives of the plant and equipment are as follows:
Buildings 20 years
Equipment 3 - 10 years
Motor vehicles 4 - 5 years
Furniture and fixtures 5 - 10 years The cost of maintenance and
repairs is charged to expenses as incurred, whereas significant renewals and betterments are capitalized. |
| Construction in Progress and Prepayments for Equipment | (i) Construction in progress and prepayments for equipment Construction in progress
represents direct and indirect construction or acquisition costs for buildings. Prepayments for equipment represents advances
and down-payments for equipment that is either yet to be delivered or has been delivered but requires installation and testing
in order to be put in to use. Amounts recorded as construction in progress and prepayments for equipment are transferred to plant
and equipment when substantially all the activities necessary to prepare the assets for their intended use are completed. The
Company’s begins depreciating those assets when they have transferred to plant and equipment and put into use. | (i) Construction in progress and prepayments for equipment
Construction in progress represents direct and indirect construction or acquisition costs for buildings. Prepayments for equipment represents advances and down-payments for equipment that is either yet to be delivered or has been delivered but requires installation and testing in order to be put in to use. Amounts recorded as construction in progress and prepayments for equipment are transferred to plant and equipment when substantially all the activities necessary to prepare the assets for their intended use are completed. The Company’s begins depreciating those assets when they have transferred to plant and equipment and put into use. |
| Land Use Rights | (j) Land use rights Land use rights are carried
at cost and amortized on a straight-line basis over a specified period. Amortization is provided using the straight-line method
over the life of 50 years. | (j) Land use rights
Land use rights are carried at cost and amortized on a straight-line basis over a specified period. Amortization is provided using the straight-line method over the life of 50 years. |
| Accounting for the Impairment of Long-lived Assets | (k) Accounting for the impairment of long-lived assets The Company annually reviews
its long-lived assets for impairment or whenever events or changes in circumstances indicate that the carrying amount of assets
may not be recoverable. Impairment may be the result of becoming obsolete from a change in the industry or new technologies. Impairment
is present if carrying amount of an asset is less than its undiscounted cash flows to be generated. If an asset is considered
impaired, a loss is recognized based on the amount by which the carrying amount exceeds the fair market value of the asset. Assets
to be disposed of are reported at the lower of the carrying amount or fair value less costs to sell. | (k) Accounting for the impairment of long-lived assets
The Company annually reviews its long-lived assets for impairment or whenever events or changes in circumstances indicate that the carrying amount of assets may not be recoverable. Impairment may be the result of becoming obsolete from a change in the industry or new technologies. Impairment is present if carrying amount of an asset is less than its undiscounted cash flows to be generated.
If an asset is considered impaired, a loss is recognized based on the amount by which the carrying amount exceeds the fair market value of the asset. Assets to be disposed of are reported at the lower of the carrying amount or fair value less costs to sell. |
| Revenue Recognition | (l) Revenue recognition The Company’s revenue
recognition policies are in compliance with Staff accounting bulletin (SAB) 104. Sales revenue is recognized at the date of shipment
to customers when a formal arrangement exists, the price is fixed or determinable, the delivery is completed, no other significant
obligations of the Company exist and collectability is reasonably assured. Payments received before all of the relevant criteria
for revenue recognition are satisfied are recorded as customer deposits. The Company’s revenue consists of invoiced value
of goods, net of a value-added tax (VAT). | (l) Revenue recognition
The Company’s revenue recognition policies are in compliance with Staff Accounting Bulletin (SAB) 104. Sales revenue is recognized at the date of shipment to customers when a formal arrangement exists, the price is fixed or determinable, the delivery is completed, no other significant obligations of the Company exist and collectability is reasonably assured. Payments received before all of the relevant criteria for revenue recognition are satisfied are recorded as customer deposits. The Company’s revenue consists of invoiced value of goods, net of a value-added tax (VAT). |
| Advertising | (m) Advertising All advertising costs are expensed
as incurred. Advertising expense for the six months ended June 30, 2017 and 2016 were $10,490 and nil, respectively. | (m) Advertising
All advertising costs are expensed as incurred. The Company incurred $440 and nil in advertising expenses for the years ended December 31, 2016 and 2015. |
| Shipping and Handling | (n) Shipping and handling Outbound
shipping and handling are expensed as incurred. | (n) Shipping and handling
Outbound shipping and handling are expensed as incurred. |
| Research and Development | (o) Research and development All research and development
costs are expensed as incurred. Research and development expense were $23,721 and nil for the six months ended June 30, 2017 and
2016. | (o) Research and development
All research and development costs are expensed as incurred. Research and development expense were $31,366 and nil for the years ended December 31, 2016 and 2015. |
| Retirement Benefits | (p) Retirement benefits Retirement benefits in the
form of mandatory government sponsored defined contribution plans are charged to the either expenses as incurred or allocated
to inventory as a part of overhead. | (p) Retirement benefits
Retirement benefits in the form of mandatory government sponsored defined contribution plans are charged to the either expenses as incurred or allocated to inventory as part of overhead. |
| Income Taxes | (q) Income taxes The Company accounts for
income tax using an asset and liability approach and allows for recognition of deferred tax benefits in future years. Under the
asset and liability approach, deferred taxes are provided for the net tax effects of temporary differences between the carrying
amounts of assets and liabilities for financial reporting purposes and the amounts used for income tax purposes. A valuation allowance
is provided for deferred tax assets if it is more likely than not these items will either expire before the Company is able to
realize their benefits, or that future realization is uncertain. | (q) Income taxes
The Company accounts for income tax using an asset and liability approach and allows for recognition of deferred tax benefits in future years. Under the asset and liability approach, deferred taxes are provided for the net tax effects of temporary differences between the carrying amounts of assets and liabilities for financial reporting purposes and the amounts used for income tax purposes. A valuation allowance is provided for deferred tax assets if it is more likely than not these items will either expire before the Company is able to realize their benefits, or that future realization is uncertain. |
| Statutory Reserves | (r) Statutory reserves Statutory reserves are referring
to the amount appropriated from the net income in accordance with laws or regulations, which can be used to recover losses and
increase capital, as approved, and are to be used to expand production or operations. PRC laws prescribe that an enterprise operating
at a profit must appropriate and reserve, on an annual basis, an amount equal to 10% of its profit. Such an appropriation is necessary
until the reserve reaches a maximum that is equal to 50% of the enterprise’s PRC registered capital. | (r) Statutory reserves
Statutory reserves are referring to the amount appropriated from the net income in accordance with laws or regulations, which can be used to recover losses and increase capital, as approved, and are to be used to expand production or operations. PRC laws prescribe that an enterprise operating at a profit must appropriate and reserve, on an annual basis, an amount equal to 10% of its profit. Such an appropriation is necessary until the reserve reaches a maximum that is equal to 50% of the enterprise’s PRC registered capital. |
| Foreign Currency Translation | (s) Foreign currency translation The accompanying financial
statements are presented in United States dollars (“USD”). The functional currency of the Company is the USD. The functional
currency of AGW is the Hong Kong dollar (“HKD”). The functional currency of SZFY and JXFZYBL is the Renminbi (“RMB”).
The financial statements of the Companies subsidiaries have been translated into United States dollars from RMB and HKD at year-end
exchange rates as to assets and liabilities and average exchange rates as to revenues and expenses. Capital accounts are translated
at their historical exchange rates when the capital transactions occurred.
Exchange Rates 6/30/2017 12/31/2016 6/30/2016
Period end RMB: US$ exchange rate 6.7769 6.9472 6.6433
Average RMB: US$ exchange rate 6.8743 6.6418 6.5354
Period end HKD: US$ exchange rate 7.8056 7.7617 7.7586
Average HKD: US$ exchange rate 7.7731 7.7521 7.7669 The RMB is not freely convertible
into foreign currency and all foreign exchange transactions must take place through authorized institutions. No representation
is made that the RMB amounts could have been, or could be, converted into US Dollars at the rates used in translation. | (s) Foreign currency translation
The accompanying financial statements are presented in United States dollars (“USD”). The functional currency of the Company is the USD. The functional currency of AGW is the Hong Kong dollar (“HKD”). The functional currency of SZFY and JXFZYBL is the Renminbi (“RMB”). The financial statements of the Companies subsidiaries have been translated into United States dollars from RMB and HKD at year-end exchange rates as to assets and liabilities and average exchange rates as to revenues and expenses. Capital accounts are translated at their historical exchange rates when the capital transactions occurred.
Exchange Rates 12/31/2016 12/31/2015
Year end RMB : US$ exchange rate 6.9472 6.4907
Average year RMB : US$ exchange rate 6.6418 6.2175
Year end HKD : US$ exchange rate 7.7617 7.7504
Average year HKD : US$ exchange rate 7.7521 7.7521 The RMB is not freely convertible
into foreign currency and all foreign exchange transactions must take place through authorized institutions. No representation
is made that the RMB amounts could have been, or could be, converted into US Dollars at the rates used in translation. |
| Earnings Per Share | (t) Earnings per share The Company computes earnings
per share (“EPS”) in accordance with ASC Topic 260, “Earnings per share”. Basic EPS is measured as the
income or loss available to common shareholders divided by the weighted average common shares outstanding for the period. Diluted
EPS is similar to basic EPS but presents the dilutive effect on a per share basis of potential common shares (e.g., convertible
securities, options, and warrants) as if they had been converted at the beginning of the periods presented, or issuance date,
if later. Potential common shares that have an anti-dilutive effect (i.e. those that increase income per share or decrease loss
per share) are excluded from the calculation of diluted EPS. | (t) Earnings per share
The Company computes earnings per share (“EPS”) in accordance with ASC Topic 260, “Earnings per share”. Basic EPS is measured as the income or loss available to common shareholders divided by the weighted average common shares outstanding for the period. Diluted EPS is similar to basic EPS but presents the dilutive effect on a per share basis of potential common shares (e.g., convertible securities, options, and warrants) as if they had been converted at the beginning of the periods presented, or issuance date, if later. Potential common shares that have an anti-dilutive effect (i.e. those that increase income per share or decrease loss per share) are excluded from the calculation of diluted EPS. As of for the years ended December 31, 2016 and 2015, the Company did not have any potentially dilutive securities outstanding. |
| Financial Instruments | (u) Financial instruments The Company’s accounts
for financial instruments in accordance to ASC Topic 820, “Fair Value Measurements and Disclosures,” which requires
disclosure of the fair value of financial instruments held by the Company and ASC Topic 825, “Financial Instruments,”
which defines fair value, and establishes a three-level valuation hierarchy for disclosures of fair value measurement that enhances
disclosure requirements for fair value measures. The carrying amounts reported in the consolidated balance sheets for receivables
and current liabilities each qualify as financial instruments and are a reasonable estimate of their fair values because of the
short period of time between the origination of such instruments and their expected realization and their current market rate of
interest. The three levels of valuation hierarchy are defined as follows:
● Level 1 inputs to the valuation methodology are quoted prices for identical assets or liabilities in active markets.
● Level 2 inputs to the valuation methodology include quoted prices for similar assets and liabilities in active markets, and inputs that are observable for the asset or liability, either directly or indirectly, for substantially the full term of the financial instrument.
● Level 3 inputs to the valuation methodology are unobservable and significant to the fair value measurement. | (u) Financial instruments
The Company’s accounts for financial instruments in accordance to ASC Topic 820, “Fair Value Measurements and Disclosures,” which requires disclosure of the fair value of financial instruments held by the Company and ASC Topic 825, “Financial Instruments,” which defines fair value, and establishes a three-level valuation hierarchy for disclosures of fair value measurement that enhances disclosure requirements for fair value measures. The carrying amounts reported in the consolidated balance sheets for receivables and current liabilities each qualify as financial instruments and are a reasonable estimate of their fair values because of the short period of time between the origination of such instruments and their expected realization and their current market rate of interest. The three levels of valuation hierarchy are defined as follows:
● Level 1 inputs to the valuation methodology are quoted prices for identical assets or liabilities in active markets.
● Level 2 inputs to the valuation methodology include quoted prices for similar assets and liabilities in active markets, and inputs that are observable for the asset or liability, either directly or indirectly, for substantially the full term of the financial instrument.
● Level 3 inputs to the valuation methodology are unobservable and significant to the fair value measurement. |
| Commitments and Contingencies | (v) Commitments and contingencies Liabilities for loss contingencies
arising from claims, assessments, litigation, fines and penalties and other sources are recorded when it is probable that a liability
has been incurred and the amount of the assessment can be reasonably estimated. | (v) Commitments and contingencies
Liabilities for loss contingencies arising from claims, assessments, litigation, fines and penalties and other sources are recorded when it is probable that a liability has been incurred and the amount of the assessment can be reasonably estimated. |
| Comprehensive Income | (w) Comprehensive income Comprehensive income is defined
to include all changes in equity except those resulting from investments by owners and distributions to owners. Among other disclosures,
all items that are required to be recognized under current accounting standards as components of comprehensive income are required
to be reported in a financial statement that is presented with the same prominence as other financial statements. The Company’s
current component of other comprehensive income includes the foreign currency translation adjustment and unrealized gain or loss. | (w) Comprehensive income
Comprehensive income is defined to include all changes in equity except those resulting from investments by owners and distributions to owners. Among other disclosures, all items that are required to be recognized under current accounting standards as components of comprehensive income are required to be reported in a financial statement that is presented with the same prominence as other financial statements. The Company’s current component of other comprehensive income includes the foreign currency translation adjustment and unrealized gain or loss. |
| Goodwill | (x) Goodwill Goodwill represents the excess
of the purchase price over the fair value of the net tangible and identifiable assets acquired in a business combination. In accordance
with FASB ASC Topic 350, “Goodwill and Other Intangible Assets”, goodwill is no longer subject to amortization. Rather,
goodwill is subject to at least an annual assessment for impairment, applying a fair-value based test. Fair value is generally
determined using a discounted cash flow analysis. | (x) Goodwill
Goodwill represents the excess of the purchase price over the fair value of the net tangible and identifiable assets acquired in a business combination. In accordance with FASB ASC Topic 350, “Goodwill and Other Intangible Assets”, goodwill is no longer subject to amortization. Rather, goodwill is subject to at least an annual assessment for impairment, applying a fair-value based test. Fair value is generally determined using a discounted cash flow analysis. |
| Recent Accounting Pronouncements | (y) Recent accounting pronouncements On January 5, 2016, the FASB
issued ASU 2016-01 “Financial Instruments—Overall (Subtopic 825-10): Recognition and Measurement of Financial Assets
and Financial Liabilities”, which amends the guidance in U.S. GAAP on the classification and measurement of financial instruments.
Although the ASU retains many current requirements, it significantly revises an entity’s accounting related to (1) the classification
and measurement of investments in equity securities and (2) the presentation of certain fair value changes for financial liabilities
measured at fair value. The ASU also amends certain disclosure requirements associated with the fair value of financial instruments.
The new standard is effective for fiscal years and interim periods within those fiscal years beginning after December 15, 2017. On February 25, 2016, the
FASB issued ASU 2016-02 “Leases (Topic 842)”, its new standard on accounting for leases. ASU 2016-02 introduces a lessee
model that brings most leases on the balance sheet. The new standard also aligns many of the underlying principles of the new lessor
model with those in ASC 606, the FASB’s new revenue recognition standard (e.g., those related to evaluating when profit can
be recognized). Furthermore, the ASU addresses
other concerns related to the current leases model. For example, the ASU eliminates the requirement in current U.S. GAAP for an
entity to use bright-line tests in determining lease classification. The standard also requires lessors to increase the transparency
of their exposure to changes in value of their residual assets and how they manage that exposure. The new model represents a wholesale
change to lease accounting. As a result, entities will face significant implementation challenges during the transition period
and beyond, such as those related to: Applying judgment and estimating.
● Managing the complexities of data collection, storage, and maintenance.
● Enhancing information technology systems to ensure their ability to perform the calculations necessary for compliance with reporting requirements.
● Refining internal controls and other business processes related to leases.
● Determining whether debt covenants are likely to be affected and, if so, working with lenders to avoid violations.
● Addressing any income tax implications. The new guidance will be effective
for public business entities for annual periods beginning after December 15, 2018 (e.g., calendar periods beginning on January
1, 2019), and interim periods therein. On March 15, 2016, the FASB
issued ASU 2016-07 “Investments—Equity Method and Joint Ventures (Topic 323): Simplifying the Transition to the Equity
Method of Accounting”, which simplifies the equity method of accounting by eliminating the requirement to retrospectively
apply the equity method to an investment that subsequently qualifies for such accounting as a result of an increase in the level
of ownership interest or degree of influence. Consequently, when an investment qualifies for the equity method (as a result of
an increase in the level of ownership interest or degree of influence), the cost of acquiring the additional interest in the investee
would be added to the current basis of the investor’s previously held interest and the equity method would be applied subsequently
from the date on which the investor obtains the ability to exercise significant influence over the investee. The ASU further requires
that unrealized holding gains or losses in accumulated other comprehensive income related to an available-for-sale security that
becomes eligible for the equity method be recognized in earnings as of the date on which the investment qualifies for the equity
method. The guidance in the ASU is
effective for all entities for fiscal years beginning after December 15, 2016, including interim periods within those fiscal years;
early adoption is permitted for all entities. Entities are required to apply the guidance prospectively to increases in the level
of ownership interest or degree of influence occurring after the ASU’s effective date. Additional transition disclosures
are not required upon adoption. On March 17, 2016, the FASB
issued ASU 2016-08 “Revenue from Contracts with Customers (Topic 606): Principal versus Agent Considerations (Reporting Revenue
Gross versus Net)”, which amends the principal-versus-agent implementation guidance and illustrations in the Board’s
new revenue standard (ASU 2014-09). The FASB issued the ASU in response to concerns identified by stakeholders, including those
related to (1) determining the appropriate unit of account under the revenue standard’s principal-versus-agent guidance and
(2) applying the indicators of whether an entity is a principal or an agent in accordance with the revenue standard’s control
principle. Among other things, the ASU clarifies that an entity should evaluate whether it is the principal or the agent for each
specified good or service promised in a contract with a customer. As defined in the ASU, a specified good or service is “a
distinct good or service (or a distinct bundle of goods or services) to be provided to the customer.” Therefore, for contracts
involving more than one specified good or service, the entity may be the principal for one or more specified goods or services
and the agent for others. The ASU has the same effective
date as the new revenue standard (as amended by the one-year deferral and the early adoption provisions in ASU 2015-14). In addition,
entities are required to adopt the ASU by using the same transition method they used to adopt the new revenue standard. On March 30, 2016, the FASB
issued ASU 2016-09 “Compensation—Stock Compensation (Topic 718): Improvements to Employee Share-Based Payment Accounting”,
which simplifies several aspects of the accounting for employee share-based payment transactions for both public and nonpublic
entities, including the accounting for income taxes, forfeitures, and statutory tax withholding requirements, as well as classification
in the statement of cash flows. The ASU is effective for annual
reporting periods beginning after December 15, 2016, including interim periods within those annual reporting periods. The Company is currently
assessing the above the accounting pronouncements and their potential impact from their adoption on the financial statements. | (y) Recent accounting pronouncements
On January 5, 2016, the FASB issued ASU 2016-01 “Financial Instruments—Overall (Subtopic 825-10): Recognition and Measurement of Financial Assets and Financial Liabilities”, which amends the guidance in U.S. GAAP on the classification and measurement of financial instruments. Although the ASU retains many current requirements, it significantly revises an entity’s accounting related to (1) the classification and measurement of investments in equity securities and (2) the presentation of certain fair value changes for financial liabilities measured at fair value. The ASU also amends certain disclosure requirements associated with the fair value of financial instruments. The new standard is effective for fiscal years and interim periods within those fiscal years beginning after December 15, 2017. On February 25, 2016, the FASB issued
ASU 2016-02 “Leases (Topic 842)”, its new standard on accounting for leases. ASU 2016-02 introduces a lessee model
that brings most leases on the balance sheet. The new standard also aligns many of the underlying principles of the new lessor
model with those in ASC 606, the FASB’s new revenue recognition standard (e.g., those related to evaluating when profit can
be recognized). Furthermore, the ASU addresses other
concerns related to the current leases model. For example, the ASU eliminates the requirement in current U.S. GAAP for an entity
to use bright-line tests in determining lease classification. The standard also requires lessors to increase the transparency of
their exposure to changes in value of their residual assets and how they manage that exposure. The new model represents a wholesale
change to lease accounting. As a result, entities will face significant implementation challenges during the transition period
and beyond, such as those related to: Applying judgment and estimating.
● Managing the complexities of data collection, storage, and maintenance.
● Enhancing information technology systems to ensure their ability to perform the calculations necessary for compliance with reporting requirements.
● Refining internal controls and other business processes related to leases.
● Determining whether debt covenants are likely to be affected and, if so, working with lenders to avoid violations.
● Addressing any income tax implications. The new guidance will be effective
for public business entities for annual periods beginning after December 15, 2018 (e.g., calendar periods beginning on January
1, 2019), and interim periods therein. On March 15, 2016, the FASB issued
ASU 2016-07 “Investments—Equity Method and Joint Ventures (Topic 323): Simplifying the Transition to the Equity Method
of Accounting”, which simplifies the equity method of accounting by eliminating the requirement to retrospectively apply
the equity method to an investment that subsequently qualifies for such accounting as a result of an increase in the level of ownership
interest or degree of influence. Consequently, when an investment qualifies for the equity method (as a result of an increase in
the level of ownership interest or degree of influence), the cost of acquiring the additional interest in the investee would be
added to the current basis of the investor’s previously held interest and the equity method would be applied subsequently
from the date on which the investor obtains the ability to exercise significant influence over the investee. The ASU further requires
that unrealized holding gains or losses in accumulated other comprehensive income related to an available-for-sale security that
becomes eligible for the equity method be recognized in earnings as of the date on which the investment qualifies for the equity
method. The guidance in the ASU is effective
for all entities for fiscal years beginning after December 15, 2016, including interim periods within those fiscal years; early
adoption is permitted for all entities. Entities are required to apply the guidance prospectively to increases in the level of
ownership interest or degree of influence occurring after the ASU’s effective date. Additional transition disclosures are
not required upon adoption. On March 17, 2016, the FASB issued
ASU 2016-08 “Revenue from Contracts with Customers (Topic 606): Principal versus Agent Considerations (Reporting Revenue
Gross versus Net)”, which amends the principal-versus-agent implementation guidance and illustrations in the Board’s
new revenue standard (ASU 2014-09). The FASB issued the ASU in response to concerns identified by stakeholders, including those
related to (1) determining the appropriate unit of account under the revenue standard’s principal-versus-agent guidance and
(2) applying the indicators of whether an entity is a principal or an agent in accordance with the revenue standard’s control
principle. Among other things, the ASU clarifies that an entity should evaluate whether it is the principal or the agent for each
specified good or service promised in a contract with a customer. As defined in the ASU, a specified good or service is “a
distinct good or service (or a distinct bundle of goods or services) to be provided to the customer.” Therefore, for contracts
involving more than one specified good or service, the entity may be the principal for one or more specified goods or services
and the agent for others. The ASU has the same effective date
as the new revenue standard (as amended by the one-year deferral and the early adoption provisions in ASU 2015-14). In addition,
entities are required to adopt the ASU by using the same transition method they used to adopt the new revenue standard. On March 30, 2016, the FASB issued
ASU 2016-09 “Compensation—Stock Compensation (Topic 718): Improvements to Employee Share-Based Payment Accounting”,
which simplifies several aspects of the accounting for employee share-based payment transactions for both public and nonpublic
entities, including the accounting for income taxes, forfeitures, and statutory tax withholding requirements, as well as classification
in the statement of cash flows. The ASU is effective for annual reporting
periods beginning after December 15, 2016, including interim periods within those annual reporting periods. The Company is currently assessing
the above the accounting pronouncements and their potential impact from their adoption on the financial statements. |
