| Summary of Significant Accounting Policies (Policies) | 12 Months Ended |
| Jun. 30, 2019 |
| Accounting Policies [Abstract] | |
| Basis of presentation and principles of consolidation | Basis
of presentation and principles of consolidation The
accompanying consolidated financial statements have been prepared in accordance with the United States generally accepted
accounting principles("U.S. GAAP"). The
accompanying consolidated financial statements include the financial statements of CLPS and its subsidiaries. All inter-company
balances and transactions have been eliminated upon consolidation. Results of subsidiaries and businesses acquired from third
parties are consolidated from the date on which control is transferred to the Company. |
| Use of estimates and assumptions | Use
of estimates and assumptions In preparing the consolidated financial statements
in conformity with U.S. GAAP, management makes estimates and assumptions that affect the reported amounts of assets and liabilities
and disclosure of contingent assets and liabilities at the date of the consolidated financial statements and the reported amounts
of revenues and expenses during the reporting period. These estimates are based on information as of the date of the consolidated
financial statements. Significant estimates required to be made by management include, but are not limited to, valuation of accounts
receivable, prepayments, deposits and other assets, useful lives of property and equipment and intangible assets, goodwill impairment,
the impairment of long-lived assets and investments, purchase price allocation for business combination, application of percentage-of-completion
method for revenue recognition, provision for accrued expenses and other current liabilities, valuation allowance of deferred
tax assets, provision for uncertain tax positions, and valuation for warrants and share-based compensation. Actual results could
differ from those estimates. |
| Cash and cash equivalents | Cash
and cash equivalents Cash
and cash equivalents primarily consist of cash and bank deposits, which are unrestricted as to withdrawal and use. The Company
considers all highly liquid investment instruments with an original maturity of three months or less from the date of purchase
to be cash equivalents. The Company maintains most of its bank accounts in the PRC. Cash balances in bank accounts in PRC are
not insured by the Federal Deposit Insurance Corporation or other programs. |
| Short-term investments | Short-term
investments All
highly liquid investments with original maturities of greater than three months, but less than twelve months, are classified as
short-term investments. Short-term investments represent investments in wealth management products placed with certain financial
institutions. The principal amounts of these products are not guaranteed. The Company accounts for short-term investments in accordance
with ASC topic 320 ("ASC 320"), Investments – Debt and Equity Securities |
| Accounts receivable and allowance for doubtful accounts | Accounts
receivable and allowance for doubtful accounts Accounts
receivable are carried at net realizable value. An allowance for doubtful accounts is recorded in the period when loss is probable.
The Company determines the adequacy of a reserve for doubtful accounts based on individual account analysis and historical collection
trends. The Company establishes a provision for doubtful receivables when there is objective evidence that the Company may not
be able to collect amounts due. The allowance is based on management's best estimates of specific losses on individual customer
exposures, as well as the historical trends of collections. Delinquent account balances are written-off against the allowance
for doubtful accounts after management has determined that the likelihood of collection is not probable. |
| Prepayments, deposit and other assets | Prepayments,
deposit and other assets Prepayment, deposit and other assets primarily
consists of advances and deposits to suppliers for purchasing goods or services that have not been received or provided and advances
to employees. These advances are interest free, unsecured and short-term in nature and are reviewed periodically to determine whether
their carrying value has become impaired. An allowance for doubtful accounts is recorded in the period when loss is probable. |
| Long-term investments | Long-term
investments The
Company holds investments in equity method and cost method investees. Investee companies over which the
Company has the ability to exercise significant influence but does not have a controlling interest and is not the primary
beneficiary are accounted for using the equity method. Significant influence is generally considered to exist when the
Company has an ownership interest in the voting shares of the investee between 20% and 50%, and other factors, such as
representation in the investee's Board of Directors, voting rights and the impact of commercial arrangements, are
considered in determining whether the equity method of accounting is appropriate. Under this method of accounting, the
Company records its proportionate share of the net earnings or losses of equity method investees and a corresponding increase
or decrease to the investment balances. Equity method adjustments include the Company's proportionate share of investee
income or loss, adjustments to recognize certain differences between the Company's carrying value and its equity in net
assets of the investee at the date of investment, impairment, and other adjustments required by the equity method. The
Company evaluates its equity method investments for impairment whenever events or changes in circumstances indicate that the
carrying amounts of such investments may not be recoverable. An impairment loss on an equity method investment is recognized
in the consolidated statements of comprehensive income (loss) when the decline in value is determined to be
other-than-temporary. Investments
in entities in which the Company has no control or significant influence and is not the primary beneficiary are accounted for
at cost. Cost method investments are recorded at the lower of cost or fair value. If declines in the value of cost method investments
are determined to be other-than temporary, a loss is recorded in the current period in the consolidated statements of comprehensive
income (loss). |
| Business combination | Business
combination The Company accounts for all business combinations
under the purchase method of accounting in accordance with ASC 805, Business Combinations The determination and allocation of fair
values to the identifiable net assets acquired, liabilities assumed and non-controlling interest is based on various assumptions
and valuation methodologies requiring considerable judgment from management. The most significant variables in these valuations
are discount rates, terminal values, the number of years on which to base the cash flow projections, as well as the assumptions
and estimates used to determine the cash inflows and outflows. The Company determines discount rates to be used based on the risk
inherent in the acquiree's current business model and industry comparisons. Although the Company believes that the assumptions
applied in the determination are reasonable based on information available at the date of acquisition, actual results may differ
from forecasted amounts and the differences could be material. |
| Non-controlling interests | Non-controlling
interests The
non-controlling interests are presented in the consolidated balance sheets, separately from equity attributable to the shareholders
of the Company. Non-controlling interests in the results of the Company are presented on the face of the consolidated statement
of comprehensive income (loss) as an allocation of the total income or loss for the year between non-controlling interest holders
and the shareholders of the Company. |
| Property and equipment, net | Property
and equipment, net Property
and equipment, net, are stated at cost less accumulated depreciation. The straight-line method is used to compute depreciation
and amortization over the estimated useful lives of the assets, as follows:
Useful
life
Leasehold
improvements The
shorter of lease terms or the estimated useful lives
Automobiles 5
years
Equipment
and office furniture 3-5
years Expenditures
for maintenance and repairs, which do not materially extend the useful lives of the assets, are charged to expense as incurred.
Expenditures for major renewals and betterments which substantially extend the useful life of assets are capitalized. The cost
and related accumulated depreciation of assets retired or sold are removed from the respective accounts, and any gain or loss
is charged to the statement of comprehensive income (loss). |
| Intangible assets | Intangible
assets Intangible
assets are carried at cost less accumulated amortization and any recorded impairment. Intangible assets acquired through business
combinations are recognized as assets separate from goodwill if they satisfy either the "contractual-legal" or "separability"
criterion, and are measured at fair value upon acquisition. Amortization
is computed using the straight-line method over the following estimated useful lives:
Useful
life
Customer
contracts 3
– 10 years The
Company does not have any indefinite-lived intangibles other than goodwill. |
| Goodwill | Goodwill Goodwill represents the excess of the consideration
over the fair value of the net assets acquired at the date of acquisition. Goodwill is not amortized but rather tested for impairment
at least annually at the reporting unit level by applying a fair-value based test in accordance with accounting and disclosure
requirements for goodwill and other indefinite-lived intangible assets. This test is performed by management annually or more frequently
if the Company believes impairment indicators are present. The Company had only one reporting unit (that also represented the Company's
single operating segment) as of June 30, 2019 and 2018. Goodwill was allocated 100% to the reporting unit as of June 30, 2019 and
2018. The Company has the option to assess qualitative factors first to determine whether it is necessary to perform the two-step
test in accordance with ASC 350-20, Intangibles - Goodwill and Other In
performing the two-step quantitative impairment test, the first step compares the carrying amount of the reporting unit to the
fair value of the reporting unit based on estimated fair value using a combination of the income approach and the market approach.
If the fair value of the reporting unit exceeds the carrying value of the reporting unit, goodwill is not impaired and the Company
is not required to perform further testing. If the carrying value of the reporting unit exceeds the fair value of the reporting
unit, then the Company must perform the second step of the impairment test in order to determine the implied fair value of the
reporting unit's goodwill. The fair value of the reporting unit is allocated to its assets and liabilities in a manner similar
to a purchase price allocation in order to determine the implied fair value of the reporting unit goodwill. If the carrying amount
of the goodwill is greater than its implied fair value, the excess is recognized as an impairment loss in general and administrative
expenses. No
impairment loss was provided for the years ended June 30, 2019, 2018 and 2017. |
| Impairment of long-lived assets | Impairment
of long-lived assets The Company reviews its long-lived assets,
other than goodwill, including property and equipment and intangible assets with definite lives for impairment whenever events
or changes in circumstances indicate that the carrying amount of an asset may no longer be recoverable. When these events occur,
the Company measures impairment by comparing the carrying values of the long-lived assets to the estimated undiscounted future
cash flows expected to result from the use of the assets and their eventual disposition. If the sum of the expected undiscounted
cash flows is less than the carrying amounts of the assets, the Company would recognize an impairment loss based on the excess
of the carrying value over the fair value of the assets. Fair value is generally determined by discounting the cash flows expected
to be generated by the asset, when the market prices are not readily available. The adjusted carrying amount of the asset becomes
the new cost basis and depreciated over the asset's remaining useful live. Long-lived assets are grouped with other assets
and liabilities at the lowest level for which identifiable cash flows are largely independent of the cash flows of other assets
and liabilities for the purpose of the impairment testing. No impairment loss was provided for the
years ended June 30, 2019, 2018 and 2017. |
| Revenue recognition | Revenue recognition The
Company provides a comprehensive range of IT services and solutions, which primarily are on a time-and-expense basis, or fixed-price
basis. Revenue
is considered realizable and earned when all of the following criteria are met: persuasive evidence of a sales arrangement exists;
delivery has occurred or services have been rendered; the price is fixed or determinable; and collectability is reasonably assured. Time-and-expense
basis contracts Revenues
from time-and-expense basis contracts are recognized as the related services are rendered assuming all other basic revenue recognition
criteria are met. Under time-and-expense basis contracts, the Company is reimbursed for actual hours incurred at pre-agreed negotiated
hourly billing rates. Clients may terminate the contracts at any time before the work is completed but are obligated to pay the
actual service hours incurred through the termination date at the contract billing rates. Fixed-price
basis contracts Revenues
from fixed-price customized solution contracts require the Company to perform services for systems design, planning and integrating
based on customers' specific needs which requires significant production and customization. The required customization work
period is generally less than one year. Upon delivery of the services, customer acceptance is generally required. In the same
contract, the Company is generally required to provide post-contract customer support ("PCS') for a period from three
months to one year ("PCS period") after the customized application is delivered. The type of service for PCS clause
is generally not specified in the contract or stand-ready service on when-and-if-available basis. Revenue is recognized using contract accounting
in accordance with Accounting Standards Codification ("ASC") 605-35-25. The revenue recognition for these contracts
varies depending on the terms of the individual contracts, and may be recognized proportionally over the term of the contract.
Revenue is recognized as the service is performed using the percentage of completion method of accounting, under which the total
value of revenue is recognized on the basis of the percentage that total labor cost to date bears to the total expected labor costs.
The Company considers labor time, the input measurement, is the best available indicator of the pattern and timing in which contract
obligations are fulfilled. The Company has a long history of providing these services resulting in its ability to reasonably estimate
the service hours expected to be incurred and the progress toward completion on each fixed-price customized contract based on the
proportion of service hours incurred to date relative to total estimated service hours at completion. Estimated contract costs
are based on the budgeted service hours, which are updated based on the progress toward completion on a monthly basis. Provisions
for estimated losses, if any, on uncompleted contracts are recorded in the period in which such losses become probable based on
the current contract estimates. To date, the Company has not incurred a material loss on any contracts. Differences between the timing of billings
and the recognition of revenues are recorded as unbilled receivables which is included in the prepayments, deposits and other assets,
net, or deferred revenues on the consolidated balance sheets. Costs incurred in advance of revenue recognition
arising from direct and incremental staff costs in respect of services provided under the fixed fee contracts according to the
customer's requirements prior to the delivery of services are recoded as deferred contract costs which is included in the
prepayments, deposits and other assets, net, on the consolidated balance sheets. Such deferred contract costs will be recognized
upon the recognition of the related revenues. Revenue includes reimbursements of travel and
out-of-pocket expense, with equivalent amounts of expense recorded in cost of revenues. The Company is subject to value added tax (the
"VAT") that is imposed on and concurrent with the revenues earned for services provided in the PRC. The Company's
applicable value added tax rate is 6%. VAT are recorded as reduction of revenues when incurred. |
| Cost of revenues | Cost
of revenues Cost of revenues mainly consisted of compensation
expenses for the Company's IT professionals, travel expenses and material costs. |
| Research and development expenses | Research
and development expenses Research and development expenses incurred
in the development of new software modules and products in conjunction with anticipated customer projects. Technological
feasibility for the Company's software products is reached before the products are released for sale. To date,
expenditures incurred after technological feasibility was established and prior to completion of software development have not
been material, and accordingly, the Company has expensed all costs when incurred. |
| Government subsidies | Government
subsidies Government
subsidies mainly represent amounts granted by local government authorities as an incentive for companies to promote development
of the local technology industry. The Company receives government subsidies related to government sponsored projects, and records
such government subsidies as a liability when it is received. The Company records government subsidies as other income when there
is no further performance obligation. |
| Advertising expenditures | Advertising
expenditures Advertising
expenditures are expensed as incurred and such expenses were minimal for all the periods presented. Advertising expenditures
have been included as part of selling and marketing expenses. |
| Operating leases | Operating
leases A
lease for which substantially all the benefits and risks incidental to ownership remain with the lessor is classified by the lessee
as an operating lease. All leases of the Company are currently classified as operating leases. The Company records the total expenses
on a straight-line basis over the lease term. |
| Employee defined contribution plan | Employee
defined contribution plan Full
time employees of the Company in the PRC participate in a government mandated multi-employer defined contribution plan pursuant
to which certain pension benefits, medical care, unemployment insurance, employee housing fund and other welfare benefits are
provided to employees. Chinese labor regulations require that the Company make contributions to the government for these benefits
based on a certain percentage of the employee's salaries. The Company has no legal obligation for the benefits beyond the
contributions. The total amount was expensed as incurred. |
| Income taxes | Income
taxes The
Company accounts for current income taxes in accordance with the laws of the relevant tax authorities. Deferred income taxes are
recognized when temporary differences exist between the tax bases of assets and liabilities and their reported amounts in the
consolidated financial statements. Deferred tax assets and liabilities are measured using enacted tax rates expected to apply
to taxable income in the years in which those temporary differences are expected to be recovered or settled. The effect on deferred
tax assets and liabilities of a change in tax rates is recognized in income in the period including the enactment date. Valuation
allowances are established to reduce deferred tax assets to the amount expected to be realized, when it is more-likely-than-not
that some portion, or all, of the deferred tax assets will not be realized. The
Company accounts for uncertainties in income taxes in accordance with ASC 740. An uncertain tax position is recognized as a benefit
only if it is "more likely than not" that the tax position would be sustained in a tax examination. The amount recognized
is the largest amount of tax benefit that is greater than 50% likely of being realized on examination. For tax positions not meeting
the "more likely than not" test, no tax benefit is recorded. Penalties and interest incurred related to underpayment
of income tax are classified as income tax expense in the consolidated statements of comprehensive income (loss) in the period
incurred. No significant penalties or interest relating to income taxes have been incurred during the years ended June 30, 2019,
2018 and 2017. All of the tax returns of the Company's subsidiaries in China remain subject to examination by the tax authorities
for five years from the date of filing through year 2023. |
| Warrants | Warrants
The Company issued warrants to certain
consultants and underwriters in May 2018 in connection with the closing of the IPO. The warrants carry a term of five years expiring
in May 2023 and are exercisable during the five-year period. The warrants are classified as equity contracts and measured at the
grant date fair value. Subsequent changes in fair value are not recognized as long as the contract continues to be classified
in equity. The Company, with the assistance of an independent third party valuation firm, used the Black-Scholes pricing model
to estimate the fair value of warrants. The determination of estimated fair value of warrants on the grant date is mainly affected
by the Company's stock price as well as assumptions regarding a number of subjective variables. These variables include
the Company's expected stock price volatility over the expected term of the awards, a risk-free interest rate and any expected
dividends. |
| Share-based payment | Share-based payment Share awards issued to employees and directors, including employee stock option plans ("ESOPs")
and restricted share units ("RSUs") are measured at fair value at the grant date. The Company, with the assistance
of an independent third party valuation firm, determined the fair value of the share options granted to employees. The Company
uses the binomial lattice model to estimate the fair value of ESOPs, and uses the closing stock price at the grant date to measure
the fair value of RSUs. The Company recognizes compensation expenses, net of forfeitures, using the accelerated method over the
requisite service periods. Forfeitures are estimated at the time of grant
and revised in subsequent periods if actual forfeitures differ from those estimates. The Company uses historical data to estimate
pre-vesting ESOPs and RSUs' forfeitures and records share-based compensation expense only for those awards that are expected
to vest. |
| Earnings (loss) per share | Earnings (loss) per share Basic earnings (loss) per share is computed
using the weighted average number of common shares outstanding during the period. Diluted earnings (loss) per share is computed
using the weighted average number of common shares and potential common shares outstanding during the period, which may include
RSUs, options and warrants. The computation of diluted earnings (loss) per share does not assume conversion, exercise, or contingent
issuance of securities that would have an anti-dilutive effect (i.e. an increase in earnings per share amounts) on earnings (loss)
per share. |
| Foreign currency | Foreign
currency The
functional currency of the Company is US$. The functional currencies of the Company's subsidiaries are the local currency
of the country in which the subsidiary operates, which is determined based on ASC topic 830 ("ASC 830"), Foreign
Currency Matters Transactions
denominated in foreign currencies are re-measured into the functional currency at the exchange rates quoted by the People's
Bank of China (the "PBOC") prevailing on the transaction dates. Monetary assets and liabilities denominated in foreign
currencies are re-measured at the exchange rates prevailing at the balance sheet date. Non-monetary items that are measured in
terms of historical costs in foreign currency are re-measured using the exchange rates at the dates of the initial transactions.
Exchange gains and losses are included in the consolidated statements of comprehensive income (loss). The Company's financial statements are
reported using US$. The financial statements of the Company's subsidiaries whose functional currencies are not US$ are translated
from the functional currency to the reporting currency. Assets and liabilities are translated at the exchange rates at the balance
sheet dates, equity accounts are translated at historical exchange rates and revenues, expenses, gains and losses are translated
using the average rate for the year. Translation adjustments are reported as accumulated comprehensive income (loss) and are shown
as a separate component of other comprehensive income (loss) in the consolidated statements of comprehensive income (loss). |
| Fair value of financial instruments | Fair
value of financial instruments The
Company applies ASC 820, Fair Value Measurements and Disclosures ASC
820 establishes a three-tier fair value hierarchy, which prioritizes the inputs used in measuring fair value as follows: Level
1—Observable inputs that reflect quoted prices (unadjusted) for identical assets or liabilities in active markets. Level
2—Includes other inputs that are directly or indirectly observable in the marketplace. Level
3—Unobservable inputs which are supported by little or no market activity. ASC
820 describes three main approaches to measuring the fair value of assets and liabilities: (1) market approach; (2) income approach;
and (3) cost approach. The market approach uses prices and other relevant information generated from market transactions involving
identical or comparable assets or liabilities. The income approach uses valuation techniques to convert future amounts to a single
present value amount. The measurement is based on the value indicated by current market expectations about those future amounts.
The cost approach is based on the amount that would currently be required to replace an asset. Financial instruments of the Company primarily consist of cash and cash equivalents, short-term investments,
accounts receivable, amounts due from underwriters on the over-allotment, escrow receivable, amounts due from related parties,
cost method investments, accounts payable and other current liabilities, short-term bank loans, and amounts due to related parties.
The carrying amounts of these financial instruments, except for cost method investments approximate their fair values because of
their generally short maturities. The fair value of the Company's trading debt securities is measured using the income approach, based
on quoted market interest rates of similar instruments and other significant inputs derived from or corroborated by observable
market data. The Company did not disclose the fair value of its cost method investments since the fair value cannot be determined
without undue cost and effort.
Fair Value Measurements as of June 30, 2019
Quoted Price in Significant Unobservable
RMB RMB RMB
Fair value measurements
Recurring
Short-term investments - - -
Trading debt securities $ - $ 1,791,697 $ - The Company had no financial assets and liabilities measured and
recorded at fair value on a non-recurring basis as of June 30, 2019, 2018 and 2017. |
| Comprehensive income (loss) | Comprehensive
income (loss) Comprehensive income (loss) is defined as
the decrease in equity of the Company during a period from transactions and other events and circumstances excluding transactions
resulting from investments by owners and distributions to owners. Accumulated other comprehensive income (loss) of the Company
includes foreign currency translation adjustments related to the Company's subsidiaries whose functional currency is not
US$. |
| Statements of cash flows | Statements of cash flows In accordance with ASC 230, Statement
of Cash Flows |
| Concentrations and risks | Concentrations
and risks - Foreign
currency risk A
majority of the Company's expense transactions are denominated in Renminbi ("RMB") and a significant portion
of the Company and its subsidiaries' assets and liabilities are denominated in RMB. RMB is not freely convertible into foreign
currencies. In the PRC, certain foreign exchange transactions are required by law to be transacted only by authorized financial
institutions at exchange rates set by the People's Bank of China ("PBOC"). Remittances in currencies other than
RMB by the Company in China must be processed through the PBOC or other China foreign exchange regulatory bodies which require
certain supporting documentation in order to affect the remittance. The functional currency for the
Company's PRC subsidiaries is the RMB, and the financial statements are presented in U.S. dollars. The RMB depreciated by
2.0% in fiscal 2017, appreciated by 2.4% in fiscal 2018 and depreciated by 3.8% in fiscal 2019, respectively. It is difficult
to predict how market forces or PRC or U.S. government policy may impact the exchange rate between the RMB and the U.S. dollar
in the future. The change in the value of the RMB relative to the U.S. dollar may affect the Company's financial results
reported in the U.S. dollar terms without giving effect to any underlying changes in its business or results of operations. Currently,
majority of the Company's assets, liabilities, revenues and costs are denominated in RMB. To
the extent that the Company needs to convert U.S. dollars into RMB for capital expenditures and working capital and other business
purposes, appreciation of RMB against U.S. dollar would have an adverse effect on the RMB amount the Company would receive from
the conversion. Conversely, if the Company decides to convert RMB into U.S. dollar for the purpose of making payments for dividends,
strategic acquisition or investments or other business purposes, appreciation of U.S. dollar against RMB would have a negative
effect on the U.S. dollar amount available to the Company. Financial instruments that potentially subject
the Company to significant concentration of credit risk consist primarily of cash and cash equivalents, short-term investments,
account receivables, amounts due from underwriters on the over-allotment, escrow receivable, note receivables, amounts due from
related parties and cost method investments. As of June 30, 2019 and 2018, $1,891,584 and $4,012,088 of the Company's cash
and cash equivalents was on deposit at financial institutions in the PRC where there currently is no rule or regulation requiring
such financial institutions to maintain insurance to cover bank deposits in the event of bank failure. As of June 30, 2018, the
Company had $81,644, $4,005, $5,568,360 and $76,789 of cash and cash equivalents on deposit at financial institutions in Singapore,
Australia, Hong Kong and Taiwan, respectively. As of June 30, 2019, the Company had $450,388, $25,444 and $4,233,919 of cash and
cash equivalents on deposit at financial institutions in Singapore, Australia and Hong Kong, respectively. The Company continues
to monitor the financial strength of the financial institutions. There has been no recent history of default in relation to these
financial institutions. The
Company conducts credit evaluations on its customers and generally does not require collateral or other security from such customers.
The Company periodically evaluates the creditworthiness of the existing customers in determining an allowance for doubtful accounts
primarily based upon the age of the receivables and factors surrounding the credit risk of specific customers. - Significant
customers For
the years ended June 30, 2019, 2018 and 2017, one customer with its affiliates accounted for 25.7%, 30.8% and 38.6% of the Company's
total revenues, respectively. For the years ended June 30, 2019 and 2018, one customer and its affiliates accounted for 30.0% and
35.9% of the Company's total accounts receivable balance, respectively. |
| Risks and uncertainties | Risks
and uncertainties The
significant operations of the Company are located in the PRC. Accordingly, the Company's business, financial condition,
and results of operations may be influenced by political, economic, and legal environments in the PRC, as well as by the general
state of the PRC economy. The Company's results may be adversely affected by changes in the political, regulatory and social
conditions in the PRC. Although the Company has not experienced losses from these situations and believes that it is in compliance
with existing laws and regulations including its organization and structure disclosed in Note 1, may not be indicative of future
results. |
| Recent accounting pronouncements | Recent
accounting pronouncements The
Jumpstart Our Business Startups Act ("JOBS Act") provides that an emerging growth company ("EGC") as defined
therein can take advantage of an extended transition period for complying with new or revised accounting standards. This allows
an EGC to delay adoption of certain accounting standards until those standards would otherwise apply to private companies. The
Company has adopted the extended transition period. In
May 2014, the Financial Accounting Standard Board, or FASB, issued Accounting Standards Update, or ASU, 2014-09, Revenue from
Contracts with Customers (Topic 606) The Company will adopt the new revenue standards using the modified retrospective approach, effective
July 1, 2019. The cumulative effect of initially applying the new revenue standards will be recognized on the day of initial application
and prior periods will not be retrospectively adjusted. Management's preliminary assessment identified an area impacted by
the new revenue standards as follows: Revenues from the solution development service in the fixed-price customized solution contracts
will be recognized at a point of time when the performance obligations are satisfied upon the completion of services due to the
Company's lack of enforceable rights to payments before service acceptance. This is changed from using contract accounting
under the current revenue standard. The Company is in the process of finalizing its adoption assessment including the quantification
of the adoption impact on July 1, 2019. The Company is also in the process of implementing the appropriate changes to its business
processes and controls to support recognition and disclosures under the new revenue standards. In January 2016, the FASB issued ASU No. 2016-01,
Financial Instruments—Overall (Subtopic 825-10) In
February 2016, the FASB issued ASU No. 2016-02, Leases Leases Targeted Improvements Leases In June 2016, the FASB issued ASU No. 2016-13,
Financial Instruments—Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments In August 2016, the FASB issued ASU No. 2016-15,
Statement of Cash Flows (Topic 230): Classification of Certain Cash Receipts and Cash Payments In
October 2016, the FASB issued ASU No. 2016-16, Income Taxes (Topic 740): Intra-Entity Transfers of Assets Other Than Inventory.
Topic 740, Income Taxes In January 2017, the FASB issued ASU 2017-01,
Business Combinations (Topic 805): Clarifying the Definition of a Business In January 2017, the FASB issued ASU 2017-04,
Simplifying the Test for Goodwill Impairment In February 2017, the FASB issued ASU 2017-05
("ASU 2017-05"), Other Income-Gains and Losses from the Derecognition of Nonfinancial Assets The Company does not plan to early adopt the standard.
The Company does not expect the adoption will have a material impact on the Company's consolidated financial statements. In
August 2018, the FASB issued ASU 2018-13, Fair Value Measurement (Topic 820) – Disclosure Framework-Changes to the Disclosure
Requirements for Fair Value Measurement ("ASU 2018-13") Earlier
application is permitted. The
Company does not believe other recently issued but not yet effective accounting statements, if recently adopted, would have a
material effect on the Company's consolidated balance sheets, statements of comprehensive income (loss) and statements of
cash flows. |
