XML 30 R19.htm IDEA: XBRL DOCUMENT v3.7.0.1
Significant Accounting Policies (Policies)
6 Months Ended
Jun. 30, 2017
Accounting Policies [Abstract]  
New Accounting Pronouncements, Policy [Policy Text Block]
New Accounting Standards
 
In
May 2014,
the
Financial Accounting Standards Board (FASB) issued Accounting Standards Update (ASU)
2014
-
09,
Revenue from Contracts with Customers
. This guidance is the culmination of the FASB’s joint project with the International Accounting Standards Board to clarify the principles for recognizing revenue. The core principal of the guidance is that an entity should recognize revenue to depict the transfer of promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services. The guidance provides a
five
-step process that entities should follow in order to achieve that core principal. ASU
2014
-
09,
as amended by ASU
2015
-
14,
Revenue from Contracts with Customers (Topic
606
): D
eferral of the Effective Date
, ASU
2016
-
08,
Revenue from Contracts with Customers (Topic
606
): Principal versus Agent Considerations
, ASU
2016
-
10,
Revenue from Contracts with Customers (Topic
606
): Identifying Performance Obligations and Licensin
g,
ASU
2016
-
12,
Revenue from Contracts with Customers (Topic
606
):
Narrow-
Scope Improvements and Practical Expedients
, and ASU
2016
-
20,
Technical Corrections and Improvements to Topic
606,
Revenue from Contracts with Customers
, become effective for the Company in
2018.
The guidance can be applied either on a full retrospective basis or on a modified retrospective basis in which the cumulative effect of initially applying the standard is recognized at the date of initial application. While the Company is continuing to assess all potential impacts the standard
may
have on its financial statements, it believes that the adoption will
not
have a significant impact on its revenue related to equipment and parts sales, which represent substantially all of the revenue for the Company. The Company is currently planning to adopt the standard using the full retrospective method.
 
In
February
2016,
the FASB issued ASU
2016
-
02,
Leases
. This guidance is being issued to increase transparency and comparability among organizations by requiring the recognition of lease assets and lease liabilities on the statement of financial position and by disclosing key information about leasing arrangements. The guidance should be applied using a modified retrospective approach and is effective for the Company in
2019,
with early adoption permitted. The Company is currently assessing the impact the adoption of this guidance will have on the Company’s results of operations and financial position.
 
In
August 2016,
the FASB issued ASU
2016
-
15,
Statement of Cash Flows: Classification of Certain Cash Receipts and Cash Payments
. This guidance is being issued to decrease diversity in practice in how certain cash receipts and cash payments are presented and classified in the statement of cash flows. This guidance should be applied on a retrospective basis and is effective for the Company in
2018,
with early adoption permitted. The Company does
not
believe that the adoption of this guidance will have a significant impact on the presentation of the statement of cash flows.
 
In
January 2017,
the FASB issued ASU
2017
-
04,
Intangibles – Goodwill and Other: Simplifying the Test for Goodwill Impairment
. This guidance is being issued to simplify the subsequent measurement of goodwill by eliminating Step
2
of the goodwill impairment test. Under the new guidance, the recognition of a goodwill impairment charge is calculated based on the amount by which the carrying amount exceeds the reporting unit’s fair value; however, the loss recognized should
not
exceed the total amount of goodwill allocated to that reporting unit. This guidance should be applied on a prospective basis and is effective for the Company in
2020.
Early adoption is permitted for goodwill impairment tests performed after
January 1, 2017.
The Company has early adopted this standard, which did
not
have a significant impact on its consolidated financial statements.
 
In the
first
quarter of
2017,
the Company adopted ASU
2016
-
09,
Compensation – Stock Compensation: Improvements to Employee Share-Based Payment Accounting
. The primary impact of adoption is the prospective recognition of excess tax benefits or deficiencies within the provision for income taxes on the condensed consolidated statement of comprehensive income rather than within additional paid-in capital on the condensed consolidated balance sheet. Further, the Company has elected to continue to estimate forfeitures expected to occur to determine the amount of stock compensation expense recognized each period. The Company also elected to apply the presentation requirements for cash flows related to excess tax benefits or deficiencies prospectively. The presentation requirements for cash flows related to employee taxes paid for withheld shares had
no
impact to any period presented on the condensed consolidated statements of cash flows as such cash flows have historically been presented as a financing activity. There were
no
cumulative effect adjustments made to equity as of the beginning of the fiscal period, as those provisions of ASU
2016
-
09
were
not
applicable or had
no
impact to the Company.
 
There are several other new accounting pronouncements issued by the FASB.
Each of these pronouncements, as applicable, has been or will be adopted by the Company. Management does
not
believe any of these other accounting pronouncements has had or will have a material impact on the Company’s consolidated financial statements.