XML 72 R23.htm IDEA: XBRL DOCUMENT v3.20.1
Significant Accounting Policies (Policies)
 3 Months Ended
Mar. 31, 2020
Accounting Policies [Abstract]  
Consolidation, Policy [Policy Text Block]
Consolidation Policy
 
The financial statements of Boston Omaha Corporation include the accounts of the Company and its wholly-owned and majority-owned subsidiaries, as follows:
 
Link Media Holdings, LLC which we refer to as “LMH”
Link Media Alabama, LLC which we refer to as “LMA”
Link Media Florida, LLC which we refer to as “LMF”
Link Media Wisconsin, LLC which we refer to as “LMW”
Link Media Georgia, LLC which we refer to as “LMG”
Link Media Midwest, LLC which we refer to as “LMM”
Link Media Omaha, LLC which we refer to as “LMO”
Link Media Properties, LLC which we refer to as “LMP”
Link Media Southeast, LLC which we refer to as “LMSE”
Link Media Services, LLC which we refer to as “LMS”
General Indemnity Group, LLC which we refer to as “GIG”
The Warnock Agency, Inc. which we refer to as “Warnock”
United Casualty and Surety Insurance Company which we refer to as “UCS”
Surety Support Services, Inc. which we refer to as “SSS”
South Coast Surety Insurance Services, LLC which we refer to as “SCS”
Boston Omaha Investments, LLC which we refer to as “BOIC”
Boston Omaha Asset Management, LLC which we refer to as “BOAM”
BOC DFH, LLC which we refer to as “BOC DFH”
Fiber is Fast, LLC which we refer to as "BOC FIF"
FIF AireBeam LLC, which we refer to as “AireBeam”
 
All significant intercompany profits, losses, transactions and balances have been eliminated in consolidation.
Revenue from Contract with Customer [Policy Text Block]
Revenue
s
 
A majority of our billboard contracts had been accounted for under Financial Accounting Standards Board, which we refer to as the “FASB,” Accounting Standards Codification, which we refer to as “ASC,”
840.
Contracts which began prior to
January 1, 2019
and are accounted for under ASC
840
will continue to be accounted for as a lease until the contract ends or is modified. Contracts beginning or modified on or after
January 1, 2019
which do
not
meet the criteria of a lease under ASC
842
are accounted for under ASC
606,
Revenue
from Contracts with Customers
. The majority of our advertising space contracts do
not
meet the definition of a lease under ASC
842.
 
Revenue Recognition
 
Billboard Rentals
 
We generate revenue from outdoor advertising through the leasing of advertising space on billboards. The terms of the operating leases generally range from less than
one
month to
three
years and are generally billed monthly. Revenue for advertising space rental is recognized on a straight-line basis over the term of the contract. Advertising revenue is reported net of agency commissions. Agency commissions are calculated based on a stated percentage applied to gross billing revenue for operations. Payments received in advance of being earned are recorded as deferred revenue. Another component of billboard rentals consists of production services which include creating and printing advertising copy. Contract revenues for production services are accounted for under ASC
606.
Revenues are recognized at a point in time upon satisfaction of the contract, which is typically less than
one
week. 
 
Deferred Revenues
 
We record deferred revenues when cash payments are received in advance of being earned or when we have an unconditional right to consideration before satisfying our performance obligation. The term between invoicing and when a payment is due is
not
significant. For certain services we require payment before the product or services are delivered to the customer. The balance of deferred revenue is considered short-term and will be recognized in revenue within
twelve
months.
 
Premiums and Unearned Premium Reserves
 
Premiums written are recognized as revenues based on a pro-rata daily calculation over the respective terms of the policies in-force. The cost of reinsurance ceded is initially written as prepaid reinsurance premiums and is amortized over the reinsurance contract period in proportion to the amount of insurance protection provided. Premiums ceded are netted against premiums written.
 
Commissions
 
We generate revenue from commissions on surety bond sales through
third
party carriers and account for commissions under ASC
606.
Insurance commissions are earned from various insurance companies based upon our agency agreements with them. We arrange with various insurance companies for the provision of a surety bond for entities that require a surety bond. The insurance company sets the price of the bond. The contract with the insurance company is fulfilled when the bond is issued by the insurance agency on behalf of the insurance company. The insurance commissions are calculated based upon a stated percentage applied to the gross premiums on bonds. Commissions are recognized at a point in time, on a bond-by-bond basis as of the policy effective date and are generally nonrefundable.
 
Broadband Revenues
 
Broadband revenue is derived principally from internet services and is recognized on a straight-line basis over the term of the contract in the period the services are rendered.  Revenue received or receivable in advance of the delivery of services is included in deferred revenue.
New Accounting Pronouncements, Policy [Policy Text Block]
Recent Accounting Pronouncements
 
In
December 2019,
the FASB issued guidance which simplifies the accounting for income taxes by removing certain exceptions to the general principles and improves consistent application of GAAP for other areas by clarifying and amending existing guidance. This guidance is effective
January 1, 2021.
We are evaluating the effect of adopting this new accounting guidance but do
not
expect adoption will have a material impact on our disclosures.
 
In
January 2020,
the FASB issued ASU
No.
2020
-
01,
Clarifying the Interactions between Topic
321,
Investments—Equity Securities, Topic
323,
Investments—Equity Method and Joint Ventures, and Topic
815,
Derivatives and Hedging. This ASU clarifies that when accounting for certain equity securities, a company should consider observable transactions before applying or upon discontinuing the equity method of accounting for the purposes of applying the measurement alternative. This guidance is effective
January 1, 2021,
with early adoption permitted. We are evaluating the effect of adopting this new accounting guidance but do
not
expect adoption will have a material impact on our financial statements.