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Note 20 - Revision of Previously Issued Consolidated Financial Statements
 12 Months Ended
Apr. 30, 2021
Notes to Financial Statements  
Error Correction [Text Block]
Note
20
- Revision of Previously Issued Consolidated Financial Statements:
 
As described in Note
1,
the Company has determined that the previously issued financial statements for the years ended
April 30, 2020
and
April 30, 2019
did
not
include the adoption of Accounting Standards Update
No.
2016
-
01
(“ASU
2016
-
01”
) as is required by U.S. generally accepted accounting principles (“GAAP”). The Company has corrected this immaterial error by revising the financial statements as of and for each of the years ended
April 30, 2020
and
April 30, 2019
by including the adoption of ASU
2016
-
01
as of the beginning of the fiscal year ended
April 30, 2019.   
 
As of the adoption date, the Company held equity securities with a fair value of approximately
$9,379,000,
which included a net unrealized gain of
$994,000,
and an associated deferred tax liability of
$209,000.
The Company has recorded a cumulative effect adjustment of
$785,000
to decrease Accumulated Other Comprehensive Income with a corresponding increase to Retained Earnings for the amount of the unrealized gain, net of tax, as of the beginning of fiscal year
2019,
which resulted in
no
change to Total Shareholders' Equity. 
 
Other than the aforementioned cumulative effect adjustment, the principal impact of ASU
2016
-
01
to the Company's financial statements is the recognition of changes in the fair values of equity securities in the Statements of Income, instead of the Statements of Comprehensive Income, as they were reported prior to the adoption of ASU
2016
-
01.
A summary of the revisions that have been made to the Company's financial statements is as follows: 
 
   
Fiscal Years Ended April 30,
  
           
2020
                    
2019
          
($ in thousands, except per share amounts)
  
Originally
Reported
    
Adjustment
    
Corrected
    
Originally
Reported
    
Adjustment
    
Corrected
  
                                                 
Consolidated Balance Sheets
    
 
 
 
  
 
 
 
  
 
 
 
  
 
 
 
  
 
 
 
Current Assets
  
 
 
 
  
 
 
 
  
 
 
 
  
 
 
 
  
 
 
 
  
 
 
 
Securities available-for-sale
   $
29,204
     $
(29,204
 )   $
-
     $
21,828
     $
(21,828
 )   $
-
  
Equity securities
   $
-
     $
14,125
     $
14,125
     $
-
     $
10,622
     $
10,622
  
Available-for-sale Fixed Income Securities
   $
-
     $
15,079
     $
15,079
     $
-
     $
11,206
     $
11,206
  
                                                 
Shareholders' Equity
  
 
 
 
  
 
 
 
  
 
 
 
  
 
 
 
  
 
 
 
  
 
 
 
Retained earnings
   $
56,450
     $
924
     $
57,374
     $
48,598
     $
1,644
     $
50,242
  
Accumulated Other Comprehensive Income, net of tax
   $
1,055
     $
(924
 )   $
131
     $
1,678
     $
(1,644
 )   $
34
  
Total shareholders' equity
   $
53,539
     $
-
     $
53,539
     $
47,524
     $
-
     $
47,524
  
                                                 
Consolidated Statements of Income
    
 
 
 
  
 
 
 
  
 
 
 
  
 
 
 
  
 
 
 
Income/(loss) from securities transactions, net
   $
44
     $
(833
 )   $
(789
 )   $
504
     $
1,087
     $
1,591
  
Income before income taxes
   $
21,484
     $
(833
 )   $
20,651
     $
15,226
     $
1,087
     $
16,313
  
Income tax provision
   $
5,821
     $
(113
 )   $
5,708
     $
4,076
     $
228
     $
4,304
  
Net income
   $
15,663
     $
(720
 )   $
14,943
     $
11,150
     $
859
     $
12,009
  
Earnings per share
   $
1.62
     $
(0.07
 )   $
1.55
     $
1.15
     $
0.09
     $
1.24
  
                                                 
Consolidated Statements of Comprehensive Income
    
 
 
 
  
 
 
 
  
 
 
 
  
 
 
 
Net income
   $
15,663
     $
(720
 )   $
14,943
     $
11,150
     $
859
     $
12,009
  
Change in unrealized gains on securities, net of taxes
   $
(623
 )   $
720
     $
97
     $
895
     $
(859
 )   $
36
  
Other comprehensive income/(loss)
   $
(623
 )   $
720
     $
97
     $
895
     $
(859
 )   $
36
  
Comprehensive income
   $
15,040
     $
-
     $
15,040
     $
12,045
     $
-
     $
12,045
  
                                                 
Consolidated Statements of Cash Flows
    
 
 
 
  
 
 
 
  
 
 
 
  
 
 
 
  
 
 
 
Net income
   $
15,663
     $
(720
 )   $
14,943
     $
11,150
     $
859
     $
12,009
  
Investment (gains)/losses
   $
581
     $
833
     $
1,414
     $
-
     $
(1,087
 )   $
(1,087
 )
Deferred income taxes
   $
267
     $
(113
 )   $
154
     $
512
     $
228
     $
740
  
Total adjustments
   $
(1,918
 )   $
720
     $
(1,198
 )   $
344
     $
(859
 )   $
(515
 )
Net cash provided by operating activities
   $
13,745
     $
-
     $
13,745
     $
11,494
     $
-
     $
11,494
  
                                                 
Consolidated Statements of Changes in Shareholders
'
Equity (Total)
    
 
 
 
  
 
 
 
  
 
 
 
Net income
   $
15,663
     $
(720
 )   $
14,943
     $
11,150
     $
859
     $
12,009
  
Change in unrealized gains on securities, net of taxes
   $
(623
 )   $
720
     $
97
     $
895
     $
(859
 )   $
36
  
                                                 
Cumulative effect of adoption of ASU 2016-01*
   $
-
     $
-
     $
-
     $
-
     $
-
     $
-
  
                                                 
Balance as of April 30
   $
53,539
     $
-
     $
53,539
     $
47,524
     $
-
     $
47,524
  
 
*As discussed above, the cumulative effect adjustment of
$785,000
from Accumulated Other Comprehensive Income to Retained Earnings results in a net
zero
effect to Total Shareholders' Equity.