XML 31 R20.htm IDEA: XBRL DOCUMENT v3.7.0.1
Significant Accounting Policies (Policies)
9 Months Ended
Jun. 30, 2017
Accounting Policies [Abstract]  
Basis of Accounting, Policy [Policy Text Block]
General
 
The Company’s unaudited condensed consolidated financial statements included herein have been prepared in accordance with the instructions to Form
10
-Q and Article
8
of Regulation S-
X
and the rules and regulations of the Securities and Exchange Commission (“SEC”). Certain information and footnote disclosures normally included in financial statements prepared in accordance with U.S. generally accepted accounting principles have been condensed or omitted pursuant to such rules and regulations. In management’s opinion, the accompanying statements reflect adjustments necessary to present fairly the financial position, results of operations, and cash flows for those periods indicated, and contain adequate disclosure to make the information presented
not
misleading. Adjustments included herein are of a normal, recurring nature unless otherwise disclosed in the footnotes. The condensed consolidated financial statements and notes thereto should be read in conjunction with the Company’s audited financial statements and notes thereto for the year ended
September 
30,
2016
included in the Company’s Annual Report on Form
10
-K, as filed with the SEC on
December 7, 2016.
The accompanying condensed balance sheet at
September 30, 2016
has been derived from the audited consolidated balance sheet at
September 30, 2016,
contained in the above referenced Form
10
-K. Results of operations for interim periods are
not
necessarily indicative of the results of operations for a full year.
Consolidation, Policy [Policy Text Block]
Principles of Consolidation
 
The Company has a currently inactive wholly owned subsidiary, LRAD International Corporation, which the Company formed to conduct international marketing, sales and distribution activities. The condensed consolidated financial statements include the accounts of this subsidiary after elimination of intercompany transactions and accounts.
Reclassification, Policy [Policy Text Block]
Reclassifications
 
Where necessary, the prior year’s information has been reclassified to conform to the current year presentation.
New Accounting Pronouncements, Policy [Policy Text Block]
In
March 2016,
the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”)
No.
2016
-
09,
Compensation – Stock Compensation (Topic
718
): Improvements to Employee Share-Based Payment Accounting
. This guidance changes how companies account for certain aspects of share-based payments to employees. Among other things, under the new guidance, companies will
no
longer record excess tax benefits and certain tax deficiencies in additional paid-in-capital (“APIC”), but will instead record such items as income tax expense or benefit in the income statement, and APIC pools will be eliminated. Companies will apply this guidance prospectively. Another component of the new guidance allows companies to make an accounting policy election for the impact of forfeitures on the recognition of expense for share-based payment awards, whereby forfeitures can be estimated, as required today, or recognized when they occur. If elected, the change to recognize forfeitures when they occur needs to be adopted using a modified retrospective approach. The new guidance will be effective for the Company in the fiscal year beginning
October 1, 2017.
Early adoption is permitted. The Company is currently evaluating the impact of this guidance, if any, on its financial statements and related disclosures.
 
In
February 2016,
the FASB issued ASU
2016
-
02,
Leases (Topic
842
)
, which issued new guidance related to leases that outlines a comprehensive lease accounting model and supersedes the current lease guidance. The new guidance requires lessees to recognize lease liabilities and corresponding right-of-use assets for all leases with lease terms of greater than
12
 months. It also changes the definition of a lease and expands the disclosure requirements of lease arrangements. The new guidance must be adopted using the modified retrospective approach and will be effective for the Company in the fiscal year beginning
October 1, 2019.
Early adoption is permitted. The Company is currently evaluating the impact of this guidance on its financial statements and related disclosures.
 
In
July 2015,
the FASB issued ASU
No.
2015
-
11,
Inventory (Topic
330
): Simplifying the Measurement of Inventory
. The guidance requires an entity to measure inventory at the lower of cost or net realizable value, which is the estimated selling prices in the ordinary course of business, less reasonably predictable costs of completion, disposal, and transportation, rather than the lower of cost or market in the previous guidance. This amendment applies to inventory that is measured using
first
-in,
first
-out (FIFO). This new guidance is effective for the Company in the fiscal year beginning
October 1, 2017.
A reporting entity should apply the amendments prospectively with earlier application permitted as of the beginning of an interim or annual reporting period. The Company is currently evaluating the impact of this guidance, if any, on its consolidated financial statements and related disclosures.
 
 
In
May 2014,
the FASB issued ASU
No.
2014
-
09,
Revenue from Contracts with Customers
(“ASU
2014
-
09”
), which requires an entity to recognize the amount of revenue to which it expects to be entitled for the transfer of promised goods or services to customers. ASU
2014
-
09
will replace most existing revenue recognition guidance in U.S. generally accepted accounting principles when it becomes effective.
Recently, FASB has issued guidance clarifying certain topics such as (i) gross versus net revenue reporting, (ii) identifying performance obligations and licensing and (iii) accounting for shipping and handling fees and costs and accounting for consideration given by a vendor to a customer.
The new guidance will be effective for the Company in the fiscal year beginning
October 1, 2018,
with an option to adopt the standard for the fiscal year beginning
October 1, 2017.
The Company is currently evaluating this standard and has
not
yet selected a transition method or the effective date on which it plans to adopt the standard, nor has it determined the effect of the standard on its financial statements and related disclosures.