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Note 4 - New Accounting Pronouncements
 12 Months Ended
Dec. 31, 2020
Notes to Financial Statements  
Accounting Standards Update and Change in Accounting Principle [Text Block]
4
.
 
New Accounting Pronouncements
 
 
Recent Accounting Pronouncements
Not
Yet Adopted
 
Credit Loss
 
In
June 2016,
the FASB issued authoritative guidance to replace the incurred loss impairment methodology under current GAAP with a methodology that reflects expected credit losses and requires consideration of a broader range of reasonable and supportable information to inform credit loss estimates. For public entities, the guidance is effective for fiscal years beginning after
December 15, 2020,
and interim periods within those fiscal years, which for the Company would be the
first
quarter of fiscal
2021.
The Company does
not
expect a material impact on its consolidated financial statements upon adoption of this authoritative guidance.
 
Income Taxes
 
In
December 2019,
the FASB issued authoritative guidance that simplifies the accounting for income taxes as part of the overall initiative to reduce complexity in accounting standards. Amendments include removal of certain exceptions to the general principles of Accounting Standards Codification
740,
Income Taxes. The amendments also include simplification in several other areas, such as recognition of deferred tax assets on step-up in tax basis in goodwill and accounting for franchise tax that is partially based on income. For public entities, the guidance is effective for fiscal years beginning after
December 15, 2020,
and interim periods within those fiscal years, which for the Company would be the
first
quarter of fiscal
2021.
Early adoption is permitted in any interim or annual period, with any adjustments reflected as of the beginning of the fiscal year of adoption. The Company has decided
not
to early adopt this new authoritative guidance and is currently evaluating the impact of this authoritative guidance on its consolidated financial statements.
 
In
August 2020,
the FASB issued ASU
2020
-
06,
Accounting for Convertible Instruments and Contracts in an Entity's Own Equity. The ASU simplifies the accounting for convertible instruments by removing certain separation models in ASC
470
-
20,
Debt—Debt with Conversion and Other Options, for convertible instruments. The ASU updates the guidance on certain embedded conversion features that are
not
required to be accounted for as derivatives under Topic
815,
Derivatives and Hedging, or that do
not
result in substantial premiums accounted for as paid-in capital, such that those features are
no
longer required to be separated from the host contract. The convertible debt instruments will be accounted for as a single liability measured at amortized cost. This will also result in the interest expense recognized for convertible debt instruments to be typically closer to the coupon interest rate when applying the guidance in Topic
835,
Interest. Further, the ASU made amendments to the EPS guidance in Topic
260
for convertible instruments, the most significant impact of which is requiring the use of the if-converted method for diluted EPS calculation, and
no
longer allowing the net share settlement method. The ASU also made revisions to Topic
815
-
40,
which provides guidance on how an entity must determine whether a contract qualifies for a scope exception from derivative accounting. The amendments to Topic
815
-
40
change the scope of contracts that are recognized as assets or liabilities. The ASU is effective for interim and annual periods beginning after
December 15, 2021,
with early adoption permitted for periods beginning after
December 15, 2020.
Adoption of the ASU can either be on a modified retrospective or full retrospective basis.  The Company is still evaluating the impact of this accounting pronoucement.