XML 21 R11.htm IDEA: XBRL DOCUMENT v3.10.0.1
Recently Issued Accounting Pronouncements
9 Months Ended
Sep. 30, 2018
New Accounting Pronouncements and Changes in Accounting Principles [Abstract]  
Recently Issued Accounting Pronouncements

In February 2016, the FASB issued Accounting Standards Update (“ASU”) 2016-02, Leases, under which lessees will recognize most leases on the balance sheet. This will generally increase reported assets and liabilities. This ASU is effective for the Company’s annual and interim periods beginning January 1, 2019. The original guidance required application on a modified retrospective basis with the earliest period presented. In August 2018, the FASB issued ASU 2018-11, Targeted Improvements to ASC 842, which includes an option to not restate comparative periods in transition and elect to use the effective date of ASC 842, Leases, as the date of initial application of transition. Based on the effective date, this guidance will apply and the Company will adopt this ASU beginning on January 1, 2019 using the transition option provided under ASU 2018-11The Company has performed a review of the requirements of the new guidance and has identified which of its leases will be within the scope of ASU 2016-02.  The Company is working through an adoption plan which includes a review of lease contracts, applying the new standard to the lease contracts and comparing the results to our current accounting.  As part of this, we are assessing changes that might be necessary to processes, and internal controls to capture new data and address changes in financial reporting. Effective January 1, 2019, the Company will be revising its lease accounting policy disclosures to reflect the requirements of ASU 2016-02. The Company estimates the impact of the adoption will be an increase of approximately $450,000 to $500,000 to both assets and liabilities on the balance sheet, with no material net impact to the statement of operations. We also expect additional qualitative and quantitative disclosures will be required upon adoption.