Note 3 - New Accounting Pronouncements
|6 Months Ended|
Apr. 30, 2019
|Notes to Financial Statements|
|New Accounting Pronouncements and Changes in Accounting Principles [Text Block]||
3.New Accounting Pronouncements
We have opted to take advantage of the extended transition period applicable to emerging growth companies pursuant to the Jumpstart Our Business Startups Act of
2012(the “JOBS Act”) for new accounting standards.
Recently issued accounting pronouncements
May 2014,the FASB issued ASU
Revenue from Contracts with Customers (ASC(“ASU
09”), which is a comprehensive new revenue recognition model.
09,a company will recognize revenue when it transfers promised goods or services to customers in an amount that reflects the consideration to which the company expects to be entitled in exchange for those goods and services. ASU
09is effective for entities other than public business entities in annual reporting periods beginning after
December 15, 2018and interim reporting periods within annual reporting periods beginning after
December 15, 2019and is to be adopted using either a full retrospective or modified retrospective transition method. The Company expects to adopt the guidance under the modified retrospective approach for the fiscal year ending
October 31, 2020.The Company is currently evaluating the impact of the pending adoption of the new standard on the consolidated financial statements.
January 2017,the FASB issued ASU
Business Combinations (ASC(“ASU
805): Clarifying the Definition of a Business
01”), which provides guidance to assist entities with evaluating whether transactions should be accounted for as acquisitions (or disposals) of assets or businesses. ASU
01requires entities to use a screen test to determine when an integrated set of assets and activities is
nota business or if the integrated set of assets and activities needs to be further evaluated against the framework. The new standard will be applied prospectively to any transactions occurring within the period of adoption and is effective for entities other than public business entities for fiscal years beginning after
December 15, 2018,and interim periods within fiscal years beginning after
December 15, 2019.Early adoption is permitted. The Company plans to adopt this standard in the
firstquarter of the fiscal year ending
October 31, 2020.
February 2016,the FASB issued ASU
02”), which is codified in ASC
842”) and supersedes current lease guidance in ASC
842requires a lessee to recognize a right-of-use asset and a corresponding lease liability for substantially all leases. The lease liability will be equal to the present value of the remaining lease payments while the right-of-use asset will be similarly calculated and then adjusted for initial direct costs. In addition, ASC
842expands the disclosure requirements to increase the transparency and comparability of the amount, timing and uncertainty of cash flows arising from leases. In
July 2018,the FASB issued ASU
Targeted Improvements, which allows entities to initially apply the new leases standard at the adoption date and recognize a cumulative-effect adjustment to the opening balance of retained earnings in the period of adoption.
The new standard is effective for emerging growth companies for fiscal years beginning after
December 15, 2019,and interim periods within fiscal years beginning after
December 15, 2020.The Company plans to adopt the new standard effective for the year ending
October 31, 2021.The Company is currently evaluating the impact of the pending adoption of the new standard on the consolidated financial statements.
The entire disclosure of changes in accounting principles, including adoption of new accounting pronouncements, that describes the new methods, amount and effects on financial statement line items.
Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef