In the FASB issued guidance creating Accounting Standards Codification (“ASC”) Section . The new section will replace Section “Revenue Recognition” and creates modifications to various other revenue accounting standards for specialized transactions and industries. The section is intended to conform revenue accounting principles with a concurrently issued International Financial Reporting Standards with previously differing treatment between United States practice and those of much of the rest of the world, as well as, to enhance disclosures related to disaggregated revenue information. The updated guidance is effective for annual reporting periods beginning after and interim periods within that reporting period. Early application is permitted only as of annual reporting periods beginning after including interim periods within that reporting period. Although the Company has completed a full impact assessment of this guidance, we do believe it will have a material impact on the reported net sales amounts.

 

In the FASB issued ASU -  which applies to all inventory except inventory that is measured using last-in, -out (“LIFO”) or the retail inventory method. Inventory measured using -in, -out (“FIFO”) or average cost is covered by the new amendments. Inventory within the scope of the new guidance should be measured at the lower of cost and net realizable value. Net realizable value is the estimated selling prices in the ordinary course of business, less reasonably predictable costs of completion, disposal, and transportation. Subsequent measurement is unchanged for inventory measured using LIFO or the retail inventory method. The amendments will take effect for public business entities for fiscal years beginning after including interim periods within those fiscal years. The new guidance should be applied prospectively, and earlier application is permitted as of the beginning of an interim or annual reporting period. Although the Company has completed a full impact assessment of this guidance, we do believe it will have a material impact on reported inventory amounts.

 

In the FASB issued ASU - , which requires lessees to present right-of-use assets and lease liabilities on the balance sheet for all leases with terms longer than months. The guidance is to be applied using a modified retrospective approach at the beginning of the earliest comparative period in the financial statements and is effective for fiscal years beginning after including interim periods within those fiscal years. Early adoption is permitted. The Company is evaluating the impact the adoption of this ASU will have on our financial statements.