Quarterly report pursuant to Section 13 or 15(d)

Note 1 - Basis of Presentation

Note 1 - Basis of Presentation
6 Months Ended
Mar. 31, 2019
Notes to Financial Statements  
Basis of Accounting [Text Block]
Basis of Presentation
The accompanying (a) condensed balance sheet as of
September 30, 2018,
which has been derived from audited financial statements, and (b) unaudited interim condensed financial statements as of and for the
months ended
March 31, 2019
have been prepared by Clearfield, Inc. (the “Company”) in accordance with accounting principles generally accepted in the United States of America for interim financial information, pursuant to the rules and regulations of the Securities and Exchange Commission. Pursuant to these rules and regulations, certain financial information and footnote disclosures normally included in the financial statements have been condensed or omitted. However, in the opinion of management, the financial statements include all adjustments, consisting of normal recurring accruals, necessary for a fair presentation of the financial position and results of operations and cash flows of the interim periods presented.
Operating results for the interim periods presented are
necessarily indicative of results to be expected for the full year or for any other interim period, due to variability in customer purchasing patterns and seasonal, operating and other factors.
These condensed financial statements should be read in conjunction with the financial statements and notes thereto included in the Company’s Annual Report on Form
-K for the year ended
September 30, 2018.
In preparation of the Company’s financial statements, management is required to make estimates and assumptions that affect reported amounts of assets and liabilities and related revenues and expenses during the reporting periods. As future events and their effects cannot be determined with precision, actual results could differ significantly from these estimates.
Recently Adopted Accounting Pronouncements
October 1, 2018,
we adopted the Financial Accounting Standards Board (“FASB”) Accounting Standards Update (“ASU”)
Revenue from Contracts with Customers (Topic
, and ASU
Revenue from Contracts with Customers (Topic
): Deferral of Effective Date,
which deferred the effective date of ASU
year. ASU
supersedes the revenue recognition requirements in ASC
Revenue Recognition,
and is based on the principle that revenue is recognized to depict the transfer of goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services. It also requires additional disclosure about the nature, amount, timing, and uncertainty of revenue, cash flows arising from customer contracts, including significant judgments and changes in judgments, and assets recognized from costs incurred to obtain or fulfill a contract. The adoption of ASU
using the modified retrospective approach, had
material impact on our results of operations, cash flows, or financial position. Revenue continues to be recognized at a point in time for our product sales when products are delivered to or picked up by the customer and revenue for shipping and handling charges continues to be recognized when products are delivered to or picked up by the customer. Additional information and disclosures required by this new standard are contained in Note