Note 1 - Basis of Presentation
|3 Months Ended|
Dec. 31, 2020
|Notes to Financial Statements|
|Basis of Accounting [Text Block]||
1.Basis of Presentation
The accompanying (a) condensed balance sheet as ofOperating results for the interim periods presented are
September 30, 2020,which has been derived from audited financial statements, and (b) unaudited interim condensed financial statements as of and for the
December 31, 2020have 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, results of operations and cash flows of the interim periods presented.
notnecessarily 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
10-K for the year ended
September 30, 2020.
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.
New Accounting Pronouncements
January 2017,the FASB issued ASU
04,Intangibles-Goodwill, which offers amended guidance to simplify the accounting for goodwill impairment by removing Step
2of the goodwill impairment test. A goodwill impairment will now be measured as the amount by which a reporting unit's carrying value exceeds its fair value, limited to the amount of goodwill allocated to that reporting unit. This guidance is to be applied on a prospective basis effective for the Company's interim and annual periods beginning after
December 15, 2019.The new guidance is effective for the Company beginning in the
firstquarter of fiscal
2021.The adoption of ASU
nothave a material impact on the Company's financial statements.
June 2016,the FASB issued ASU
13,Measurement of Credit Losses on Financial Instruments. In
November 2018,the FASB issued update ASU
19that clarifies the scope of the standard in the amendments in ASU
13.This guidance introduces a new model for recognizing credit losses on financial instruments based on an estimate of current expected credit losses. Financial instruments impacted include accounts receivable, trade receivables, other financial assets measured at amortized cost and other off-balance sheet credit exposures. The new guidance is effective for the Company beginning in the
firstquarter of fiscal
2023,with early adoption permitted. The Company is evaluating the impact of the adoption of ASU
13on our financial statements.
The entire disclosure for the basis of accounting, or basis of presentation, used to prepare the financial statements (for example, US Generally Accepted Accounting Principles, Other Comprehensive Basis of Accounting, IFRS).
Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef