Comfort Inn 2014 Annual Report Download - page 126

Table of Contents
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In April 2014, the FASB issued ASU No. 2014-08, "Presentation of Financial Statements and Property, Plant, and Equipment: Reporting Discontinued
Operations and Disclosures of Disposals of Components of an Entity" ("ASU 2014-08"). ASU 2014-08 changes the definition of a discontinued operation to
include only those disposals of components of an entity that represent a strategic shift that has (or will have) a major effect on an entity's operations and
financial results. ASU 2014-08 is effective for all disposals (or classifications as held for sale) of components of an entity that occur within annual periods
beginning on or after December 15, 2014, and interim periods within those years. The Company is currently evaluating what impact, if any, the adoption of
this ASU will have on the presentation of its consolidated financial statements.
In May 2014, the FASB issued ASU No. 2014-09, "Revenue From Contracts with Customers" ("ASU 2014-09"), which impacts virtually all aspects of an
entity's revenue recognition. ASU No. 2014-09 supersedes the revenue recognition requirements in Topic 605, Revenue Recognition, as well as most
industry-specific guidance, and significantly enhances comparability of revenue recognition practices across entities and industries by providing a
principles-based, comprehensive framework for addressing revenue recognition issues. In order for a provider of promised goods or services to recognize as
revenue the consideration that it expects to receive in exchange for the promised goods or services, the provider should apply the following five steps: (1)
identify the contract with a customer(s); (2) identify the performance obligations in the contract; (3) determine the transaction price; (4) allocate the
transaction price to the performance obligations in the contract; and (5) recognize revenue when (or as) the entity satisfies a performance obligation. ASU No.
2014-09 also specifies the accounting for some costs to obtain or fulfill a contract with a customer and provides enhanced disclosure requirements. ASU No.
2014-09 is effective for annual reporting periods beginning after December 15, 2016, including interim periods within that reporting period. The guidance
permits the retrospective or modified retrospective method when adopting ASU No. 2014-09 but early application is not permitted. The Company is still
assessing the impact that ASU No. 2014-09 will have on its financial statements and disclosures.
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On February 28, 2015, the Company's board of directors declared a quarterly cash dividend of $0.195 per share of common stock. The dividend is
payable on April 17, 2015 to shareholders of record on April 3, 2015.
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The Company changed its independent registered public accounting firm effective May 27, 2014 from PricewaterhouseCoopers LLP to Ernst & Young
LLP. Information regarding the change in the independent registered public accounting firm was disclosed in a Current Report on Form 8-K filed with the
SEC on June 2, 2014. There were no disagreements with PricewaterhouseCoopers LLP or any reportable events requiring disclosure under Item 304(b) of
Regulation S-K.
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Management’s Evaluation of Disclosure Controls and Procedures
The Company has a disclosure review committee whose membership includes the Chief Executive Officer ("CEO") and Chief Financial Officer ("CFO"),
among others. The disclosure review committee’s procedures are considered by the CEO and CFO in performing their evaluations of the Company’s
disclosure controls and procedures and in assessing the accuracy and completeness of the Company’s disclosures.
Our management, with the participation of our CEO and CFO have evaluated the effectiveness of our disclosure controls and procedures, as such term is
defined in Rule 13a-15(e) and 15d-15(e) under the Securities Exchange Act of 1934, as amended, (the “Exchange Act”), as of the end of the period covered
by this annual report as required by Rules 13a-15(b) or 15d-15(b) under the Exchange Act. Our management, including our CEO and CFO, does not expect
that our disclosure controls and procedures or our internal control over financial reporting will prevent all errors and all fraud. A control system, no matter
how well designed and operated, can provide only reasonable, not absolute, assurance that the control system’s objectives will be met.
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