Rosetta Stone 2015 Annual Report Download - page 74

Table of Contents



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
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



Prepaid expenses and other current assets
$ 5,038
$ (196)
$ 4,842
Total current assets
$ 164,279
$ (196)
$ 164,083
Other assets
$ 1,525
$ (35)
$ 1,490
Total assets
$ 288,404
$ (231)
$ 288,173
Other current liabilities
$ 56,157
$ (2,899)
$ 53,258
Total current liabilities
$ 186,009
$ (2,899)
$ 183,110
Deferred income taxes
$ 1,554
$ 2,668
$ 4,222
Total liabilities
$ 224,959
$ (231)
$ 224,728
Total liabilities and stockholders' equity
$ 288,404
$ (231)
$ 288,173
In April 2014, the FASB issued ASU No. 2014-08, 
 ("ASU 2014-08"), which amends the definition of a discontinued
operation and requires entities to provide additional disclosures about discontinued operations as well as disposal transactions that do not meet the
discontinued operations criteria. The new guidance changes the definition of a discontinued operation and requires discontinued operations treatment for
disposals of a component or group of components that represents a strategic shift that has or will have a major impact on an entity’s operations or financial
results. ASU 2014-08 is effective prospectively for all disposals (except disposals classified as held for sale before the adoption date) or components initially
classified as held for sale in periods beginning on or after December 15, 2014; earlier adoption is permitted. The Company adopted ASU 2014-08 effective
January 1, 2015 and adoption did not have a material impact on the Company's consolidated financial condition, results of operations or cash flows.
The following ASUs were recently issued but have not yet been adopted by the Company:
In February 2016, the FASB issued ASU No. 2016-02,  ("ASU 2016-02"). Under ASU 2016-02, entities will be required to recognize a
lease liability and a right-of-use asset for all leases. Lessor accounting is largely unchanged. ASU 2016-02 is effective for public entities in fiscal years
beginning after December 15, 2018, including interim periods within those fiscal years. Early adoption is permitted. The Company is in the process of
evaluating the impact of the new guidance on the Company's consolidated financial statements and disclosures.
In January 2016, the FASB issued ASU No. 2016-01, 
 ("ASU 2016-01"). ASU 2016-01 changes how entities measure certain equity investments and present changes in the fair
value of financial liabilities measured under the fair value option that are attributable to their own credit. Under the new guidance, entities will be required to
measure equity investments that do not result in consolidation and are not accounted for under the equity method at fair value and recognize any changes in
fair value in net income unless the investments qualify for the new practicability exception. The accounting for other financial instruments, such as loans and
investments in debt securities is largely unchanged. ASU 2016-01 is effective for public entities in fiscal years beginning after December 15, 2017, including
interim periods within those fiscal years. The Company does not believe that the adoption of this guidance will have a material impact on the Company's
consolidated financial statements and disclosures.
In April 2015, the Financial Accounting Standards Board ("FASB") issued ASU No. 2015-05, 
 ("ASU 2015-05"). ASU 2015-05 provides guidance regarding
whether a cloud computing arrangement includes a software license. If a cloud computing arrangement includes a software license, then the entity should
account for the software license element of the arrangement consistent with the acquisition of other software licenses. If a cloud computing arrangement does
not include a software license, the entity should account for the arrangement as a service contract. ASU 2015-05 does not change the accounting for service
contracts. ASU 2015-05 is effective for fiscal years, including interim periods within those fiscal years, beginning after December 15, 2015. Early adoption is
permitted. The Company does not expect to early adopt the guidance and does not believe that the adoption of this guidance will have a material impact on
the Company's consolidated financial statements and disclosures.
F-18