SkyWest Airlines 2014 Annual Report Download - page 50

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Recent Accounting Pronouncements
In August 2014, the Financial Accounting Standards Board issued ASU No. 2014-15. This standard
provides guidance on determining when and how to disclose going-concern uncertainties in the financial
statements. The new standard requires management to perform interim and annual assessments of an
entity’s ability to continue as a going concern within one year of the date the financial statements are
issued. This ASU is effective for fiscal years, and interim periods within those years, beginning on or
after December 15, 2016, with early adoption permitted. We are evaluating the new guidance and plan
to provide additional information about its expected impact at a future date.
In June 2014, the Financial Accounting Standards Board (‘‘FASB’’) issued Accounting Standards
Update 2014-12, Accounting for Share-Based Payments When the Terms of an Award Provide That a
Performance Target Could Be Achieved After the Requisite Service Period (‘‘ASU 2014-12’’). The
FASB issued ASU 2014-12 to provide explicit guidance for share-based awards which allow for an
employee’s award to vest upon achievement of a performance condition met after completion of a
requisite service period regardless of whether the employee is rendering service on the date the
performance target is achieved. ASU 2014-12 provides that the performance target should not be
reflected in estimating the grant-date fair value of the award, but rather compensation cost should be
recognized in the period in which it becomes probable that the performance target will be achieved and
recognized prospectively over the remaining requisite service period. ASU 2014-12 is effective for fiscal
years and interim periods within those years beginning after December 15, 2015. We do not believe the
implementation of ASU 2014-12 will have a material impact on our consolidated financial statements.
In May 2014, the FASB issued ASU No. 2014-09, ‘‘Revenue from Contracts with Customers’’
(ASU No. 2014-09). Under ASU No. 2014-09, revenue is recognized at the time a good or service is
transferred to a customer for the amount of consideration received for that specific good or service.
ASU 2014-09 is effective for annual reporting periods beginning after December 15, 2016, including
interim reporting periods, and early adoption is not permitted. Entities may use a full retrospective
approach or report the cumulative effect as of the date of adoption. Our management is currently
evaluating the impact, the adoption of ASU No. 2014-09 will have on our consolidated financial
statements.
In April 2014, the FASB issued Accounting Standards Update 2014-08, Presentation of Financial
Statements (Topic 205) and Property, Plant, and Equipment (Topic 360): Reporting Discontinued
Operations and Disclosures of Disposals of Components of an Entity. The standard changes the
requirements for reporting discontinued operations in Subtopic 205-20. The standard is effective in the
first quarter of 2015. We do not believe the implementation of the standard will have a material impact
on our consolidated financial statements.
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