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Table of Contents TELENAV, INC.
Notes to Consolidated Financial Statements—(Continued)
In June 2013, the Financial Accounting Standards Board, or FASB, ratified Emerging Issues Task Force, or EITF, Issue 13-C,
“Presentation of an Unrecognized Tax Benefit When a Net Operating Loss Carryforward, a Similar Tax Loss, or a Tax Credit Carryforward
Exists” which concludes an unrecognized tax benefit should be presented as a reduction of a deferred tax asset when settlement in this manner is
available under the tax law. We adopted this amendment in the first quarter of fiscal 2015, and the adoption did not have a material effect on our
consolidated financial statements.
In May 2014, the FASB issued guidance related to revenue from contracts with customers, which supersedes the revenue recognition
requirements in ASC 605, Revenue Recognition . Under this guidance, revenue is recognized when promised goods or services are transferred to
customers in an amount that reflects the consideration that is expected to be received for those goods or services. The new guidance also requires
additional disclosure about the nature, amount, timing and uncertainty of revenue and 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 updated standard
will replace most existing revenue recognition guidance under GAAP when it becomes effective and permits the use of either the full
retrospective or cumulative effect transition method. Early adoption is not permitted. The updated standard will be effective for us in the first
quarter of our fiscal year ending June 30, 2019. We have not yet selected a transition method and we are currently evaluating the effect that the
updated standard will have on our consolidated financial statements and related disclosures.
In February 2015, the FASB, issued new guidance related to consolidations. The new standard amends the guidelines for determining
whether certain legal entities should be consolidated and reduces the number of consolidation models. The new standard is effective for fiscal
years, and interim periods within those fiscal years, beginning after December 15, 2015. Early adoption is permitted. We are evaluating the
impact, if any, of adopting this new accounting guidance on our financial statements.
Basic net income (loss) per share is calculated by dividing net income (loss) by the weighted average number of common shares
outstanding for the period. Diluted net income (loss) per share is computed by dividing net income (loss) by the weighted average number of
common shares outstanding for the period, including potential dilutive common shares assuming the dilutive effect of outstanding stock options,
restricted stock, and restricted stock units using the treasury-stock method.
F-15
2.
Net income (loss) per share