8x8 2016 Annual Report Download - page 67

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significant continuing involvement with a discontinued operation. The accounting update is effective for annual periods beginning on or after December 15, 2014.
We adopted this pronouncement for our fiscal year beginning April 1, 2015, and there was no effect on our consolidated financial statements.
In July 2015, the FASB issued ASU 2015-11, Simplifying the Measurement of Inventory, (Topic 330), which amends the guidelines for the measurement of
inventory. Under the amendments, an entity should measure inventory valued using a first-in, first-out or average cost method at the lower of cost and net
realizable value. Net realizable value is defined as the estimated selling price in the ordinary course of business, less reasonably predictable costs of completion,
disposal, and transportation. This amendment is effective for fiscal years beginning after December 15, 2016, including interim periods within those fiscal years.
Early adoption is permitted. The Company is currently assessing the impact of this pronouncement to its consolidated financial statements.
In May 2014, the FASB issued ASU No. 2014-09, Revenue from Contracts with Customers, which requires an entity to recognize the amount of revenue to which
it expects to be entitled for the transfer of promised goods or services to customers. The ASU will replace most existing revenue recognition guidance in U.S.
GAAP when it becomes effective. The new standard will become effective for the Company on April 1, 2018. The standard permits the use of either the
retrospective or cumulative effect transition method. The Company has not yet selected a transition method. The Company is currently assessing the impact of this
pronouncement to its consolidated financial statements.
In September 2015, the FASB issued ASU 2015-16, Business Combinations (Topic 805): Simplifying the Accounting for Measurement-Period Adjustments. Topic
805 requires an acquirer to retrospectively adjust provisional amounts recognized in a business combination during the measurement period. To simplify the
accounting for adjustments made to provisional amounts, the amendment requires that the acquirer recognize adjustments to provisional amounts that are identified
during the measurement period in the reporting period in which the adjustment amount is determined. The acquirer is required to also record, in the same period's
financial statements, the effect on earnings of changes in depreciation, amortization, or other income effects, if any, as a result of the change to the provisional
amounts, calculated as if the accounting had been completed at the acquisition date. In addition, an entity is required to present separately on the face of the income
statement or disclose in the notes to the financial statements the portion of the amount recorded in current-period earnings by line item that would have been
recorded in previous reporting periods if the adjustment to the provisional amounts had been recognized as of the acquisition date.
The amendments are effective for fiscal years beginning after December 15, 2015, including interim periods within those fiscal years. The amendments should be
applied prospectively to adjustments to provisional amounts that occur after the effective date with earlier application permitted for financial statements that have
not been issued. The Company is currently assessing the impact of this pronouncement to its consolidated financial statements.
In November 2015, the FASB issued ASU No. 2015-17, Balance Sheet Classification of Deferred Taxes, (Topic 740), which amends the current requirement for
organizations to present deferred tax assets and liabilities as current and noncurrent in a classified balance sheet. Under the amendment, an entity will be required
to classify all deferred tax assets and liabilities as noncurrent.
This amendment is effective for fiscal years beginning after December 15, 2016, including interim periods within those fiscal years. Early adoption is permitted.
The Company is currently assessing the impact of this pronouncement to its consolidated financial statements.
In February 2016, the FASB issued 2016-02, Leases(Topic842). Topic 842 requires companies to generally recognize on the balance sheet operating and
financing lease liabilities and corresponding right-of-use assets. The update also requires qualitative and quantitative disclosures designed to assess the amount,
timing, and uncertainty of cash flows arising from leases. The update requires the use of a modified retrospective transition approach, which includes a number of
optional practical expedients that entities may elect to apply.
This amendment is effective for fiscal years beginning after December 15, 2018, including interim periods within those fiscal years. Early adoption is permitted.
The Company is currently assessing the impact of this pronouncement to its consolidated financial statements.
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