Travelzoo 2015 Annual Report Download - page 104

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(n) Recent Accounting Pronouncements
In April 2014, the FASB issued an accounting standard update that changes the threshold and amends the requirements for
reporting discontinued operations. Under the amended guidance, a disposal of a component of an entity or a group of
components of an entity is required to be reported in discontinued operations if the disposal represents a strategic shift that has
(or will have) a major effect on an entity’s operations and financial results when the component or group of components meets
the criteria to be classified as held for sale or when the component or group of components is disposed of by sale or other than
by sale. For disposals of individually significant components that do not qualify as discontinued operations, an entity must
disclose pre-tax earnings of the disposed component. For public business entities, this guidance is effective prospectively 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. Early adoption is permitted, but only for disposals (or
classifications as held for sale) that have not been reported in financial statements previously issued or available for issuance.
This accounting standard update became effective for the Company on January 1, 2015. The adoption of this accounting
standard update did not have a material impact on the Company’s consolidated results of operations, financial position or cash
flows.
In May 2014, the FASB issued ASU 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.
ASU 2014-09 will replace most of the existing revenue recognition guidance in U.S. GAAP when it becomes effective. This
new accounting standard is effective for the Company on January 1, 2018. Early application is not permitted. This new
accounting standard permits the use of either the retrospective or cumulative effect transition method. The Company is
evaluating the effect that ASU 2014-09 will have on its consolidated financial statements and related disclosures. The Company
has not yet selected a transition method nor has it determined the effect of the standard on its ongoing financial reporting.
In August 2014, the FASB issued an accounting standard update that 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
and provides guidance on determining when and how to disclose going concern uncertainties in the financial statements.
Certain disclosures will be required if conditions give rise to substantial doubt about an entity’s ability to continue as a going
concern. This accounting standard update applies to all entities and is effective for the annual period ending after December 15,
2016, and for annual periods and interim periods thereafter, with early adoption permitted. This accounting standard update will
be effective for the Company on January 1, 2016. The adoption of this accounting standard update is not expected to have a
material impact on the Company’s consolidated results of operations, financial position or cash flows.
In April 2015, the FASB issued ASU 2015-03, Interest- Imputation of Interest, which requires that debt issuance costs
related to a recognized debt liability be presented in the balance sheet as a direct deduction from the carrying amount of that
debt liability. The new standard is effective for fiscal years, and interim periods within those fiscal years, beginning after
December 15, 2015. Early adoption is permitted. This accounting standard update will be effective for the Company on January
1, 2016. The adoption of this standard is not expected to have a material impact on the Company’s consolidated statement of
financial position.
In November 2015, the FASB issued ASU 2015-17, Balance Sheet Classification of Deferred Taxes, which simplifies the
presentation of deferred income taxes by requiring deferred tax assets and liabilities be classified as noncurrent on the balance
sheet. The updated standard is effective for us beginning on January 1, 2017 with early application permitted as of the
beginning of any interim or annual reporting period. This accounting standard update will be effective for the Company on
January 1, 2017. The adoption of this accounting standard update is not expected to have a material impact on the Company’s
consolidated statement of financial position.
In February 2016, the FASB issued an accounting standard update ASU 2016-02, Leases, which requires that lease
arrangements longer than 12 months result in an entity recognizing an asset and liability. ASU 2016-02 is effective for interim
and annual periods beginning after December 15, 2018, and early adoption is permitted. This accounting standard update will
be effective for the Company on January 1, 2019. The Company has not yet evaluated nor has it determined the effect of the
standard on its ongoing financial reporting.
Note 2: Net Income (Loss) Per Share
Basic net income (loss) per share is computed using the weighted-average number of common shares outstanding for the
period. Diluted net income (loss) per share is computed by adjusting the weighted-average number of common shares
outstanding for the effect of dilutive potential common shares outstanding during the period. Potential common shares included
in the diluted calculation consist of incremental shares issuable upon the exercise of outstanding stock options calculated using
the treasury stock method.