Tidal Basin - Laserfiche WebLink

Home Browse Search

N NOTES TO CONSOLIDATED FINANCIAL STATEMENTS--Continued ADJUSTERS INTERNATIONAL, INC. AND SUBSIDIARIES December 31, 2016 and 2015 1 NOTE A--SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES--Continued Unbilled Costs: Unbilled costs represent those labor costs and out of pocket expenses incurred on contracts that have been awarded to the Company and, pursuant to the contract terms, have yet to be billed to the customers. Inventory: Inventory is stated at the lower of cost (first-in, first-out method) or market. a Inventory consists of promotional clothing and other items held forressale. 'I ,V Deferred Financing Costs: Costs incurred to obtain long-term'financing are being amortized on a straight-line method over a ten year term. In April of. 2015, the FASB issued Accounting ,St rds Update ("ASU") No. 2015-03, "Interest-Imputation of Interest" (Topic 835-30) -qhp ilit fying the Presentation of Debt Issuance Costs". This ASU requires that debt issuance costs related to a recognized debt liability be presented on the balance sheet as a direct deduction from the carrying amount of that debt liability and amortization of the debt issuance costs to be recorded as interest expense. The provisions of ASU No. 2015-03 are effective for non-public business entities for annual reporting periods beginning after December 1;5 15. The Company elected to adop(A �No. 2015-03 during the year ended December 31, 2016 (See Note E), with a retrospectivesapplication made to the amounts and disclosures included in the financial statements as ofd for the year ended December 31, 2015. The-impact of adoption on the December 31, 2015tconsolidated balance sheet was a decrease in other assets and total assets of$11,425 with a corresponding decrease to long-term debt and total liabilities of$11,425. The impact of adoption on the consolidated income statement for the year ended December 31, 2015 was a decrease in depreciation and amortization expense of$1,986 and a corresponding increase in interest expense of $1,986. There was no impact to members' equity or net income as previously reported in the 2015 financial statements. The interest expense in the accompanying consolidated income statements for the years ended December 31, 2016 and 2015 includes $1,986 relating to the amortization of the deferred financing costs. Intangible Asset--Goodwill: Assets and liabilities of acquired businesses are recorded at their estimated fair values as of the date of acquisition. Goodwill represents costs in excess of fair values assigned to the underlying net assets of acquired businesses. Goodwill is recorded in accordance with ASU No. 2014-02, "Intangibles--Goodwill and Other (Topic 350) Accounting for Goodwill". Goodwill and other intangible assets with a finite life are amortized over the estimated useful life of the asset and are evaluated each reporting period to determine whether events and circumstances warrant a revision to the remaining period of amortization. Goodwill recorded as a result of the acquisition of Tidal Basin amounted to $3,200,000 and is being amortized over 10 years. Amortization expense in 2016 was $226,667. -11- 1