Quarterly report pursuant to Section 13 or 15(d)

Note 13

v3.8.0.1
Note 13
 9 Months Ended
Sep. 30, 2017
Accounting Standards Update 2014-09 [Member]  
Notes to Financial Statements  
Description of New Accounting Pronouncements Not yet Adopted [Text Block]
(
1
3
)
In
May 2014,
the FASB issued ASU
No.
2014
-
09,
“
Revenue Recognition (Topic
606
): Revenue from Contracts with Customers”
(“ASU
2014
-
09”
). This ASU introduces a new
five
-step revenue recognition model in which an entity should recognize revenue to depict the transfer of promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services. This ASU also requires disclosures sufficient to enable users to understand the nature, amount, timing, and uncertainty of revenue and cash flows arising from contracts with customers, including qualitative and quantitative disclosures about contracts with customers, significant judgments and changes in judgments, and assets recognized from the costs to obtain or fulfill a contract. In
August 2015,
the FASB issued ASU
No.
2015
-
14,
“Revenue from
Contracts with Customers (Topic
606
): Deferral of the Effective Date”
(“ASU
2015
-
14”
). This ASU deferred the effective date for ASU
2014
-
09
to fiscal years beginning after
December 15, 2017,
including interim periods within that reporting period.
 
We have made significant progress evaluating our revenue agreements, by type, to determine the potential impact of adopting the new standard. The most
significant impact will involve easement agreements. Under current accounting, we recognize revenue related to term easement agreements over the term of the agreement. Upon adoption of the new standard on
January 1, 2018,
we will recognize revenue for term easements upon execution of these agreements and as a result, we will
no
longer have deferred revenue on our term easements. At
December 31, 2016
and
September 30, 2017,
deferred revenue for term easements is
$7,809,669
and
$30,845,929,
respectively. In addition, we are implementing appropriate changes to our business processes, systems, and controls to support recognition and disclosure requirements as a result of the new standard. We plan to apply the full retrospective method with optional practical expedients upon adoption. Under this transition approach, all prior periods presented in the financial statements will be presented as though the new standard had always been in effect. We are continuing to monitor additional authoritative and interpretive guidance related to the new standard as it becomes available.