Significant Accounting Policies
|9 Months Ended|
Dec. 31, 2019
|Accounting Policies [Abstract]|
|Significant Accounting Policies||
Except for changes described in Note 2(b), the accompanying condensed consolidated financial statements and related notes of the Company have been prepared in accordance with US GAAP, on a basis consistent with those followed in the March 31, 2019 audited consolidated financial statements, and are expressed in US Dollars. The following accounting policies are consistently applied in the preparation of the consolidated financial statements. These consolidated financial statements include the accounts of the Company and the following entities:
All inter-company balances and transactions have been eliminated upon consolidation.
In February 2016, the FASB issued new lease accounting guidance in ASU No. 2016-02, "Leases". This new guidance eliminates the concept of off-balance sheet treatment for "operating leases" for lessees for the vast majority of lease contracts. Under ASU No. 2016-02, at inception, a lessee must classify all leases with a term of over one year as either finance or operating, with both classifications resulting in the recognition of a defined "right-of-use" asset and a lease liability on the balance sheet. However, recognition in the income statement will differ depending on the lease classification, with finance leases recognizing the amortization of the right-of-use asset separate from the interest on the lease liability and operating leases recognizing a single total lease expense. Lessor accounting under ASU No. 2016-02 would be substantially unchanged from the previous lease requirements under GAAP. ASU No. 2016-02 was in effect for public companies in fiscal years beginning after December 15, 2018. Accordingly, the Company's adopted the new guidance as of April 1, 2019.
The Company elected to apply the package of practical expedients which allows entities not to reassess its previous conclusions about lease identification, lease classification, and initial direct costs. The Company elected not to use hindsight to determine lease terms and to not separate non-lease components from the associated lease component. The Company had no operating leases that were adjusted upon transition. The Company commenced a new operating lease on premises on April 1, 2019 and recognized a right-of-use asset of $1,526,801 and a lease liability of $1,486,605 as of April 1, 2019. The adoption of the new lease standard did not materially impact the consolidated statement of operations and comprehensive income (loss) or the consolidated statement of cash flows. During this quarter, the right of use asset and lease liability recognized on adoption were amended for new information concerning the security deposit arrangement made with the landlord. The amendment has not resulted in a significant impact on our previously reported quarterly or annual financial information. For additional disclosure and detail, see note 8 below.
The Company has implemented all new accounting pronouncements that are in effect and that may impact its consolidated financial statements and management does not believe that there are any other new accounting pronouncements that have been issued that might have a material impact on its financial position or results of operations.
On July 2, 2019, the Company received $135,454 from a shareholder for the disgorgement of profits realized on stock transactions in violation of section 16(b) of the Securities Exchange Act of 1934 (the "Act"). In the interim consolidated financial statements at September 30, 2019 the Company had included this amount as an offset to office and miscellaneous expenses rather than presenting it as an adjustment to additional paid-in capital. Therefore, these amounts have been adjusted in the interim consolidated financial statements for the nine months ended December 31, 2019. An increase has been recorded to Office and miscellaneous expense, a decrease in net income and comprehensive income for the nine months ended December 31, 2019, an increase in additional paid-in capital at September 30, 2019 and a decrease in cash flow from operating activities and offsetting increase in financing activities for the nine months ended December 31, 2019.
The entire disclosure for all significant accounting policies of the reporting entity.
Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef