|TRIVAGO N.V. filed this Form 20-F on 03/06/2018|
obligations created by those leases regardless of whether they are classified as finance or operating leases. Consistent with current guidance, the recognition, measurement, and presentation of expenses and cash flows arising from a lease primarily will depend on its classification as a finance or operating lease. The guidance also requires new disclosures to help financial statement users better understand the amount, timing and uncertainty of cash flows arising from leases. This guidance is effective for annual and interim reporting periods beginning after December 15, 2018. Early adoption is permitted and should be applied using a modified retrospective approach. We are in the process of evaluating the impact of adopting this new guidance on our consolidated financial statements.
In August and November 2016, the FASB issued ASU 2016-15 and ASU 2016-18, that include new guidance related to the statement of cash flows, which clarifies how companies present and classify certain cash receipts and cash payments as well as amends current guidance to address the classification and presentation of changes in restricted cash in the statement of cash flows. The new guidance is effective for annual periods, and interim periods within those annual periods, beginning after December 15, 2017 with early adoption permitted. We will adopt this new guidance on January 1, 2018 retrospectively and currently anticipate the most significant impact to be inclusion of those amounts deemed to be restricted cash and restricted cash equivalents in our cash and cash-equivalent balances in the consolidated statement of cash flows.
In October 2016, the FASB issued ASU 2016-16 amending the accounting for income taxes associated with intra-entity transfers of assets other than inventory. This accounting update is intended to reduce diversity in practice and the complexity of tax accounting, particularly for those transfers involving intellectual property. This new guidance requires an entity to recognize the income tax consequences of an intra-entity transfer of an asset other than inventory when the transfer occurs. The new standard is effective for annual periods, and interim periods within those annual periods, beginning after December 15, 2017. We will adopt this new guidance on January 1, 2018. A material impact on the financial statements is currently not expected.
In January 2017, the FASB issued ASU 2017-01, that clarifies the definition of a business for determining whether transactions should be accounted for as acquisitions (or disposals) of assets or businesses. The new standard is effective for annual periods, and interim periods within those annual periods, beginning after December 15, 2017. We will adopt this new guidance on January 1, 2018. The standard must be applied prospectively. Upon adoption, the standard will impact how we assess acquisitions (or disposals) of assets or businesses.
In January 2017, the FASB issued ASU 2017-03, for various topics regarding disclosures of impacts that recently issued Accounting Standards will have on the Financial Statements when they are adopted in a future period. When adopting the guidance of any of these topics we will also evaluate the impact of this guidance.
In May 2017, the FASB issued ASU 2017-09, about which changes to the terms or conditions of a share-based payment award require an entity to apply modification accounting. The new standard is effective for annual periods, and interim periods within those annual periods, beginning after December 15, 2017. This guidance will be taken into account in considering modification accounting when terms or conditions of share-based payment awards are present.
3.Acquisitions and divestitures
On July 16, 2015, we completed the acquisition of a 61.3% equity interest in myhotelshop GmbH (“myhotelshop”), a marketing manager, for total purchase consideration of €0.6 million consisting of cash and the settlement of pre-existing debt at the closing of the acquisition.
On August 5, 2015, we completed the acquisition of a 52.3% equity interest in base7booking.com Sarl (“base7”), a cloud-based property management service provider, for total purchase consideration of €2.1 million in cash.