MASTER ANNUAL REPORT

Frenchman’s Creek, Inc. and Subsidiary

Notes to Consolidated Financial Statements ______________________________________________________________________________________________________________

Note 1. Nature of Organization and Significant Accounting Policies (Continued) Recent accounting pronouncement: In May 2014, the FASB issued Accounting Standards Update (ASU) 2014-09, Revenue from Contracts with Customers (Topic 606) . This standard outlines a single comprehensive model, which the Association will be required to use in accounting for revenue from contracts with its members and supersedes the most current revenue recognition guidance, including industry-specific guidance. The core principle of the revenue model is that revenue is recognized when a member obtains control of a good or ser- vice. A member obtains control when it has the ability to direct the use and obtains benefits from the good or service. Transfer of control is not the same as transfer of risk and rewards, as it is considered in the current guidance. The Association will also need to apply new guidance to determine whether revenue should be rec- ognized over time or at a point in time. ASU 2014-09, as deferred by ASU 2015-14, will be effective for annual reporting periods beginning after December 15, 2018, using either of two methods: (a) retrospective to each prior reporting period presented with the option to elect certain practical expedients as defined within ASU 2014 -09; or (b) retrospective with cumulative effect of initially applying ASU 2014-09 recognized at the date of initial application and providing certain additional disclosures as defined in ASU 2014-09. The Association has select- ed transition method (a), as described above, and believes the standard will not have a material effect on the financial statements.

Subsequent events: Management has assessed subsequent events through August 27, 2018, the date the financial statements were available to be issued.

Note 2. Inventories Inventories, as of April 30, 2018 and 2017, consisted of the following:

2018

2017

Food

$

185,776 195,656 328,702 14,155 724,289

$

155,622 179,717 332,042 13,294 680,675

Beverage Pro Shop

Fitness

$

$

2018/2019 Annual Report Page 37