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BIOTIME INC filed this Form 10-K/A on 03/29/2017
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In December 2016, FASB issued Accounting Standards Update, ASU, 2016-20, Technical Corrections and Improvements to Topic 606, Revenue from Contracts with Customers (ASU 2016-20) which amends narrow aspects of accounting standard ASU 2014-09 Revenue from Contracts with Customers (Topic 606). ASU-2016-20 is effective for periods beginning after December 15, 2017.

In May 2014, the FASB issued ASU 2014-09, Revenue from Contracts with Customers (Topic 606), which supersedes nearly all existing revenue recognition guidance under GAAP. The core principle of ASU 2014-09 is to recognize revenues when promised goods or services are transferred to customers in an amount that reflects the consideration to which an entity expects to be entitled for those goods or services. ASU 2014-09 defines a five-step process to achieve this core principle and, in doing so, more judgments and estimates may be required in the revenue recognition process than are required under existing GAAP. The revised revenue standard is effective for public entities for annual periods beginning after December 15, 2017, and interim periods therein, using either of the following transition methods: (i) a full retrospective approach reflecting the application of the standard in each prior reporting period with the option to elect certain practical expedients; or (ii) a retrospective approach with the cumulative effect of initially adopting ASU 2014-09 recognized at the date of adoption (which includes additional footnote disclosures).

Asterias has completed an initial assessment of the new revenue recognition standard under Topic 606, which will be effective for Asterias beginning on January 1, 2018, and Asterias will be working on an implementation plan to evaluate the accounting and disclosure requirements under the new standard. Based on the work performed to date, Asterias does not expect adoption of the new standard to have a material impact on the financial statements. Asterias has not finalized its transition method for adoption.

In March 2016, the FASB issued ASU 2016-09, Compensation—Stock Compensation (Topic 718): Improvements to Employee Share-Based Payment Accounting, which simplifies several aspects of the accounting for share-based payment transactions, including the income tax consequences, forfeitures, classification of awards as either equity or liabilities, and classification of awards on the statement of cash flows. The update is effective for fiscal years beginning after December 15, 2016, and interim periods within those annual periods. Asterias is currently evaluating the impact the adoption of ASU 2016-09 will have on its financial statements.

In February 2016, the FASB issued ASU 2016-02, Leases (Topic 842), which requires lessees to recognize assets and liabilities for leases with lease terms greater than twelve months in the statement of financial position. Leases will be classified as either finance or operating, with classification affecting the pattern of expense recognition in the income statement. ASU 2016-02 also requires improved disclosures to help users of financial statements better understand the amount, timing and uncertainty of cash flows arising from leases. The update is effective for fiscal years beginning after December 15, 2018, including interim reporting periods within that reporting period. Early adoption is permitted. Although Asterias has not completed its evaluation of the impact of the adoption of ASU 2016-02, since the significant operating leases Asterias has are currently on its balance sheet (see Note 8), the adoption of ASU 2016-02 is not expected to have a material impact to Asterias financial statements.

3. Balance Sheet Components

Property, plant and equipment, net

As of December 31, 2016 and 2015, property, plant and equipment, net were comprised of the following (in thousands):

December 31,
Computers, machinery and equipment
Furniture, fixtures and leasehold improvements
Less - accumulated depreciation and amortization
Property, plant and equipment, net

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