• Filing Date: 2020-10-15
  • Form Type: 10-Q
  • Description: Quarterly report
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3. SIGNIFICANT ACCOUNTING POLICIES (Policies)
3 Months Ended
Aug. 31, 2020
Accounting Policies [Abstract]  
Equity Method Investment

Equity Method Investment - Investments classified as equity method consist of investments in companies in which the Company is able to exercise significant influence but not control. Under the equity method of accounting, the investment is initially recorded at cost, then the Company’s proportional share of investee’s underlying net income or loss is recorded as a component of “other income” with a corresponding increase or decrease to the carrying value of the investment. Distributions received from the investee reduce the Company’s carrying value of the investment. These investments are evaluated for impairment if events or circumstances arise that indicate that the carrying amount of such assets may not be recoverable. No changes in carrying value or impairments were recognized for the Company’s equity method investment during the quarter ended August 31, 2020. See Note 11.