Out of period adjustment
|6 Months Ended
Jun. 30, 2014
|Accounting Changes and Error Corrections [Abstract]
|Change in Accounting Policy
During the three months ended June 30, 2014, the Company recorded an out of period adjustment to change the treatment of severance and ad valorem taxes from a direct reduction of sales to a cost of extraction which is included in inventory and cost of sales calculations. The adjustment increased sales for the year and quarter by $0.7 million for taxes treated as a direct reduction of sales in prior periods and increased cost of goods sold by $0.5 million. The net effect of the change is an increase in inventory and a decrease of net loss of $0.2 million as of June 30, 2014 and for the three and six month periods then ended. We have concluded that these adjustments were not material to the 2013 or first quarter 2014 results of operations and balance sheets.
The entire disclosure for reporting accounting changes and error corrections. It includes the conveyance of information necessary for a user of the Company's financial information to understand all aspects and required disclosure information concerning all changes and error corrections reported in the Company's financial statements for the period.
Reference 1: http://www.xbrl.org/2003/role/presentationRef