2015-241A - Laserfiche WebLink

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West Construction, Inc. and Subsidiaries Notes to Consolidated Financial Statements As of and for the years ended December 31, 2014 and 2013 1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED): Income Taxes (Continued) The Company conducts business in several foreign countries. Construction projects located in foreign countries may be subject to local corporate income tax. Tax liabilities associated with these foreign countries are recorded when the liability is incurred. Management has assessed its tax positions for the years ended December 31, 2014 and 2013 and determined there are no uncertain tax positions to be recognized. The Company is generally no longer subject to U.S. federal, state and local examinations by tax authorities for years before 2011. Management continually evaluates expiring statutes of limitations, audits, proposed settlements, changes in new tax law and new authoritative rulings. Advertising Costs The Company expenses advertising costs when the advertisement occurs. Estimates The preparation of consolidated financial statements in conformity with generally accepted accounting principles requires management to make estimates and assumptions that affect certain reported amounts and disclosures. Accordingly, actual results could differ from those estimates. Subsequent Events The Company has evaluated subsequent events through April 27, 2015, the date which the financial statements were available to be issued. 2. CONCENTRATION OF CREDIT RISK: The Company maintains its cash balances at several financial institutions. Accounts are insured by the Federal Deposit Insurance Corporation up to $250,000. The uninsured balances at December 31, 2014 and 2013 approximated $4,620,000 and $692,000, respectively. The Company has not experienced any losses in such accounts, and believes it is not exposed to any significant credit risk on cash and cash equivalents. -11 of18-