Table:
| (In thousands) | March 31, 2018 | Adjustment from Topic 606 | April 1, 2018 |
| --- | --- | --- | --- |
| Assets: |  |  |  |
| Accounts receivable, net | 16,389 | 3,124 | 19,513 |
| Contract assets | — | 4,583 | 4,583 |
| Prepaid expenses and other current assets | 5,593 | (496) | 5,097 |
| Other non-current assets | 2,484 | 2,409 | 4,893 |
| Liabilities: |  |  |  |
| Contract liabilities | 26,820 | 7,006 | 33,826 |
| Shareholders' equity: |  |  |  |
| Retained earnings | 103,601 | 2,614 | 106,215 |
Paragraphs:
Financial Statement Impact of Adoption on Previously Reported Results
We adopted Topic 606 using the modified retrospective method. The cumulative impact of applying the new guidance to all contracts with customers that were not completed as of April 1, 2018 was recorded as an adjustment to retained earnings as of the adoption date. As a result of applying the modified retrospective method to adopt the new standard, the following adjustments were made to noted accounts on the Consolidated Balance Sheet as of April 1, 2018:
The acceleration of revenue that was deferred under prior guidance as of the adoption date was primarily attributable to the requirement of Topic 606 to allocate the transaction price to the performance obligations in the contract on a relative basis using SSP rather than allocating under the residual method, which allocates the entire arrangement discount to the delivered performance obligations.
Due to the Company's full valuation allowance as of the adoption date, there is no tax impact associated with the adoption of Topic 606.
We made certain presentation changes to our Consolidated Balance Sheet on April 1, 2018 to comply with Topic 606. Prior to adoption of the new standard, we offset accounts receivable and contract liabilities (previously presented as deferred revenue on our Consolidated Balance Sheet) for unpaid deferred performance obligations included in contract liabilities.
Under the new standard, we record accounts receivable and related contract liabilities for non-cancelable contracts with customers when the right to consideration is unconditional. Upon adoption, the right to consideration in exchange for goods or services that have been transferred to a customer when that right is conditional on something other than the passage of time were reclassified from accounts receivable to contract assets.
Question:
What is the tax impact associated with the adoption of Topic 606?
Answer: Due to the Company's full valuation allowance as of the adoption date, there is no tax impact associated with the adoption of Topic 606.