Significant Accounting Policies (Policies)

6 Months Ended

Jun. 30, 2019

Accounting Policies [Abstract]

New Accounting Pronouncements, Policy [Policy Text Block]

Recently Implemented Pronouncements

On

January 1, 2019,

the Company adopted Accounting Standards Codification (“ASC”)

842,

Leases. The new standard is intended to provide enhanced transparency and comparability by requiring lessees to record right of use assets and corresponding lease liabilities on the balance sheet. The new guidance requires the Company to continue to classify leases as either operating or financing, with classification affecting the pattern of expense recognition in the income statement. The Company is also required to disclose qualitative and quantitative information about leasing arrangements to enable financial statement users to assess the amount, timing and uncertainty of cash flows arising from leases. The Company adopted ASC

842

using a modified retrospective method that did

not

require the prior period information to be restated. ASC

842

also provides a number of optional provisions, known as practical expedients, which companies

may

elect to adopt to facilitate implementation. The Company elected a package of practical expedients which, among other items, precludes the Company from needing to reassess

1

) whether any expired or existing contracts are or contain leases,

2

) the lease classification of any expired or existing leases, and

3

) initial direct costs for any existing leases. In addition, SPAR Group elected an accounting policy to exclude from the consolidated balance sheets the right-of-use ("ROU") assets and lease liabilities related to short-term leases, which are those leases with an initial lease term of

twelve

months or less that do

not

include an option to purchase the underlying asset that SPAR Group is reasonably certain to exercise.

Due to the implementation of selected practical expedients, there was

no

cumulative effect adjustment to beginning retained earnings. See Note

11

–Leases for additional disclosures.

On

January 1, 2019,

the Company also adopted the following Accounting Standards Updates (“ASUs”) which had

no

material impact on its unaudited condensed consolidated financial statements or disclosures:

● ASU 2018 - 07, Compensation—Stock Compensation (Topic 718 ): Improvements to Nonemployee Share-based payment accounting

● ASU 2018 - 09, Codification Improvement

● ASU 2018 - 16, Derivatives and Hedging—Inclusion of the Secured Overnight Financing Rate (SOFR) Overnight Index Swap (OIS) Rate as a Benchmark Interest Rate for Hedge Accounting Purposes

During

2018,

the Company adopted the following ASU:

● ASU No. 2014 - 09 (Topic 606 ), Revenue from Contracts with Customers - The adoption of ASC 606 did not have a material impact on the Company’s existing or new contracts as of January 1, 2018; therefore, no cumulative adjustment to beginning retained earnings was required as a result of adoption. The Company adopted using the modified retrospective transition method.