XML 30 R20.htm IDEA: XBRL DOCUMENT v3.6.0.2
Significant Accounting Policies (Policies)
6 Months Ended
Dec. 31, 2016
Accounting Policies [Abstract]  
Basis of Accounting, Policy [Policy Text Block]
The unaudited interim financial statements as of and for the
three
and
six
months ended
December
31,
2016
have been prepared by The L.S. Starrett Company (the “Company”) in accordance with accounting principles generally accepted in the United States of America for interim financial reporting.  Accordingly, they do not include all of the information and notes required by generally accepted accounting principles for complete financial statements.  These unaudited financial statements, which, in the opinion of management, reflect all adjustments (including normal recurring adjustments) necessary for a fair presentation, should be read in conjunction with the financial statements and notes thereto included in the Company’s Annual Report on Form
10
-K for the year ended
June
30,
2016.
  Operating results are not necessarily indicative of the results that
may
be expected for any future interim period or for the entire fiscal year.
 
The preparation of financial statements and related disclosures in conformity with accounting principles generally accepted in the United States of America requires management to make judgments, assumptions and estimates that affect amounts reported in the consolidated financial statements and accompanying notes.  Note
2
to the Company’s Consolidated Financial Statements included in the Annual Report on Form
10
-K for the year ended
June
30,
2016
describes the significant accounting policies and methods used in the preparation of the consolidated financial statements.
New Accounting Pronouncements, Policy [Policy Text Block]
In
May
2014,
the FASB issued a new standard related to the “Revenue from Contracts with Customers” which amends the existing accounting standards for revenue recognition. The standard requires entities to recognize revenue when it transfers promised goods or services to customers in an amount that reflects the consideration the entity expects to be entitled to in exchange for those goods or services. This standard is applicable for fiscal years beginning after
December
 
15,
2017
and for interim periods within those years. Earlier application will be permitted only as of annual reporting periods beginning after
December
15,
2016,
including interim reporting periods within that reporting period. The Company expects to adopt this standard for its fiscal year beginning
July
 
1,
2018.
The Company is currently evaluating the impact of the adoption of this standard on its consolidated financial statements. 
 
In
July
2015,
the FASB issued ASU No.
2015
-
11,
"Inventory (Topic
330):
Simplifying the Measurement of Inventory." Previous to the issuance of this ASU, ASC
330
required that an entity measure inventory at the lower of cost or market. ASU
2015
-
11
specifies that “market” is defined as “net realizable value,” or the estimated selling price in the ordinary course of business, less reasonably predictable costs of completion, disposal, and transportation. This ASU is effective for fiscal years, and for interim periods within those fiscal years, beginning after
December
15,
2016.
Application is to be applied prospectively with earlier application permitted as of the beginning of an interim or annual reporting period. The adoption of ASU No.
2015
-
11
will not have a material impact on our consolidated financial statements.
 
In
February
2016,
the FASB issued ASU No.
2016
-
02,
“Leases (Topic
842)”.
  The ASU requires that organizations that lease assets recognize assets and liabilities on the balance sheet for the rights and obligations created by those leases.  The ASU will affect the presentation of lease related expenses on the income statement and statement of cash flows and will increase the required disclosures related to leases.  This ASU is effective for annual periods beginning after
December
15,
2018,
and interim periods thereafter, with early adoption permitted.  The Company is currently evaluating the impact of ASU No.
2016
-
02
on its consolidated financial statements.  It is expected that a key change upon adoption will be the balance sheet recognition of leased assets and liabilities and that any changes in income statement recognition will not be material.