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Significant Accounting Policies (Policies)
3 Months Ended
Sep. 30, 2018
Accounting Policies [Abstract]  
Basis of Accounting, Policy [Policy Text Block]
The unaudited interim financial statements as of and for the
three
months ended
September 30, 2018
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, 2018.  
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, 2018
describes the significant accounting policies and methods used in the preparation of the consolidated financial statements.
New Accounting Pronouncements, Policy [Policy Text Block]
Recent A
ccounting Pronouncements
 
In
February 2016,
the Financial Accounting Standards Board ("FASB") issued Accounting Standards Update ("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 fiscal years beginning after
December 15, 2018,
including interim periods within those fiscal years, 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.
 
In
January 2017,
the FASB issued ASU
No.
2017
-
04,
"Intangibles-Goodwill and Other (Topic
350
): Simplifying the Test for Goodwill Impairment." Under the new guidance, if a reporting unit's carrying value amount exceeds its fair value, an entity will record an impairment charge based on that difference. The impairment charge will be limited to the amount of goodwill allocated to that reporting unit. The standard eliminates the requirement to calculate goodwill impairment using Step
2,
which calculates an impairment charge by comparing the implied fair value of goodwill with its carrying amount. The standard does
not
change the guidance on completing Step
1
of the goodwill impairment test. The amendments in this ASU are effective for annual and interim periods beginning after
December 15, 2019
and should be applied prospectively for annual and any interim goodwill impairment tests. Early adoption is permitted for entities for interim or annual goodwill impairment tests performed on testing dates after
January 1, 2017.
The Company is currently evaluating the impact of the update on our consolidated financial statements.
 
In
February 2018,
the FASB issued ASU
No.
2018
-
02,
“Income Statement – Reporting Comprehensive Income (Topic
220
): Reclassification of Certain Tax Effects from Accumulated Other Comprehensive Income”. For deferred tax items recognized in Accumulated Other Comprehensive Income (AOCI), changes in tax rates can leave amounts “stranded” in AOCI. Under ASU
2018
-
02,
FASB has given companies an option to reclassify the stranded tax effects resulting from the tax law and tax rate changes under the Tax Cuts and Jobs Act of
2017
from AOCI to retained earnings. This guidance is effective for fiscal years beginning after
December 15, 2018
and requires companies to disclosure whether they are or are
not
opting to reclassify the income tax effects from the new
2017
tax act. Early adoption is permitted. The Company is currently evaluating the impact of this update on its consolidated financial statements.
 
In
August 2018,
the FASB issued ASU
No.
2018
-
13,
"Fair Value Measurement ('Topic
820'
): Disclosure Framework - Changes to the Disclosure Requirements for Fair Value Measurement." The ASU modifies the disclosure requirements in Topic
820,
Fair Value Measurement, by removing certain disclosure requirements related to the fair value hierarchy, modifying existing disclosure requirements related to measurement uncertainty and adding new disclosure requirements, such as disclosing the changes in unrealized gains and losses for the period included in other comprehensive income for recurring Level
3
fair value measurements held at the end of the reporting period and disclosing the range and weighted average of significant unobservable inputs used to develop Level
3
fair value measurements. This ASU is effective for public companies for annual reporting periods and interim periods within those annual periods beginning after
December 15, 2019.
The Company is currently evaluating the effect, if any, that ASU
2018
-
13
will have on its consolidated financial statements.
 
In
August 2018,
the FASB issued ASU
No.
2018
-
14,
"Compensation - Retirement Benefits - Defined Benefit Plans - General (Subtopic
715
-
20
): Disclosure Framework - Changes to the Disclosure Requirements for Defined Benefit Plans." ASU
2018
-
14
removes certain disclosures that are
not
considered cost beneficial, clarifies certain required disclosures and added additional disclosures. This ASU is effective for public companies for annual reporting periods and interim periods within those annual periods beginning after
December 15, 2020.
The amendments in ASU
2018
-
14
must be applied on a retrospective basis. The Company is currently assessing the effect, if any, that ASU
2018
-
14
will have on its consolidated financial statements.