Recently Issued Accounting Guidance

Accounting guidance recently adopted

In September 2025, the FASB issued ASU 2025-06, Intangibles—Goodwill and Other—Internal-Use Software (Subtopic 350-40): Accounting for and Disclosure of Software Costs. The ASU eliminates the project-stage model for internal-use software, introduces a “probable-to-complete” capitalization threshold, and requires enhanced disclosures related to capitalized internal-use software costs. The Company early adopted this guidance in 2025 on a prospective basis. The Company believes that early adoption of ASU 2025-06 is preferable because it enhances transparency and comparability in the accounting for internal-use software costs and aligns the Company’s accounting with current authoritative guidance and industry practice. The Company capitalized approximately $0.4 million of qualifying internal-use software costs during the year ended December 31, 2025, which are included within other intangible assets, net. The adoption of this guidance did not have a material impact on the Company’s consolidated financial statements.

In December 2023, the FASB issued ASU 2023-09, Improvements to Income Tax Disclosures, which requires enhanced disaggregated disclosures related to an entity’s effective tax rate reconciliation and income taxes paid. The Company adopted this guidance in 2025 on a retrospective basis, and the required disclosures are reflected in this Annual Report on Form 10-K. The adoption of ASU 2023-09 did not have an impact on the Company’s recognition, measurement, or cash flows and resulted only in expanded income tax disclosures.

Accounting guidance not yet adopted

In November 2024, the FASB issued ASU 2024-03, Income Statement-Reporting Comprehensive Income-Expense Disaggregation Disclosures (Subtopic 220-40): Disaggregation of Income Statement Expenses (“ASU 2024-03”), which requires disclosure about the types of costs and expenses included in certain expense captions presented on the income statement. The new disclosure requirements are effective for the Company’s annual periods beginning after December 15, 2026, and interim periods beginning after December 15, 2027, with early adoption permitted. The Company is currently in the process of evaluating the impact of this pronouncement on our related disclosures

The Company continues to monitor new accounting pronouncements issued by the FASB and does not believe any accounting pronouncements issued through the date of this report will have a material impact on the Company’s Consolidated Financial Statements

Historical Timeline

Fiscal Year	Filed
2025	Mar 5, 2026	Showing above
2024	Mar 12, 2025

2023	Mar 12, 2024

2022	Mar 15, 2023

2021	Mar 23, 2022

About New Standards Disclosures

New accounting standards disclosures describe recently adopted pronouncements and those not yet effective, along with management's assessment of their expected impact. This section provides an early warning system for upcoming changes to how a company reports its financial results, often years before the new rules take effect.

Key signals: when management describes a not-yet-adopted standard's impact as "material" or "still being evaluated," it signals potential significant changes to reported metrics upon adoption. Watch for standards that affect a company's core operations — for example, revenue recognition changes for software companies or lease accounting changes for retailers with large store footprints. The transition method chosen (full retrospective versus modified retrospective) affects comparability with prior periods. Companies that delay adoption to the latest permitted date may be struggling with implementation complexity. Compare the disclosed impact assessments against peers in the same industry to gauge whether management's expectations are reasonable.

Bowman Consulting Group Ltd. New Standards Disclosure

Historical Timeline

About New Standards Disclosures

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