Recently Adopted Accounting Pronouncements
In December 2023, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) No. 2023-09, Income Taxes (Topic 740): Improvements to Income Tax Disclosure. This ASU enhances income tax disclosure requirements, including additional disaggregation of income taxes paid by federal, state, and foreign jurisdictions and expanded rate reconciliation disclosures across eight specific categories, presented in both dollar amounts and percentages. The Company adopted ASU No. 2023-09 effective for the year ended December 31, 2025 and applied the guidance retrospectively to all periods presented, updating comparative periods to reflect the additional disclosures. The adoption of ASU No. 2023-09 had no effect on the Company’s financial position, results of operations or cash flows as it modified disclosure requirements only. Refer to Note 10 of the Notes to the Consolidated Financial Statements, “Income Taxes” for the revised disclosures consistent with the new standard.
Recently Issued Accounting Pronouncements
In November 2024, the FASB issued ASU No. 2024-03, Income Statement - Reporting Comprehensive Income - Expense Disaggregation Disclosures (Subtopic 220-40) Disaggregation of Income Statement Expenses. This ASU requires disaggregated disclosures, in the notes to the financial statements, of certain categories of expenses that are included in expense line items on the face of the income statement. The ASU will be effective for fiscal years beginning after December 15, 2026, and interim periods within fiscal years beginning after December 15, 2027, to be applied prospectively, with early adoption and retrospective application permitted. The adoption of ASU No. 2024-03 is not expected to have any effect on the Company’s financial position, results of operations or cash flows as it modifies disclosure requirements only. The Company plans to adopt ASU No. 2024-03 during the year ending December 31, 2027.
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.