ENTERPRISE FINANCIAL SERVICES CORPEFSC
ENTERPRISE FINANCIAL SERVICES CORP New Standards Disclosure
Recent Accounting Pronouncements
FASB ASU 2023-09, Income Taxes (Topic 740): Improvements to Income Tax Disclosures. ASU 2023-09 was issued in December 2023 to require annual disclosures on specific categories in the income tax rate reconciliation by rate and amount, and provide additional information for reconciling items that meet a quantitative threshold. Annual disclosures are required on income taxes paid, including the amounts paid for federal, state and foreign taxes and the amount paid in individual jurisdictions if the amount is equal to or greater than 5% of total income taxes paid (net of refunds received). Additional annual disclosures are required on pre-tax income from continuing operations and income tax expense, disaggregated by domestic and foreign amounts. The amendments in this update are effective for fiscal years beginning after December 15, 2024. The Company has adopted ASU 2023-09 for the 2025 calendar year on a prospective basis. Because the ASU affects disclosures only, the adoption did not affect the Company’s Consolidated Statements of Income or Consolidated Balance Sheet.
FASB ASU 2024-03, Income Statement-Reporting Comprehensive Income-Expense Disaggregation Disclosures (Subtopic 220-40): Disaggregation of Income Statement Expenses. ASU 2024-03 was issued in November 2024 to require public business entities to provide 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 amendments in this update improve the disclosures about a public business entity’s expenses and address requests from investors for more detailed information about the types of expenses in commonly presented expense captions. The amendments in this update are effective for fiscal years beginning after December 15, 2026 and interim periods within fiscal years beginning after December 15, 2027, with early adoption permitted. The amendments may be adopted prospectively or retrospectively. The Company is evaluating the accounting and disclosure requirements of ASU 2024-03 and does not expect them to have a material effect on the Company’s consolidated financial statements.
FASB ASU 2025-06, Intangibles-Goodwill and Other-Internal-Use Software (Subtopic 350-40): Targeted Improvements to the Accounting for Internal-Use Software. ASU 2025-06 was issued in September 2025 to amend certain aspects of the accounting for and disclosure of software costs under ASC 350-40. The ASU makes improvements to ASC 350-40 relating to internally developed software costs, supersedes guidance on website development costs, but does not amend guidance on costs of software licenses. The amendments in this update are effective for fiscal years beginning after December 15, 2027 and interim periods within those annual reporting periods, with early adoption permitted. The amendments may be applied on a prospective basis, a retrospective basis, or a modified prospective approach. The Company is evaluating the accounting and disclosure requirements of ASU 2025-06 and does not expect them to have a material effect on the Company’s consolidated financial statements.
FASB ASU 2025-08, Financial Instruments-Credit Losses (Topic 326): Purchased Loans. ASU 2025-08 was issued in November 2025 and expands the population of acquired financial assets subject to the gross-up approach in Financial Instruments-Credit Losses (Topic 326). As a result of these amendments, loans (excluding credit cards) acquired without a more-than-insignificant amount of credit deterioration since origination (a “non-PCD asset”) and deemed “seasoned” are PSLs and accounted for using the gross-up approach at acquisition. After an entity determines that an acquired loan is a non-PCD asset based on its assessment of credit deterioration experienced since origination, an entity should apply the guidance described in this ASU to determine whether the loan is seasoned and, therefore, should be accounted for using the gross-up approach. All non-PCD assets (excluding credit cards) that are acquired in a business combination are deemed seasoned. Other non-PCD assets (excluding credit cards) are seasoned if they were purchased at least 90 days after origination and the acquirer was not involved in the origination of the loans. The amendments in this update are effective for annual and interim periods beginning after December 15, 2026, with early adoption permitted. The amendments should be applied on a prospective basis. The Company has prospectively adopted ASU 2025-08 effective October 1, 2025. In the period of adoption, a credit mark of $3.3 million was recognized as an ACL on PSLs acquired from First Interstate Bank under the gross-up approach.
FASB ASU 2025-09, Hedge Accounting Improvements. ASU 2025-09 was issued in November 2025 and is intended to better enable entities to achieve and maintain hedge accounting for highly effective economic hedges, while reducing the occurrence of missed forecasted transactions and unintuitive hedge designation events. ASU 2025-09 updated the following five areas in the hedge accounting model: 1) Similar risk assessment for cash flow hedges, 2) Hedging interest payments on choose-your-rate debt, 3) Cash flow hedges of nonfinancial forecasted transactions, 4) Net written options as hedging instruments, 5) Foreign currency-denominated debt designated as a hedging instrument and a hedged item. The amendments in this update are effective for annual and interim periods beginning after December 15, 2026, with early adoption permitted. The amendments should be applied on a prospective basis. The Company is evaluating the accounting and disclosure requirements of ASU 2025-09 and does not expect them to have a material effect on the Company’s consolidated financial statements.
FASB ASU 2025-10, Government Grants (Topic 832): Accounting for Government Grants Received by Business Entities. ASU 2025-10 was issued in December 2025 and adds guidance on the recognition, measurement, and presentation of government grants depending on whether the grant is related to an asset or to income. For public business entities, the amendments in this update are effective for fiscal years beginning after December 15, 2028 and interim periods within those annual reporting periods, with early adoption permitted. The amendments may be applied on a modified prospective approach, a modified retrospective approach, or a full retrospective approach. The Company is evaluating the accounting and disclosure requirements of ASU 2025-10 and does not expect them to have a material effect on the Company’s consolidated financial statements.
FASB ASU 2025-11, Interim Reporting (Topic 270): Narrow-Scope Improvements. ASU 2025-11 was issued in December 2025 to improve the navigability of the guidance in ASC 270 and clarify when the guidance is applicable. The amendments clarify that an entity is subject to ASC 270 if it provides interim financial statements and notes in accordance with GAAP. The amendments also list the disclosures required under ASC 270, list the interim disclosures required under all other ASC topics, and establish the principle that an entity must disclose material events since the end of the last annual reporting period. For public business entities, the amendments in this update are effective for interim reporting periods within annual reporting periods beginning after December 15, 2027, with early adoption permitted. The amendments may be applied prospectively or retrospectively. The Company is evaluating the accounting and disclosure requirements of ASU 2025-11 and does not expect them to have a material effect on the Company’s consolidated financial statements.
FASB ASU 2025-12, Codification Improvements. ASU 2025-12 was issued in December 2025 to clarify, correct errors in, and make improvements to several topics in the codification. The amendments in this update are effective for fiscal years beginning after December 15, 2026 and interim periods within those annual reporting periods, with early adoption permitted. The amendments may be applied prospectively or retrospectively. The Company is evaluating the accounting and disclosure requirements of ASU 2025-12 and does not expect them to have a material effect on the Company’s consolidated financial statements.
Historical Timeline
| Fiscal Year | Filed | |
|---|---|---|
| 2025 | Feb 27, 2026 | Showing above |
| 2024 | Feb 28, 2025 | |
| 2023 | Feb 26, 2024 | |
| 2022 | Feb 24, 2023 | |
| 2021 | Feb 25, 2022 | |
| 2020 | Feb 19, 2021 | |
| 2019 | Feb 21, 2020 | |
| 2018 | Feb 22, 2019 | |
| 2017 | Feb 23, 2018 | |
| 2016 | Feb 24, 2017 | |
| 2015 | Feb 26, 2016 | |
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.