Energy Recovery, Inc.ERII
Energy Recovery, Inc. New Standards Disclosure
In December 2023, the FASB issued ASU 2023-09, Income Taxes (Topic 740): Improvement to Income Tax Disclosures
(“ASU 2023-09”). ASU 2023-09 was issued to enhance the transparency and decision usefulness of income tax disclosures. ASU 2023-09
is effective for annual periods beginning after December 15, 2024 (i.e., the Company’s 2025 Annual Report) on a prospective basis; however,
retrospective application is permitted. In addition, early adoption is permitted. On December 31, 2025, the Company adopted ASU 2023-09
prospectively and has applied the disclosure requirements to the period ended December 31, 2025 presented in the consolidated financial
statements. The Company has evaluated the impact of the adoption of ASU 2023-09 on its consolidated financial statements and
disclosures, and has determined that the adoption of this guidance will only impact disclosures, with no material impact on the Company’s
results of operations, cash flows, or financial condition. See Note 8, “Income Taxes,” for further discussion of the Company’s income taxes.
In October 2023, the FASB issued ASU 2023-06, Disclosure Agreements - Codification Amendments in Response to the SEC’s Disclosure Update and Simplification Initiative (“ASU 2023-06”). The amendments in ASU 2023-06 will impact various disclosure areas,
including the statement of cash flows, accounting changes and error corrections, earnings per share, debt, equity, derivatives, and transfers
of financial assets. The amendments in ASU 2023-06 will be effective on the date the related disclosures are removed from Regulation S-X
or Regulation S-K by the Securities and Exchange Commission (the “SEC”), and will no longer be effective if the SEC has not removed the
applicable disclosure requirement by June 30, 2027. Early adoption is prohibited. The Company has evaluated the impact of the adoption of
ASU 2023-06 on its consolidated financial statements and disclosures, and has determined that the adoption of this guidance will not
materially impact the Company’s current disclosures. In addition, the Company believes the adoption of ASU 2023-06 will not have a
material impact on results of operations, cash flows, or financial condition.
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”). ASU 2024-03 is intended
to require more detailed disclosures about specified categories of expenses (including employee compensation, depreciation, and
amortization) included in certain expense captions presented on the face of the income statement. ASU 2024-03 is effective for fiscal years
beginning after December 15, 2026 (i.e., the Company’s 2027 Annual Report), and for interim periods within fiscal years beginning after
December 15, 2027. Early adoption is permitted. The amendments may be applied either (1) prospectively to financial statements issued for
reporting periods after the effective date of ASU 2024-03 or (2) retrospectively to all prior periods presented in the financial statements. The
Company is evaluating the potential impact of this adoption on the consolidated financial statements and related disclosures.
In July 2025, the FASB issued Accounting Standards Update 2025-05, Measurement of Credit Losses for Accounts Receivable and Contract Assets (“ASU 2025-05”). ASU 2025-05 provides a practical expedient for measuring expected credit losses on current accounts
receivables and contract assets by assuming that conditions at the balance sheet date remain unchanged over the life of the asset. ASU
2025-05 is effective for annual reporting periods beginning after December 15, 2025 (i.e. the Company’s 2026 Annual Report), and interim
periods within those years, with early adoption permitted. The Company believes the adoption of ASU-2025-05 will not have a material
impact on results of operations, cash flows, or financial condition.
In December 2025, the FASB issued Accounting Standards Update 2025-11, Interim Reporting (Topic 270): Narrow-Scope Improvements (“ASU 2025-11”), which clarifies the guidance in Topic 270 to improve the consistency of interim financial reporting. ASU
2025-11 provides a comprehensive list of required interim disclosures and introduces a disclosure principle requiring entities to disclose
events subsequent to the end of the last annual reporting period that have a material impact on the entity. ASU 2025-11 is effective for fiscal
years beginning after December 15, 2027 (i.e. the Company’s 2028 Annual Report), including interim periods within those fiscal years, with
early adoption permitted. The Company is evaluating the potential impact of this adoption on the consolidated financial statements and
related disclosures.
Historical Timeline
| Fiscal Year | Filed | |
|---|---|---|
| 2025 | Feb 25, 2026 | Showing above |
| 2024 | Feb 26, 2025 | |
| 2023 | Feb 21, 2024 | |
| 2022 | Feb 22, 2023 | |
| 2021 | Feb 24, 2022 | |
| 2020 | Mar 12, 2021 | |
| 2019 | Mar 6, 2020 | |
| 2018 | Mar 7, 2019 | |
| 2017 | Mar 8, 2018 | |
| 2016 | Mar 10, 2017 | |
| 2015 | Mar 4, 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.