EAST WEST BANCORP INCEWBC
EAST WEST BANCORP INC New Standards Disclosure
Accounting Pronouncement Adopted in 2025
| Standard | Required Date of Adoption | Description | Effect on Financial Statements | ||||||||
ASU No. 2023-09, Income Taxes (Topic 740): Improvements to Income Tax Disclosures | December 31, 2025 Early adoption is permitted. | ASU 2023-09 amends the disclosure requirements for income tax rate reconciliation and income taxes paid. The guidance requires public business entities to provide on an annual basis: •A reconciliation of statutory tax rate to effective tax rate, using both percentages and reporting currency amounts, into specific categories with reconciling items at or above 5% of the statutory federal income rate. •The amount of income taxes paid (net of refunds) disaggregated by federal, state and foreign taxes, with further disaggregation by individual jurisdictions that are equal to 5% or more of income taxes paid. •Income (or loss) before income tax expense (or benefit) disaggregated between domestic and foreign, and income tax expense (or benefit) disaggregated by federal, state and foreign. | The Company adopted ASU 2023-09 on December 31, 2025, retrospectively by providing the revised disclosures for all periods presented. | ||||||||
Recent Accounting Pronouncements Yet to be Adopted
| Standard | Required Date of Adoption | Description | Effect on Financial Statements | ||||||||
ASU No. 2025-09, Derivatives and Hedging (Topic 815): Hedge Accounting Improvements | January 1, 2027 Early adoption is permitted. | ASU 2025-09 addresses five specific matters: 1.Broadens the set of hedged risk that may be combined within a group of individual forecasted transactions in a cash flow hedge. 2.Enables entities to apply cash flow hedge accounting on “choose-your-rate” debt. 3.Broadens situations where hedge accounting can be applied to forecasted purchases and sales of nonfinancial assets. 4.Removes the requirement to perform net written option assessment for a compound derivative when it is designated as a hedging instrument. 5.In the case of a dual hedge where a foreign- currency-denominated debt instrument is designated as the hedging instrument in a net investment hedge and a hedged item in a fair value of interest rate risk, the ASU requires the debt instruments’ fair value-hedge basis adjustment be excluded when performing the net investment hedge effectiveness assessment. This guidance must be applied prospectively for all hedging relationships. The Company may elect to adopt this ASU amendments for hedging relationships as of the adoption date. | The Company is currently evaluating the impact of this guidance and does not expect adoption to have a material impact on the Company’s Consolidated Financial Statements. | ||||||||
Recent Accounting Pronouncements Yet to be Adopted (Continued)
| Standard | Required Date of Adoption | Description | Effect on Financial Statements | ||||||||
ASU No. 2025-08, Financial Instruments—Credit Losses (Topic 326) | January 1, 2027 Early adoption is permitted. | ASU 2025-08 broadens the population of financial assets that are within scope of the gross up approach under ASC 326 to include purchased seasoned loans which are defined as: •Non-PCD loans that are obtained in a business combination. •Non-PCD loans that are (1) obtained in an asset acquisition or upon consolidation of a VIE that is not a business and (2) are acquired more than 90 days after their origination date by a transferee that was not involved in their origination. The guidance introduces an accounting policy election to use the amortized cost basis of the asset rather than the discounted cash flow analysis to subsequently measure the credit losses on purchased seasoned loans. The new guidance is not applicable to credit card loans, ASC 606 receivables, or debt securities. The guidance must be applied prospectively. | The Company is currently evaluating the impact of this guidance on the Company’s Consolidated Financial Statements. | ||||||||
ASU No. 2024-03, Income Statement —Reporting Comprehensive Income — Expense Disaggregation Disclosures (Subtopic 220-40): Disaggregation of Income Statement Expenses | December 31, 2027 Early adoption is permitted. | ASU 2024-03 requires public companies to disclose, in interim and annual reporting periods, additional information about certain expenses in the notes to financial statements. Disclosures of disaggregated expenses include the following: •The amounts of (a) purchases of inventory; (b) employee compensation; (c) depreciation; (d) intangible asset amortization; and (e) depreciation, depletion and amortization of capitalized costs related to oil- and gas-producing activities in each relevant expense caption. •A qualitative description of the amounts remaining in relevant expense captions that are not separately disaggregated quantitatively. | The Company is currently evaluating the impact of this guidance on the Company’s Consolidated Financial Statements. | ||||||||
Historical Timeline
| Fiscal Year | Filed | |
|---|---|---|
| 2025 | Feb 27, 2026 | Showing above |
| 2019 | Feb 27, 2020 | |
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.