FIRST BANCORP /PR/FBP
FIRST BANCORP /PR/ New Standards Disclosure
Adoption of New Accounting Requirements
Standard
Description
Effective Date
Effect on the financial statements
ASU 2023-09 -Income
Taxes (Topic 740):
Improvements to Income
Tax Disclosures, Issued
December 2023
In December 2023, the FASB issued ASU
2023-09 to improve the annual income tax
disclosures to, among other things, require
disclosure of the following: eight prescribed
categories in the tabular rate reconciliation
(using both percentages and dollar amounts)
with certain reconciling items at or above 5%
further broken out by nature and/or
jurisdiction; income taxes paid (net of refunds
received) disaggregated by federal, state, and
foreign taxes; the amount of income taxes
paid (net of refunds received) disaggregated
by individual jurisdictions in which income
taxes paid (net of refunds received) is equal to
or greater than 5% of total income taxes paid
(net of refunds received); income or loss from
continuing operations before income tax
expense or benefit disaggregated between
domestic and foreign; and income tax expense
or benefit from continuing operations
disaggregated by federal, state, and foreign.
Management adopted the guidance
during the fourth quarter of 2025.
The ASU has been applied
retrospectively. Accordingly,
comparative disclosures were
provided for all periods presented.
As part of the adoption of this ASU,
the Corporation expanded its income
tax rate reconciliation to separately
present nontaxable or nondeductible
items, as well as changes in
unrecognized tax benefits.
Additionally, the Corporation
provided disaggregated disclosures
for its major jurisdictions, which
include local and federal taxes.
The Corporation was not impacted by the adoption of the following Accounting Standards Updates (“ASUs”) during 2025:
●
ASU 2024-02, “Codification Improvements – Amendments to Remove References to the Concepts Statements”
●
ASU 2024-01, “Compensation – Stock Compensation (Topic 718): Stock Application of Profits Interest and Similar
Awards”.
Recently Issued Accounting Standards Not Yet Effective or Not Yet Adopted
Standard
Description
Effective Date
Effect on the Financial Statements
ASU 2025-11, “Interim
Reporting”
In December 2025, the FASB issued ASU
2025-11, which clarifies when ASC 270
applies, addresses the form and content of
such financial statements, lists the interim
disclosures required by all other Codification
topics, and establishes a disclosure principle
under which an entity must disclose events
since the end of the last annual reporting
period that have a material impact on the
entity.
Effective for interim reporting
periods within annual reporting
periods beginning after December
15, 2027. Early adoption is
permitted. The amendments in this
ASU can be applied either
prospectively or retrospectively to
any or all prior periods presented
in the financial statements.
The Corporation will consider this
guidance when preparing its
interim disclosures for the first
quarter of 2028.
ASU 2025-08, “Financial
Instruments – Credit Losses
(Topic 326): Purchased
Loans”
In November 2025, the FASB issued ASU
2025-08, which expands the population of
acquired financial assets subject to the gross-
up approach in ASC 326 to include closed-
ended purchased seasoned loans, which
include non-PCD loans that are obtained in a
business combination and non-PCD loans that
are obtained in an asset acquisition or upon
consolidation of a VIE that is not a business
and are acquired more than 90 days after their
origination date by a transferee that was not
involved in their origination. In addition, an
entity can elect to use the amortized cost basis
of the asset to subsequently measure the ACL
if a method other than a discounted cash flow
method is used.
Effective for annual reporting
periods beginning after December
15, 2026, and interim periods
within those annual reporting
periods. The amendments in this
ASU should be applied
prospectively to loans that are
acquired on or after the adoption
date. Early adoption is permitted
in an interim or annual reporting
period in which financial
statements have not yet been
issued.
The Corporation will consider this
standard for loans that are
acquired on or after the adoption
date.
ASU 2025-06, “Intangibles
– Goodwill and Other –
Internal-Use Software
(Subtopic 350-40): Targeted
Improvements to the
Accounting for Internal-Use
Software”
In September 2025, the FASB issued ASU
2025-06, which, among other things, removes
all references to project stages in ASC 350-40
and replaces them with a probability-based
assessment framework to determine the
appropriate point at which capitalization of
software development costs should begin.
Effective for annual reporting
periods beginning after December
15, 2027, and interim reporting
periods within those annual
reporting periods. Early adoption
is permitted as of the beginning of
an annual reporting period. Any of
the following transition
approaches may be elected: a
prospective transition approach, a
modified transition approach that
is based on the status of the
project and whether software costs
were capitalized before the date of
adoption, and a retrospective
transition approach.
The Corporation does not expect
to be materially impacted by the
adoption of this ASU during the
first quarter of 2028.
ASU 2025-05, “Financial
Instruments – Credit Losses
(Topic 326): Measurement
of Credit Losses for
Accounts Receivable and
Contract Assets”
In July 2025, the FASB issued ASU 2025-05,
which provides a practical expedient for
current accounts receivable and current
contract assets accounted for pursuant to ASC
Topic 606. Such practical expedient, if
elected, allows an entity to assume that
current economic conditions as of the
reporting date remain unchanged over their
remaining lives.
Effective for annual reporting
periods beginning after December
15, 2025, and interim reporting
periods within those annual
reporting periods. Early adoption
is permitted for both interim and
annual financial statements that
have not yet been made available
for issuance. Prospective
application is required.
The Corporation does not expect
to be materially impacted by the
adoption of this ASU during the
first quarter of 2026.
ASU 2024-03, “Income
Statement – Reporting
Comprehensive Income –
Expense Disaggregation
Disclosures (Subtopic 220-
40): Disaggregation of
Income Statement
Expenses”
In November 2024, the FASB issued ASU
2024-03, which requires disclosure in the
notes to financial statements at each interim
and annual reporting period, of specified
information about certain costs and expenses
in a tabular format, including but not limited
to, employee compensation and intangible
asset amortization; the inclusion of amounts
already required under previous GAAP in the
same disclosure as these disaggregation
requirements; and a qualitative description of
the amounts remaining in relevant expense
captions that are not separately disaggregated
quantitatively.
Effective for annual periods
beginning after December 15,
2026, and interim periods
beginning after December 15,
2027. Early adoption is permitted
for annual financial statements not
yet issued. The amendments in
this ASU should be applied on a
prospective basis. Retrospective
application is permitted.
The Corporation will be impacted
by the standard and will disclose
required information by the
adoption date.
The Corporation does not expect to be impacted by the following ASUs that are not yet effective or have not yet been adopted:
●
ASU 2025-12, “Codification Improvements”
●
ASU 2025-09, “Derivatives and Hedging (Topic 815): Hedge Accounting Improvements”
●
ASU 2025-07, “Derivatives and Hedging (Topic 815) and Revenue from Contracts with Customers (Topic 606): Derivatives
Scope Refinements and Scope Clarification for Share-Based Noncash Consideration from a Customer in a Revenue Contract”
●
ASU 2025-04, “Compensation – Stock Compensation (Topic 718) and Revenue from Contracts with Customers (Topic 606):
Clarifications to Shared-Based Consideration Payable to a Customer”
●
ASU 2025-03, “Business Combinations (Topic 805) and Consolidation (Topic 810): Determining the Accounting Acquirer in
the Acquisition of a Variable Interest Entity”
●
ASU 2024-04, “Debt – Debt with Conversion and Other Options (Subtopic 470-20): Induced Conversions of Convertible Debt
Instruments”
Historical Timeline
| Fiscal Year | Filed | |
|---|---|---|
| 2025 | Feb 27, 2026 | Showing above |
| 2024 | Feb 28, 2025 | |
| 2023 | Feb 28, 2024 | |
| 2022 | Feb 28, 2023 | |
| 2021 | Mar 1, 2022 | |
| 2020 | Mar 1, 2021 | |
| 2019 | Mar 2, 2020 | |
| 2018 | Mar 1, 2019 | |
| 2017 | Mar 16, 2018 | |
| 2016 | Mar 16, 2017 | |
| 2015 | Mar 14, 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.