FIDELITY D & D BANCORP INC New Standards Disclosure

18.	RECENT ACCOUNTING PRONOUNCEMENTS

 

In December 2023, the Financial Accounting Standards Board (FASB) issued ASU 2023-09, Income Taxes (Topic 740): Improvements to Income Tax Disclosures. The amendments in this update require that public business entities on an annual basis (1) disclose specific categories in the rate reconciliation and (2) provide additional information for reconciling items that meet a quantitative threshold. The amendments in this update also require that all entities disclose on an annual basis the amount of income taxes paid disaggregated by federal, state, and foreign taxes and the amount of income taxes paid disaggregated by individual jurisdictions in which income taxes paid is equal to or greater than 5 percent of total income taxes paid. The amendments will require the disclosure of pre-tax income disaggregated between domestic and foreign, as well as income tax expense disaggregated by federal, state, and foreign. The amendment also eliminates certain disclosures related to unrecognized tax benefits and certain temporary differences. This ASU was effective for the year ended  December 31, 2025, and did not have a material impact on its consolidated financial statements.

 

In November 2024, FASB issued ASU 2024-03, Income Statement - Reporting Comprehensive Income - Expense Disaggregation Disclosures (Subtopic 220-40): Disaggregation of Income Statement Expenses, which requires disclosure in the notes to the financial statements of specified information about certain costs and expenses. The amendments are effective for fiscal years beginning after December 15, 2026, and for interim periods within fiscal years beginning after December 15, 2027. Early adoption is permitted. The amendments should be applied either prospectively to financial statements issued for reporting periods after the effective date of this ASU or retrospectively to any or all prior periods presented in the financial statements. The Company is currently evaluating the new guidance to determine the impact it may have on its consolidated financial statements and related disclosures but expects additional disclosures upon adoption.

 

In December 2025, the FASB issued ASU 2025‑10, Government Grants (Topic 832): Accounting for Government Grants Received by Business Entities, which establishes authoritative U.S. GAAP for the recognition, measurement, and presentation of government grants received by business entities. The new guidance defines what constitutes a government grant, prescribes a recognition threshold that requires it to be probable the entity will both comply with the grant’s conditions and receive the grant, and outlines presentation principles for grants related to assets and income. The amendments exclude certain transactions from scope, including income‑tax‑related items, below‑market loans, government guarantees, intangible assets, and contributions from nongovernmental sources. The guidance is effective for public business entities for annual periods beginning after December 15, 2028, and one year later for all other entities, with early adoption permitted. The Company is currently evaluating the new guidance to determine the impact it may have on its consolidated financial statements and related disclosures and anticipates expanded disclosures upon adoption.

 

In December 2025, the FASB issued ASU 2025‑11, Interim Reporting (Topic 270): Narrow‑Scope Improvements, which clarifies the applicability of interim reporting guidance and enhances the organization and navigability of interim disclosure requirements. The amendments introduce a disclosure principle requiring entities to disclose events occurring after the end of the most recent annual reporting period that have a material impact on the entity, and they compile a comprehensive list of interim disclosures within Topic 270. The guidance does not change the fundamental nature of interim reporting but provides clearer direction on the form, content, and required disclosures for interim financial statements. ASU 2025‑11 is effective for public business entities for interim reporting periods within fiscal years beginning after December 15, 2027, and for all other entities for interim reporting periods within fiscal years beginning after December 15, 2028, with early adoption permitted. The amendments may be applied prospectively or retrospectively. The Company is currently evaluating the new guidance to determine the impact it may have on its consolidated financial statements and related disclosures and expects additional disclosures upon adoption.

 

In December 2025, the FASB issued ASU 2025‑12, Codification Improvements, which introduces a series of technical corrections, clarifications, and incremental enhancements across various areas of the Accounting Standards Codification. These amendments address issues arising from unintended application, ambiguous language, and other minor improvements, including clarifications related to diluted earnings per share, lease receivable disclosures, beneficial interest calculations, treasury stock retirement methods, and the treatment of certain receivables. The improvements are not expected to significantly affect current accounting practices but are intended to enhance clarity, consistency, and usability throughout the Codification. The amendments are effective for annual periods beginning after December 15, 2026, including interim periods within those annual periods, with early adoption permitted.