Genie Energy Ltd. New Standards Disclosure

Accounting Standards Updates

 

In December 2023, the FASB issued ASU 2023-09, Income Taxes (Topic 740): Improvements to Income Tax Disclosures (“ASU 2023-09”). ASU 2023-09 will require public entities to disclose on an annual basis a tabular reconciliation using both percentages and amounts, broken out into specific categories with certain reconciling items at or above 5% of the statutory (i.e. expected) tax further broken out by nature and/or jurisdiction. The new provisions require all entities to disclose on an annual basis the amount of income taxes paid (net of refunds received), disaggregated between federal (national), state/local and foreign, and amounts paid to an individual jurisdiction when 5% or more of the total income taxes paid. The new provisions are required to be applied on a prospective basis; retrospective application was permitted. The guidance is effective for annual periods beginning after December 15, 2024. The Company adopted this guidance in 2025 and added the required disclosures on a prospective basis in Note 13— Income Taxes. There was no other impact to our consolidated financial statement disclosures as a result of adopting this new guidance.

 

In November 2024, the FASB issued ASU 2024-03, Income Statements—Reporting Comprehensive Income—Expense Disaggregation Disclosure (“ASU 2024-03”). ASU 2024-03 require entities to disclose additional information about specific expense categories related to cost of sales and selling, general and administrative expenses in the notes to financial statements at interim and annual reporting periods. This guidance will be effective for fiscal years beginning after December 15, 2026, and interim periods within fiscal years beginning after December 15, 2027. Early adoption is permitted. The Company is currently evaluating the impact this new guidance will have on our consolidated financial statements and related disclosures.

 

In July 2025, the FASB issued ASU 2025-05, Financial Instruments—Credit Losses (Topic 326): Measurement of Credit Losses for Accounts Receivable and Contract Assets (“ASU 2025-05”). ASU 2025-05 provides a practical expedient permitting entities to assume that conditions at the balance sheet date remain unchanged over the life of the asset when estimating expected credit losses for current accounts receivable and current contract assets. The guidance is effective for annual reporting periods beginning after December 15, 2025, and for interim periods within those annual reporting periods. Early adoption is permitted. The guidance should be applied prospectively. The Company is currently evaluating the impact of adopting the guidance and believes that the adoption will not have a material impact on the consolidated financial statement disclosures.