HOULIHAN LOKEY, INC.HLI

HOULIHAN LOKEY, INC. New Standards Disclosure

10-KFiled May 15, 20251 min read
Recent Accounting Pronouncements
In November 2023, the Financial Accounting Standards Board (“FASB”) issued ASU No. 2023-07, Segment Reporting (Topic 280): Improvements to Reportable Segment Disclosures, which was designed to enhance disclosure requirements for public entities’ reportable segments. The update addresses investor calls for more comprehensive information regarding the expenses of each reportable segment. The amendments introduce additional annual and interim disclosure requirements, with a primary focus on significant segment expenses, each segment's profit or loss, and details pertaining to the Chief Operating Decision Maker (“CODM”). The Company has implemented the updated guidance and has revised its segment disclosures accordingly in Note 18.

The Company has evaluated all recently issued accounting pronouncements and, except as discussed below, has determined that no such standards that are not yet effective would have a material impact on the Company's consolidated financial statements and related disclosures.

In December 2023, the FASB issued ASU No. 2023-09, Income Taxes (Topic 740): Improvements to Income Tax Disclosures. This ASU enhances transparency in income tax reporting by expanding disclosure requirements for the rate reconciliation and income taxes paid. The guidance is effective for fiscal years beginning after December 15, 2024, with early adoption permitted. The Company is currently evaluating the impact of this ASU on its consolidated financial statements and related disclosures.

Historical Timeline

Fiscal YearFiled
2025May 15, 2025Showing above
2024May 21, 2024
2023May 25, 2023
2022May 27, 2022
2021May 21, 2021
2020May 15, 2020
2019May 24, 2019
2018May 25, 2018
2017Jun 13, 2017
2016Jun 23, 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.

Other Available Disclosures

Income TaxesRevenueEarnings Per ShareFair ValuePP&EGoodwill & IntangiblesLeasesSegmentsDebtCommitmentsPay vs Performance