KKR & Co. Inc.KKR
KKR & Co. Inc. New Standards Disclosure
Adoption of New Accounting Pronouncements
Scope Application of Profits Interest and Similar Awards
In March 2024, the FASB issued ASU 2024–01, “Compensation—Stock Compensation (Topic 718): Scope Application of
Profits Interest and Similar Awards” (“ASU 2024–01”). ASU 2024–01 amends the guidance in Accounting Standard Codification
718 (“ASC 718”) by adding an illustrative example to demonstrate and clarify how to apply the scope guidance to determine
whether profits interests and similar awards should be accounted for as a share-based payment arrangement under ASC 718 or
another standard. KKR adopted this accounting standard effective for the year ended December 31, 2025, and its adoption did
not have a material impact on KKR’s consolidated financial statements.
Income Tax Disclosure Improvements
In December 2023, the FASB issued ASU 2023–09, "Income Taxes (Topic 740): Improvements to Income Tax
Disclosures" ("ASU 2023–09"). ASU 2023–09 intends to enhance the transparency and decision usefulness of income tax
disclosures, requiring disaggregated information about an entity’s effective tax rate reconciliation as well as income taxes paid.
KKR adopted this accounting standard effective for the year ended December 31, 2025 on a prospective basis and its adoption
did not have a material impact on KKR's consolidated financial statements. Refer to Note 18 "Income Taxes" for the expanded
disclosures.
Future Application of Accounting Standards
Expense Disaggregation Disclosures
In November 2024, the FASB issued ASU 2024–03, “Income Statement—Reporting Comprehensive Income—Expense
Disaggregation Disclosures (Subtopic 220-40): Disaggregation of Income Statement Expenses” (“ASU 2024–03”). ASU 2024–03
requires a public business entity to provide disaggregated disclosures of certain categories of expenses on an annual and interim
basis including employee compensation, depreciation, and intangible asset amortization for each income statement expense
line item that contains those expenses. The update will be effective for annual periods beginning after December 15, 2026 and
interim periods beginning after December 15, 2027. KKR is currently evaluating the impact of adopting this guidance on its
consolidated financial statements and disclosures.
Determining the Accounting Acquirer in the Acquisition of a Variable Interest Entity
In May 2025, the FASB issued ASU 2025–03, “Business Combinations (Topic 805) and Consolidation (Topic 810):
Determining the Accounting Acquirer in the Acquisition of a Variable Interest Entity” (“ASU 2025–03”). ASU 2025–03 requires an
entity involved in an acquisition transaction effected primarily by exchanging equity interests when the legal acquiree is a
variable interest entity (“VIE”) that meets the definition of a business to consider certain factors to determine which entity is the
accounting acquirer. The update will be effective for annual periods and interim periods in annual reporting periods beginning
after December 15, 2026. KKR does not expect the adoption to have a material impact on its consolidated financial statements
or disclosures.
Measurement of Credit Losses for Accounts Receivable and Contract Assets
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 simplifies the application of the current
expected credit loss model for current accounts receivable and current contract assets under ASC 606. The update will be
effective for annual periods and interim periods in annual reporting periods beginning after December 15, 2025. Early adoption
is permitted. KKR is currently evaluating the impact of adopting this guidance on its consolidated financial statements and
disclosures.
Targeted Improvements to the Accounting for Internal-Use Software
In September 2025, the FASB issued ASU 2025–06, “Intangibles—Goodwill and Other—Internal-Use Software (Subtopic
350-40): Targeted Improvements to the Accounting for Internal-Use Software” (“ASU 2025–06”). ASU 2025–06 eliminates
accounting consideration of software project development stages; requires capitalizing software costs when (i) management has
authorized and committed to funding the project and (ii) it is ‘probable’ the project will be completed and the software used to
perform its intended function (the ‘probable-to-complete’ threshold). ASU 2025–06 also enhances the guidance around the
‘probable-to-complete’ threshold. The update will be effective for annual periods and interim periods in annual reporting
periods beginning after December 15, 2027. KKR is currently evaluating the impact of adopting this guidance on its consolidated
financial statements and disclosures.
Financial Instruments—Credit Losses (Topic 326): Purchased Loans
In November 2025, the FASB issued ASU 2025-08, Financial Instruments - Credit Losses (Topic 326) - Purchased Loans. ASU
2025-08 expands the population of purchased financial assets subject to the gross-up approach in Topic 326. As a result of this
update, loans (excluding credit cards) acquired without credit deterioration and deemed “seasoned” as defined in the ASU will
follow the gross-up approach at acquisition and the initial allowance for credit losses is added to the purchase price to
determine the amortized cost basis of the loans. The update is effective for fiscal years beginning after December 15, 2026,
including interim periods within those fiscal years, and is to be applied prospectively to loans acquired on or after adoption;
early adoption is permitted. KKR is currently evaluating the impact of adopting this guidance on its consolidated financial
statements and disclosures.Historical Timeline
| Fiscal Year | Filed | |
|---|---|---|
| 2025 | Feb 27, 2026 | Showing above |
| 2024 | Feb 28, 2025 | |
| 2023 | Feb 29, 2024 | |
| 2022 | Feb 27, 2023 | |
| 2021 | Feb 28, 2022 | |
| 2020 | Feb 19, 2021 | |
| 2019 | Feb 18, 2020 | |
| 2018 | Feb 15, 2019 | |
| 2017 | Feb 23, 2018 | |
| 2016 | Feb 24, 2017 | |
| 2015 | Feb 26, 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.