Lifeward Ltd. New Standards Disclosure
| z. |
New Accounting Pronouncements
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| i. |
In December 2023, the FASB issued ASU 2023-09,
Income Taxes (Topic 740): Improvements to Income Tax Disclosures, which requires public entities, on an annual basis, to provide disclosure
of specific categories in the rate reconciliation, as well as disclosure of income taxes paid, disaggregated by jurisdiction. ASU 2023-09
is effective for fiscal years beginning after December 15, 2024, with early adoption permitted. The Company adopted ASU 2023-09 during
the year ended December 31, 2025 and has applied the disclosure prospectively. For additional information see Note 10 of these consolidated
financial statements. |
| i. |
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, requiring public entities to disclose additional information about specific expense categories in the notes
to the financial statements on an interim and annual basis. ASU 2024-03 is effective for fiscal years beginning after December 15, 2026,
and for interim periods beginning after December 15, 2027, with early adoption permitted. The Company is currently evaluating the impact
of adopting ASU 2024-03. |
| ii. |
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. This amendment introduces
a practical expedient for the application of the current expected credit loss (“CECL”) model to current accounts receivable
and contract assets. ASU 2025-05 is effective for fiscal years beginning after December 15, 2025, and interim reporting periods within
those annual reporting periods. Early adoption is permitted. The Company is currently evaluating the timing of adoption and impact of
this amendment on its consolidated financial statements and related disclosures. |
| iii. |
In December 2025, the
FASB issued ASU 2025-10, Government Grants (Topic 832): Accounting for Government Grants Received by Business Entities. The update provides
recognition, measurement, presentation, and disclosure requirements for government grants, including guidance for grants related to an
asset and grants related to income. The amendments introduce two permitted approaches for asset-related grants: a deferred income approach
or a cost accumulation approach. The guidance is effective for the Company beginning December 15, 2028, with early adoption permitted.
The Company is currently evaluating the impact on its consolidated financial statement. |
| iv. |
In December 2025, the
FASB issued ASU 2025-11 to amend the guidance in Interim Reporting (Topic 270). The update provides clarifications intended to improve
the consistency and usability of interim disclosure requirements, including a comprehensive listing of required interim disclosures and
a new disclosure principle for reporting material events occurring after the most recent annual period. The amendments do not change the
underlying objectives of interim reporting but are designed to enhance clarity in application. The guidance is effective for fiscal years
beginning after December 15, 2027, including interim periods within those fiscal years. The Company is currently evaluating the impact
on its consolidated financial statement disclosures. |
Historical Timeline
| Fiscal Year | Filed | |
|---|---|---|
| 2025 | Mar 18, 2026 | Showing above |
| 2024 | Mar 7, 2025 | |
| 2023 | Feb 27, 2024 | |
| 2022 | Feb 23, 2023 | |
| 2021 | Feb 24, 2022 | |
| 2020 | Feb 18, 2021 | |
| 2019 | Feb 20, 2020 | |
| 2018 | Feb 8, 2019 | |
| 2017 | Mar 8, 2018 | |
| 2016 | Feb 17, 2017 | |
| 2015 | Feb 29, 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.