Lineage, Inc.LINE
Lineage, Inc. New Standards Disclosure
Recently adopted accounting pronouncements
In March 2024, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) 2024-01, Compensation — Stock Compensation (Topic 718): Scope Application of Profits Interests and Similar Awards. This ASU clarifies the application of ASC 718, Compensation — Stock Compensation, to profits interests and similar instruments by providing illustrative examples of the proper accounting for such awards. The ASU does not contain changes to the application of the previously existing accounting guidance. The Company adopted this ASU on January 1, 2025. The adoption did not have an effect on the Company’s consolidated financial statements because the Company’s historical accounting for profits interests and similar instruments conforms to the clarified guidance.
In December 2023, the FASB issued ASU 2023-09, Income Taxes (Topic 740): Improvements to Income Tax Disclosures. This ASU amends existing income tax disclosure guidance, primarily requiring more detailed disclosure for income taxes paid and the effective tax rate reconciliation. This ASU is effective for annual periods beginning after December 15, 2024 and interim periods beginning after December 15, 2025. The Company adopted this ASU on a prospective basis in the consolidated financial statements in this Annual Report.Recently issued accounting pronouncements not yet adoptedThe following table provides a brief description of recent accounting pronouncements that could have a material effect on the Company’s consolidated financial statements.
| Standard | Description | Date of Adoption | Effect on the Financial Statements or Other Significant Matters | ||||||||
ASU 2024-03, Income Statement—Reporting Comprehensive Income—Expense Disaggregation Disclosures (Subtopic 220-40): Disaggregation of Income Statement Expenses | This ASU enhances disclosures about a public business entity’s expenses and requires more detailed information about the types of expenses that are included in certain expense captions in the consolidated financial statements. | Annual reporting periods beginning after December 15, 2026 and interim reporting periods beginning after December 15, 2027 | The Company expects the adoption of this ASU will result in additional disclosures but will not impact its consolidated financial statements. | ||||||||
ASU 2025-03, Business Combinations (Topic 805) and Consolidation (Topic 810): Determining the Accounting Acquirer in the Acquisition of a Variable Interest Entity | This ASU provides updated guidance on identifying the accounting acquirer when a business combination involves a variable interest entity that also meets the definition of a business, and the transaction is affected primarily by exchanging equity interests. | Annual and interim reporting periods beginning after December 15, 2026 | The Company does not expect this ASU to have a material impact on its consolidated financial statements. | ||||||||
ASU 2025-04, Compensation—Stock Compensation (Topic 718) and Revenue from Contracts with Customers (Topic 606): Clarifications to Share-Based Consideration Payable to a Customer | This ASU clarifies how to account for share-based payments under ASC 606 and ASC 718. | Annual and interim reporting periods beginning after December 15, 2026 | The Company does not expect this ASU to have a material impact on its consolidated financial statements. | ||||||||
| Standard | Description | Date of Adoption | Effect on the Financial Statements or Other Significant Matters | ||||||||
ASU 2025-06, Intangibles—Goodwill and Other—Internal-Use Software (Subtopic 350-40): Targeted Improvements to the Accounting for Internal-Use Software | This ASU provides updated guidance about criteria for capitalizing software costs and extends disclosure requirements in ASC 360-10 to all capitalized software costs. | Annual and interim reporting periods beginning after December 15, 2027 | The Company is currently evaluating the impact this guidance will have on its consolidated financial statements. | ||||||||
ASU 2025-07, Derivatives and Hedging (Topic 815) and Revenue from Contracts with Customers (Topic 606): Derivatives Scope Refinements and Scope Clarification for Share-Based Noncash Consideration from a Customer in a Revenue Contract | This ASU provides updated guidance about the scope of derivative accounting under ASC 815, as well as clarifies how share-based noncash considerations from a customer should be accounted for. | Annual and interim reporting periods beginning after December 15, 2026 | The Company is currently evaluating the impact this guidance will have on its consolidated financial statements. | ||||||||
ASU 2025-09, Derivatives and Hedging (Topic 815): Hedging Accounting Improvements | This ASU provides targeted improvements intended to enhance the application of hedge accounting, including expanded eligibility of forecasted transactions, additional flexibility in measuring hedge effectiveness, and clarifications related to hedging non-financial items. | Annual and interim reporting periods beginning after December 15, 2026 | The Company is currently evaluating the impact this guidance will have on its consolidated financial statements. | ||||||||
ASU 2025-10, Government Grants (Topic 832): Accounting for Government Grants Received by Business Entities | This ASU provides recognition, measurement, presentation, and disclosure requirements for government grants, including guidance for grants related to an asset and grants related to income. | Annual and interim reporting periods beginning after December 15, 2028 | The Company does not expect this ASU to have a material impact on its consolidated financial statements. | ||||||||
ASU 2025-11, Interim Reporting (Topic 270): Narrow-Scope Improvements | This ASU 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. | Annual and interim reporting periods beginning after December 15, 2027. | The Company is currently evaluating the impact this guidance will have on its consolidated financial statements. | ||||||||
| Standard | Description | Date of Adoption | Effect on the Financial Statements or Other Significant Matters | ||||||||
ASU 2025-12, Codification Improvements | This ASU provides targeted technical corrections and clarifications to improve the clarity and consistency of U.S. GAAP. The amendments do not change underlying accounting principles but are intended to resolve inconsistencies, clarify application, and enhance usability across multiple topics, including EPS, leases, credit losses, and revenue related receivables. | Annual and interim reporting periods beginning after December 15, 2026. | The Company is currently evaluating the impact this guidance will have on its consolidated financial statements. | ||||||||
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.