MIDDLESEX WATER CO New Standards Disclosure
| Standard | Description | Date of Adoption | Application | Effect on the Condensed Consolidated Financial Statements | ||||||||||
Accounting Standards Update (ASU) 2023-09 “Improvements to Income Tax Disclosures” | The ASU amends certain income tax disclosure requirements, including adding requirements to present the reconciliation of income tax expense computed at the statutory rate to actual income tax expense using both percentages and amounts and providing a disaggregation of income taxes paid. Further, certain disclosures are eliminated, including the current requirement to disclose information on changes in unrecognized tax benefits in the next 12 months. | The ASU is effective for the Company beginning with its annual financial statements for the year ending December 31, 2025. | Prospective, with retrospective application also permitted. | The Company adopted ASU 2023-09 prospectively and has enhanced its income tax disclosures included in Note 3, Income Taxes, to comply with the requirements. The adoption of ASU 2023-09 did not have a material impact on the Company’s consolidated financial statements. | ||||||||||
ASU 2024-03 “Disaggregation of Income Statement Expenses” | The ASU enhances disclosures related to income statement expenses to further disaggregate expenses in the footnotes to the financial statements. The standard requires disaggregation of any relevant expense caption presented on the face of the income statement that contains the following expense categories: purchases of inventory, employee compensation, depreciation, intangible asset amortization, and depletion. Further, the standard requires disclosure of the total amount and the entity’s definition of selling expenses. | The ASU is effective for the Company beginning with its annual financial statements for the year ending December 31, 2027. | Prospective, with retrospective application also permitted. | The Company is currently evaluating the requirements of ASU 2024-03. | ||||||||||
| ASU 2025-06 "Internal-Use Software" | This ASU removes all reference to prescriptive and sequential software development stages, requiring an entity to start capitalizing software costs when the following criteria are both met: (i) management has authorized and committed to funding the software project and (ii) it is probable that the project will be completed and the software will be used to perform the function intended. Further, the standard requires disclosure for all capitalized internal-use software costs and removes the requirement for intangibles disclosures for capitalized internal-use software. | The ASU is effective for the Company beginning with its annual financial statements for the year ending December 31, 2028. | Prospective, with a modified transition or retrospective application also permitted. | The Company is evaluating the impact of ASU 2025-06 on its Consolidated Financial Statements and the timing of adoption. | ||||||||||
Historical Timeline
| Fiscal Year | Filed | |
|---|---|---|
| 2025 | Feb 19, 2026 | Showing above |
| 2024 | Feb 28, 2025 | |
| 2023 | Mar 1, 2024 | |
| 2022 | Feb 24, 2023 | |
| 2018 | Mar 8, 2019 | |
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.