RYAN SPECIALTY HOLDINGS, INC.RYAN
RYAN SPECIALTY HOLDINGS, INC. New Standards Disclosure
Recently Issued Accounting Pronouncements
New Accounting Pronouncements Recently Adopted
In December 2023, the FASB issued ASU 2023-09 Income Taxes (Topic 740) — Improvements to Income Tax Disclosures,
which includes amendments that enhance income tax disclosures, primarily through standardization and the disaggregation
of rate reconciliation categories and income taxes paid by jurisdiction. This ASU is effective for annual reporting periods
beginning after December 15, 2024. The amendments in this ASU should be applied on a prospective basis, however,
retrospective application is permitted. The Company adopted this ASU retrospectively as of December 31, 2025. See Note
17, Income Taxes, for the resulting incremental disclosures related to the Company’s income taxes.
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, which provides a practical expedient permitting entities to
assume that current conditions as of the balance sheet date do not change for the remaining life of current accounts
receivables and contract assets when estimating expected credit losses. This ASU is effective for annual reporting periods
beginning after December 15, 2025, and interim reporting periods within those annual reporting periods, with early
adoption permitted. The Company early adopted this ASU prospectively in the third quarter of 2025, with no material
impact to the consolidated financial statements or disclosures.
In November 2025, the FASB issued ASU 2025-09 Derivatives and Hedging (Topic 815) — Hedge Accounting
Improvements, which includes amendments to better align hedge accounting with the economics of an entity’s risk
management activities by allowing entities to achieve and sustain hedge accounting for highly effective economic hedges
of forecasted transactions. This ASU is effective for annual reporting periods beginning after December 15, 2026, and
interim periods within those annual reporting periods, with early adoption permitted. The Company early adopted this ASU
as of December 31, 2025, and will apply it prospectively to new hedging relationships.
Recently Issued Accounting Pronouncements Not Yet Adopted
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, which requires the
disaggregation of certain expense captions into specified categories in disclosures within the footnotes to the financial
statements. This ASU is effective for annual reporting periods beginning after December 15, 2026, and interim periods
within fiscal years beginning after December 15, 2027, with early adoption permitted. The amendments in this ASU may
be applied either prospectively or retrospectively. The Company is currently evaluating the impact of adopting this ASU on
its disclosures.
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, which removes all references to
prescriptive and sequential software development stages and instead requires entities to begin capitalizing costs once
management has authorized and committed to funding the software, and it is probable that the project will be completed
and used to perform its intended functions. Significant uncertainty regarding development activities must be assessed when
evaluating if a project is probable to be completed. Additionally, the ASU clarifies certain disclosure requirements for
capitalized internal-use software costs. This ASU is effective for annual reporting periods beginning after December 15,
2027, and interim reporting periods within those annual reporting periods, with early adoption permitted. The amendments
in this ASU may be applied prospectively, using a modified transition approach, or retrospectively. The Company is
currently evaluating the impact of adopting this ASU on its consolidated financial statements and disclosures.
In December 2025, the FASB issued ASU 2025-11 Interim Reporting (Topic 270) — Narrow-Scope Improvements, which
includes amendments that clarify when the interim reporting guidance is applicable, outlines the interim disclosures
required under this guidance and all other ASC topics, and establishes a disclosure principle that requires an entity to
disclose material events that have occurred since the last annual reporting period. This ASU is effective for interim
reporting periods within annual reporting periods beginning after December 15, 2027, with early adoption permitted. The
amendments in this ASU may be applied prospectively or retrospectively. The Company is currently evaluating the impact
of adopting this ASU on its consolidated financial statements and disclosures.
In December 2025, the FASB issued ASU 2025-12 Codification Improvements, which includes amendments that provide
clarification, correct technical errors, and make minor improvements with the intent to make the Accounting Standard
Codification easier to understand and apply. This ASU is effective for annual reporting periods beginning after December
15, 2026, and interim periods within those annual reporting periods, with early adoption permitted. The amendments in this
ASU may be applied prospectively or retrospectively. The Company is currently evaluating the impact of adopting this
ASU on its consolidated financial statements and disclosures.
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.