Recent accounting pronouncements
The Company considers the applicability and impact of all accounting standard updates ("ASUs") issued by the Financial Accounting Standards Board (“FASB”). ASUs issued during the year ended December 31, 2025 and not listed below were assessed and either determined to be not applicable or expected to have minimal impact on the Company’s consolidated financial statements.
Issued and effective as of December 31, 2025
In December 2023, the FASB issued Accounting Standards Update 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. The Company adopted this accounting standard effective for the year ended December 31, 2025. Refer to Note 16 “Income taxes” for the expanded disclosures.
Issued but not yet effective as of December 31, 2025
In November 2024, the FASB issued Accounting Standards Update 2024-03, Income Statement—Reporting Comprehensive Income—Expense Disaggregation Disclosures (Subtopic 220-40): Disaggregation of Income Statement Expenses (“ASU 2024-03”). The amendment aims to provide additional details about expenses deemed important to understanding an entity’s performance, assessing its prospects for future cash flows, and comparing its performance both over time and with that of other entities. ASU 2024-03 is effective for annual reporting periods beginning after December 15, 2026 and interim reporting periods beginning after December 15, 2027. Management is in the process of reviewing this update to assess the impact on future reporting periods.
In July 2025, the FASB issued Accounting Standards Update 2025-05, Financial Instruments—Credit Losses (Topic 326): Measurement of Credit Losses for Accounts Receivable and Contract Assets (“ASU 2025-05”). The amendment provides guidance for estimating expected credit losses on current accounts receivable and current contract assets. ASU 2025-05 is effective for all entities for annual periods beginning after December 15, 2025, and interim reporting periods within those annual reporting periods. Management is in the process of reviewing this update to assess the impact on future reporting periods.
In September 2025, the FASB issued Accounting Standards Update 2025-06, Intangibles—Goodwill and Other—Internal-Use Software (Subtopic 350-40): Targeted Improvements to the Accounting for Internal-Use Software (“ASU 2025-06”). The amendment updates accounting guidelines around capitalizing software costs. ASU 2025-06 is effective for all entities for annual periods beginning after December 15, 2027, and interim reporting periods within those annual reporting periods. Management is in the process of reviewing this update to assess the impact on future reporting periods.
In November 2025, the FASB issued Accounting Standards Update 2025-09, Derivatives and Hedging (Topic 815): Hedge Accounting Improvements (“ASU 2025-09”). The amendment is intended to better align hedge accounting with the economics of an entity’s risk management activities. ASU 2025-09 is effective for annual reporting periods and interim periods in annual reporting periods beginning after December 15, 2026. Management is in the process of reviewing this update to assess the impact on future reporting periods.