W&T OFFSHORE INC New Standards Disclosure
Recently Adopted Accounting Standards
The Company adopted Accounting Standards Update No. 2023-07, Improvements to Reportable Segment Disclosures (“ASU 2023-07”) for the year ended December 31, 2024. ASU 2023-07 enhances the disclosures required for operating segments in the Company’s annual and interim consolidated financial statements. The adoption of ASU 2023-07 did not have an impact on our consolidated financial statements but required additional disclosures (see Note 15 – Segment Information).
Accounting Standards to be Adopted
In December 2022, the Financial Accounting Standards Board (the “FASB”) issued Accounting Standards Update No. 2023-09, Improvements to Income Tax Disclosures (“ASU 2023-09”), which is intended to enhance transparency of income tax disclosures. ASU 2023-09 requires specified categories in the annual rate reconciliation that meet quantitative thresholds and further disaggregation of income taxes paid by jurisdictional categories (federal (national), state and foreign). ASU 2023-09, which allows for early adoption, is effective for the Company prospectively to all annual periods beginning after December 15, 2024. The Company is currently assessing the impact of ASU 2023-09; however, it is not expected to have a material impact on the Company’s consolidated financial statements.
In November 2024, the FASB issued Accounting Standards Update No. 2024-03, Disaggregation of Income Statement Expenses (“ASU 2024-03”) to enhance the disclosures required for certain expense captions in the Company annual and interim consolidated financial statements. ASU 2024-03 is effective prospectively or retrospectively for annual reporting periods beginning after December 15, 2026, and interim reporting periods beginning after December 15, 2027. Early adoption is permitted. The Company continues to evaluate the impact of ASU 2024-03 on its disclosures however, it is not expected to have a material impact on the Company’s consolidated financial statements.
No other new accounting pronouncements issued or effective during 2024 have had or are expected to have a material impact on the Company’s consolidated financial statements.
Historical Timeline
| Fiscal Year | Filed | |
|---|---|---|
| 2024 | Mar 4, 2025 | Showing above |
| 2017 | Mar 2, 2018 | |
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.