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FASB Seeks Public Comment On Clarification To Interim Effective Date For New Disaggregation Of Income Statement Expenses Standard

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FASB Seeks Public Comment On Clarification To Interim Effective Date For New Disaggregation Of Income Statement Expenses Standard

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The FASB has issued ASU 2024-03, Income Statement—Reporting Comprehensive Income—Expense Disaggregation Disclosure (Subtopic 220-40), to enhance the transparency and decision-usefulness of a public business entity’s expense disclosures. ASU is effective for public business entities for annual periods beginning after December 15, 2026, and interim periods beginning after December 15, 2027.

Subsequent to the issuance of ASU 2024-03, the FASB was asked to clarify the initial effective date for entities that do not have an annual reporting period that ends on December 31. The Exposure Draft clarifies that for all public business entities with non-calendar year-ends, ASU 2024-03 is to be adopted for the annual reporting periods beginning after December 31, 2026. Interim reporting after the annual reporting period would then incorporate the requirements of 2024-03. Early adoption would be permitted.

The full text of the Exposure Draft can be found here.


 

Published: 01/06/2025

Readers should not act upon information presented without individual professional consultation.

Any federal tax advice contained in this communication (including any attachments): (i) is intended for your use only; (ii) is based on the accuracy and completeness of the facts you have provided us; and (iii) may not be relied upon to avoid penalties.

 

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