FASB Discusses Disaggregation of Income Statement Expenses

At its June 26, 2024, meeting, the FASB finished redeliberating its proposed Accounting Standards Update (ASU) Disaggregation of Income Statement Expenses. Specifically, the Board made tentative decisions related to “the disaggregation of relevant expense captions that contain purchases of inventory” and “using estimates and other methods.” The Board also affirmed previous decisions related to interim reporting and transition and directed the staff to proceed with drafting a final ASU for a vote by written ballot. The ASU’s amendments “will be effective for fiscal years beginning after December 15, 2026, and interim periods within fiscal years beginning after December 15, 2027,” with early adoption permitted.

For more information, see the tentative Board decisions on the FASB’s Web site.