FASB Proposes Clarification to Effective Date of ASU on Disclosures About Disaggregation of Income Statement Expenses

The FASB has released a proposed Accounting Standards Update (ASU) that would revise the effective date of ASU 2024-03 (on disclosures about disaggregation of income statement expenses) “to clarify that all public business entities are required to adopt the guidance in annual reporting periods beginning after December 15, 2026, and interim periods within annual reporting periods beginning after December 15, 2027.” The rationale for issuing the proposal is that, without this clarification, non-calendar-year-end entities could have concluded that initial adoption of the ASU’s amendments was required “in an interim reporting period, rather than in an annual reporting period.”

Comments on the proposal are due by December 10, 2024. For more information, see the press release on the FASB’s Web site.