FASB Clarifies Effective Date of ASU on Disclosures About Disaggregation of Income Statement Expenses

The FASB has released ASU 2025-01, which revises 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.” Entities within the ASU’s scope are permitted to early adopt the ASU.

The rationale for the Board’s clarification of ASU 2024-03’s effective date is that 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.”

For more information, see the press release on the FASB’s Web site.