FASB has issued an update to clarify the interim effective date of its new standard on disaggregation of income statement expenses for public companies with fiscal year-ends that do not align with the calendar year.
According to the FASB, public business entities must adopt the guidance in Update 2024-03 for annual reporting periods starting after Dec. 15, 2026, and interim periods within annual reporting periods beginning after Dec. 15, 2027.
The update addresses previous ambiguities regarding the effective date for non-calendar year-end entities, ensuring that all public business entities will adopt the disclosure requirements in their first annual reporting period after Dec.15, 2026. Learn more.