Overview
The final ASU requires new tabular disclosures disaggregating prescribed expense categories within relevant income statement captions.
Relevant expense captions: Functional or natural expense line items within continuing operations.
Defining Issues | November 2024
The final ASU requires new disclosures to disaggregate prescribed natural expenses underlying any income statement caption.
ASU 2024-03, Disaggregation of Income Statement Expenses, addresses investor requests for more transparent information. The primary goal is to improve the decision usefulness of expense information on public business entities’ income statements through the disaggregation of relevant expense captions in the notes to the financial statements.
Effective dates | Public business entities |
Annual periods – Fiscal years beginning after | December 15, 2026 |
Interim periods – In fiscal years beginning after | December 15, 2027 |
Early adoption permitted? | Yes |
The final ASU requires new tabular disclosures disaggregating prescribed expense categories within relevant income statement captions.
Relevant expense captions: Functional or natural expense line items within continuing operations.
Purchases of inventory: Costs of acquiring raw materials and other externally purchased inputs.
Employee compensation: Wages, bonuses, social security contributions, benefits, stock compensation.
Depreciation: Consistent with amounts recorded for long-lived assets under ASC 360.
Intangible asset amortization: Consistent with amounts recorded under ASC 350.
Depreciation, Depletion, and Amortization: Specific to oil-and-gas producing activities.
Depletion: For industries other than oil-and-gas, should be disclosed separately.
Proposed ASU
Download pdfPodcast: Rolling the DISE
KPMG experts unpack the FASB’s DISE standard, covering new requirements, industry impacts and next steps.
FASB completes redeliberations on DISE
FASB reaffirms majority of proposals in the exposure draft and makes clarifying changes ahead of final ASU.
FASB issues proposed ASU on software cost accounting
Proposed amendments intend to modernize aged internal-use software guidance.
Receive the latest financial reporting and accounting updates with our newsletters and more delivered to your inbox.
Access our accounting research website for additional resources for your financial reporting needs.