Disaggregation of Income Statement Expenses (DISE)
Issues in Depth | November 2025
ASU 2024-03 introduces new expense disaggregation disclosures.
We break down the requirements step-by-step, offer practical examples and provide key considerations to assist companies in their journey to implementation.
Applicability
- All public business entities, including small reporting companies and entities whose financial statements are included in another entity's SEC filings
Relevant dates
| Effective date | Public entities |
|---|---|
| Annual periods – Fiscal years beginning after | Dec. 15, 2026 |
| Interim periods – In fiscal years beginning after | Dec. 15, 2027 |
| Early adoption permitted? | Yes |
Key impacts
Continuing the FASB’s recent efforts to enhance expense transparency for investors – starting with ASU 2023-07 on segment reporting and following with ASU 2023-09 on income tax disclosures – the third installment in this trilogy is upon us.
Enter ASU 2024-03, focused on expense disaggregation disclosures. While it does not alter the look of the income statement (no new line items or subtotals), it requires public business entities to peel back the layers of certain expense captions in the notes. The goal? Greater clarity into how companies operate and spend – driven by natural expense categories – with the intent to promote comparability across entities.
Report contents:
- Scope, overview and timing
- Relevant expense captions
- Natural expenses defined
- How to apply the disaggregation requirements
- Disclosure requirements and tabular disclosure
- Selling expenses
- Illustrative disclosures
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