In response to long-standing investor requests for greater disaggregated income statement information, in November 2024 the Financial Accounting Standards Board (FASB) issued Accounting Standards Update (ASU) 2024-03, Income Statement – Reporting Comprehensive Income – Expense Disaggregation Disclosures (Subtopic 220-40): Disaggregation of Income Statement Expenses (ASU 2024-03). Under ASU 2024-03, public business entities are required to disclose in the notes to their financial statements disaggregated information about certain costs and expenses in both annual and interim filings. ASU 2024-03 is effective for calendar year-end public business entities generally beginning in calendar year 2027.
This Financial Reporting Insight provides a high-level overview of the new requirements, including illustrative examples from ASU 2024-03, and certain items to keep in mind for 2024 year-end reporting.
