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New Accounting Pronouncements
 3 Months Ended
Mar. 31, 2025
Accounting Standards Update and Change in Accounting Principle [Abstract]  
New Accounting Pronouncements

Note 2: New Accounting Pronouncements

 

The Financial Accounting Standards Board (“FASB”) and, to a lesser extent, other authoritative rulemaking bodies promulgate generally accepted accounting principles (“GAAP”) to regulate the standards of accounting in the United States. From time to time, the FASB issues new GAAP standards, known as Accounting Standards Updates (“ASUs”) some of which, upon adoption, may have the potential to change the way in which the Company recognizes or reports within its consolidated financial statements. The following table provides a description of the accounting standards that are not currently effective, but could have an impact on the Company's consolidated financial statements upon adoption.

 

Standards Adopted as of March 31, 2025

Standard

 

Description

Required Date
of Implementation

Effect on Consolidated Financial Statements

Income taxes (Topic 740): Improvements to Income Tax Disclosures 2023-09

 

Amendments to ASC740 are being made to enhance the transparency and decision usefulness of income tax disclosures. The enhancements are made to provide information to better assess how an entity's operations and related tax risks and tax planning and operational opportunities affect its tax rate and prospects for future cash flows. The objective of these disclosure requirements is for an entity, particularly an entity operating in multiple jurisdictions, to disclose sufficient information to enable users of financial statements to understand the nature and magnitude of factors contributing to the difference between the effective tax rate and the statutory tax rate.

Public business entities are required to apply this guidance to annual periods beginning after December 15, 2024.

The adoption of this ASU does not have a material impact to the Company's consolidated financial statements.

 

Standards Not Yet Adopted as of March 31, 2025

Standard

 

Description

Required Date
of Implementation

Effect on Consolidated Financial Statements

Income Statement ASU 2024-03 (Subtopic 220-40): Disaggregation of Income Statement Expenses

 

ASU 2024-03 was issued to address requests from investors for more detailed information about the types of expenses in commonly presented income statement captions. The ASU requires new financial statement disclosures, disaggregating certain expense categories, such as compensation, depreciation, and amortization of intangible assets. This disaggregation is to be presented in a tabular format and aims to provide enhanced transparency into the relevant components of income statement expenses.

Fiscal years beginning after December 15, 2026, and interim periods within fiscal years beginning after December 15, 2027.

The Company is evaluating the adoption of the ASU but does not expect it will have a material impact to the Company's consolidated financial statements.