Income Statement Disaggregation: ASC 240-40 26-27

Overview

The FASB has released Accounting Standards Update (ASU) 2024-03, Income Statement—Reporting Comprehensive Income “Expense Disaggregation Disclosures (Subtopic 220-40): Disaggregation of Income Statement Expenses. This Update entails much more detail than the current requirements for public business entities. This Update enhances the disclosures regarding a public business entity’s expenses and addresses investors’ requests for more detailed information about the types of expenses, including inventory purchases, employee compensation, depreciation, amortization, and depletion. These details are provided within commonly presented expense captions such as cost of sales, SG&A, and research and development.

Highlights

• Disclosure - Overview
• Disclosure - Expense Disaggregation
• Implementation Guidance

Prerequisites

None.

Designed For

CPAs, Financial professionals and professional staff dealing with this topic.

Objectives

• Determine the extent of expense disaggregation disclosures necessary.
• Recognize the objective of expense disaggregation disclosures.
• Identify through examples, the expense disaggregation disclosures required.

Preparation

Some knowledge of the topic.