What Accounting Standards Update (ASU) did Budget adopt on January 1, 2024, and what topic does it amend?
Budget Franchise · 2025 FDDAnswer from 2025 FDD Document
On January 1, 2024, as the result of a new accounting pronouncement, we adopted ASU 2023-07, "Improvements to Reportable Segment Disclosures," which amends Topic 280 primarily through enhanced disclosures about significant segment expenses. The adoption of this accounting pronouncement has resulted in incremental disclosures within the notes to our Consolidated Financial Statements.
Source: Item 21 — FINANCIAL STATEMENTS (FDD page 79)
What This Means (2025 FDD)
According to Budget's 2025 Franchise Disclosure Document, on January 1, 2024, Budget adopted ASU 2023-07, "Improvements to Reportable Segment Disclosures." This update amends Topic 280.
Topic 280 is amended primarily through enhanced disclosures about significant segment expenses. The adoption of this accounting pronouncement has resulted in incremental disclosures within the notes to Budget's Consolidated Financial Statements.
For a prospective Budget franchisee, this means that Budget has updated its financial reporting to provide more detailed information about the expenses associated with different segments of its business. This increased transparency can help franchisees better understand the financial performance of various aspects of Budget's operations.