When does ASU 2024-03 become effective for Budget?
Budget Franchise · 2025 FDDAnswer from 2025 FDD Document
In November 2024, the FASB issued ASU 2024-03, "Disaggregation of Income Statement Expenses," which amends Topic 220 primarily through requiring disclosures, in the notes to financial statements, about certain costs and expenses. The amendments are effective for annual periods beginning after December 15, 2026 and interim periods beginning after December 15, 2027, with early adoption permitted on a prospective or retrospective basis. ASU 2024-03 becomes effective for us on January 1, 2027. We are currently evaluating the impact of the adoption of this accounting prenouncement on 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, ASU 2024-03 becomes effective for Budget on January 1, 2027. ASU 2024-03, issued by the FASB in November 2024, concerns the "Disaggregation of Income Statement Expenses" and amends Topic 220. The amendment primarily requires disclosures in the notes to financial statements regarding certain costs and expenses.
For prospective Budget franchisees, this means that Budget will be required to provide more detailed disclosures about its costs and expenses in its financial statements starting in 2027. This increased transparency could help franchisees better understand Budget's financial performance and make more informed decisions.
Budget is currently evaluating the impact of adopting this accounting pronouncement on its Consolidated Financial Statements. Early adoption of ASU 2024-03 is permitted on a prospective or retrospective basis, but Budget's current plan is to implement it on the mandatory effective date.