When will Checkers adopt the FASB's ASU 2023-09 standard, Improvements to Income Tax Disclosures?
Checkers Franchise · 2025 FDDAnswer from 2025 FDD Document
In December 2023, the FASB issued ASU 2023-09, Improvements to Income Tax Disclosures. The standard requires disaggregated information about a reporting entity's effective tax rate reconciliation as well as information on income taxes paid. The standard is intended to benefit investors by providing more detailed income tax disclosures that would be useful in making capital allocation decisions. The new requirements will be effective for annual periods beginning after December 15, 2025. The guidance will be applied on a prospective basis with the option to apply the standard retrospectively. The Company will adopt this standard on December 30, 2025. Management is currently reviewing the impact of the adoption of this accounting standard on the Company's consolidated financial statements.
Source: Item 21 — FINANCIAL STATEMENTS (FDD page 91)
What This Means (2025 FDD)
According to Checkers' 2025 Franchise Disclosure Document, Checkers will adopt FASB's ASU 2023-09, Improvements to Income Tax Disclosures on December 30, 2025. This standard necessitates disaggregated information concerning a reporting entity's effective tax rate reconciliation, along with details on income taxes remitted.
The purpose of this standard is to enhance the information available to investors by offering more comprehensive income tax disclosures. These disclosures are intended to aid investors in making well-informed capital allocation decisions.
The new requirements will be effective for annual periods beginning after December 15, 2025. The guidance will be applied on a prospective basis with the option to apply the standard retrospectively. Management is currently reviewing the impact of the adoption of this accounting standard on the Company's consolidated financial statements.