What is Checkers' management currently reviewing regarding the adoption of the ASU 2023-09 accounting standard?
Checkers Franchise · 2025 FDDAnswer from 2025 FDD Document
In December 2023, the Financial Accounting Standards Board ("FASB") issued Accounting Standards Update ("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 for reporting periods beginning after December 15, 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, management is currently reviewing the impact of adopting ASU 2023-09, Improvements to Income Tax Disclosures, on the company's consolidated financial statements. This standard, issued by the Financial Accounting Standards Board (FASB) in December 2023, mandates more detailed information regarding a reporting entity's effective tax rate reconciliation and data on income taxes paid.
The ASU 2023-09 standard is designed to provide investors with more detailed income tax disclosures to aid in capital allocation decisions. The new requirements will be effective for annual periods beginning after December 15, 2025. Checkers will adopt this standard for reporting periods beginning after this date.
The guidance can be applied prospectively or retrospectively. Prospective application means the new standard is applied to events and transactions occurring after the effective date. Retrospective application involves applying the new standard to prior periods as if it had always been in effect, which provides comparative financial information. Checkers' management is evaluating how this adoption will affect their financial reporting, ensuring compliance and providing investors with the required disclosures.