What is Hardees currently doing with respect to the new FASB guidance on income tax disclosures?
Hardees Franchise · 2025 FDDAnswer from 2025 FDD Document
In December 2023, the FASB issued guidance that enhances income tax disclosures including expanded qualitative effective tax rate reconciliation. The standard also requires annual disclosure of income taxes paid disaggregated by federal, state and foreign taxes. The standard is effective for annual reporting periods beginning after December 15, 2024 for public entities. For other entities, the standard is effective for annual reporting periods beginning after December 15, 2025. Early adoption of the guidance is permitted. We are currently evaluating the impact the adoption of this standard will have on our Combined Consolidated Financial Statements.
Source: Item 21 — Financial Statements (FDD pages 84–85)
What This Means (2025 FDD)
According to Hardees's 2025 Franchise Disclosure Document, the Financial Accounting Standards Board (FASB) issued new guidance in December 2023 that enhances income tax disclosures. This includes expanding qualitative effective tax rate reconciliation and requiring annual disclosure of income taxes paid, broken down by federal, state, and foreign taxes.
For public entities, this standard is effective for annual reporting periods beginning after December 15, 2024. For other entities, the standard takes effect for annual reporting periods beginning after December 15, 2025. Early adoption of the guidance is permitted.
Hardees is currently evaluating the impact that adopting this new standard will have on its Combined Consolidated Financial Statements. This means Hardees is still in the process of determining how these new regulations will affect its financial reporting and what changes will be necessary to comply.