For entities other than public entities, when is the standard effective that enhances income tax disclosures, including expanded qualitative effective tax rate reconciliation, for Hardees?
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 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, new accounting standards regarding income tax disclosures will soon take effect. Specifically, in December 2023, the Financial Accounting Standards Board (FASB) issued guidance to enhance income tax disclosures. This includes an expanded qualitative effective tax rate reconciliation, along with the annual disclosure of income taxes paid, broken down by federal, state, and foreign taxes.
For public entities, these standards are effective for annual reporting periods beginning after December 15, 2024. However, Hardees, as an entity other than a public entity, will be required to adopt these standards for annual reporting periods beginning after December 15, 2025.
The 2025 FDD indicates that early adoption of this guidance is permitted, and Hardees is currently evaluating the impact the adoption of this standard will have on its Consolidated Financial Statements. This means that Hardees has the option to implement these changes sooner if they choose to do so.