Is Precision Door Service permitted to adopt ASU No. 2023-09 early?
Precision_Door_Service Franchise · 2025 FDDAnswer from 2025 FDD Document
In December 2023, the Financial Accounting Standards Board (FASB) issued Accounting Standards Update (ASU) No. 2023-09, "Income Taxes (Topic 740): Improvements to Income Tax Disclosures," (ASU No. 2023-09) which requires disclosure of disaggregated information about a reporting entity's effective tax rate reconciliation as well as disclosures on income taxes paid by jurisdiction. ASU No. 2023-09 is effective for annual periods beginning after December 15, 2024. The guidance is required to be applied on a prospective basis, with the option to apply the standard retrospectively. Early adoption is permitted. Management is currently evaluating the impact of this guidance on the Company's consolidated financial statements and related disclosures.
Source: Item 21 — Financial Statements (FDD page 91)
What This Means (2025 FDD)
According to Precision Door Service's 2025 Franchise Disclosure Document, the Financial Accounting Standards Board (FASB) issued Accounting Standards Update (ASU) No. 2023-09 in December 2023. This update, titled "Income Taxes (Topic 740): Improvements to Income Tax Disclosures," necessitates the disclosure of disaggregated information concerning a reporting entity's effective tax rate reconciliation, along with disclosures on income taxes paid by jurisdiction.
ASU No. 2023-09 is slated to take effect for annual periods commencing after December 15, 2024. The guidance must be applied on a prospective basis, although there is an option to apply the standard retrospectively.
Importantly, Precision Door Service is permitted to adopt this standard early. Currently, the management of Precision Door Service is in the process of evaluating the potential impact of this guidance on the company's consolidated financial statements and related disclosures.