What is Remax's assessment of the potential impact of ASU 2023-09 on its consolidated financial statements?
Remax Franchise · 2025 FDDAnswer from 2025 FDD Document
In December 2023, the FASB issued ASU 2023-09, Income Taxes (Topic 740) – Improvements to Income Tax Disclosures, which requires greater disaggregation of income tax disclosures related to the income tax reconciliation and income taxes paid. The amendments improve the transparency of income tax disclosures by requiring (1) consistent categories and greater disaggregation of information in the rate reconciliation and (2) income taxes paid disaggregated by jurisdiction. The new standard is effective for annual periods beginning after December 15, 2024, and early adoption is permitted. The Company believes the amendments of ASU 2023-09 will not have a significant impact on the Company's consolidated financial statements and will include all required disclosures upon adoption.
Source: Item 1 — Business and Organization (FDD pages 334–464)
What This Means (2025 FDD)
According to Remax's 2025 Franchise Disclosure Document, the Financial Accounting Standards Board (FASB) issued ASU 2023-09, titled 'Income Taxes (Topic 740) – Improvements to Income Tax Disclosures' in December 2023. This update mandates a more detailed breakdown of income tax disclosures, specifically concerning income tax reconciliation and taxes paid, aiming to enhance transparency. The new standard necessitates consistent categories and greater detail in the rate reconciliation, along with a breakdown of income taxes paid by jurisdiction.
Remax believes that the amendments introduced by ASU 2023-09 will not significantly impact the company's consolidated financial statements. The standard is effective for annual periods beginning after December 15, 2024, and early adoption is permitted.
Remax plans to incorporate all required disclosures upon adopting ASU 2023-09. This suggests that while there will be increased reporting requirements, Remax does not anticipate any material changes to its financial results or operations as a result of this new accounting standard.