News built for finance pros
CFO Brew helps finance pros navigate their roles with insights into risk management, compliance, and strategy through our newsletter, virtual events, and digital guides.
All public companies need to comply with Accounting Standards Update No. 2024-03—popularly known as the Disaggregation of Income Statement Expenses or DISE—on their annual financial statements for reporting periods starting after December 15, 2026, the FASB stated in a recent update.
The standard was released in November 2024. Since that time, FASB has realized its wording may have been confusing to some companies. (An accounting standard that’s difficult to interpret? We’re shocked!) In particular, companies that didn’t use a calendar year-end thought they might have needed to comply with DISE in their first interim or quarterly statements following December 15, 2026. But that wasn’t FASB’s intent.
In its update, FASB noted that all public companies, regardless of the calendar they use, must comply with DISE on annual statements for reporting periods starting after December 15, 2026, and on interim statements for reporting periods starting after December 15, 2027.
That news will likely come as a relief to some companies, as DISE compliance is, in the words of FASB Chair Rich Jones, a “significant lift.” The standard requires companies to disclose additional information on certain expenses such as employee compensation, inventory purchases, depreciation, and amortization of intangible assets.