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18) New Accounting Pronouncements
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In July 2025, the FASB issued ASU No.
2025-05, Financial Instruments - Credit Losses (Topic 326): Measurement of Credit Losses for Accounts Receivable and Contract Assets.
The amendments in this update provide a practical expedient permitting an entity to assume that conditions at the balance sheet date remain
unchanged over the life of the asset when estimating expected credit losses for current classified accounts receivable and contract assets.
We adopted this ASU on a prospective basis effective January 1, 2026. While this ASU was adopted, we did not elect practical expedient
permitted under this ASU. Therefore, the adoption has no impact on our consolidated financial statements.
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i. |
ASU No. 2025-06. In September 2025, the FASB issued ASU No. 2025-06, “Intangibles - Goodwill and Other
- Internal-Use Software (Subtopic 350-40): Targeted Improvements to the Accounting for Internal-Use Software,” which is intended
to modernize internal-use software guidance by removing all references to project stages and by clarifying the thresholds entities apply
to begin capitalizing costs. ASU No. 2025-06 is effective for fiscal years beginning after December 15, 2027, and interim periods within
those annual reporting periods. Early adoption is permitted. The guidance can be applied on a prospective basis, a modified basis for
in-process projects, or a retrospective basis. We are currently evaluating the impact of the standard on our consolidated financial statements. |
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ASU No. 2024-03. In November 2024, the FASB issued ASU No. 2024-03, “Income Statement - Reporting Comprehensive
Income - Expense Disaggregation Disclosures (Subtopic 220-40): Disaggregation of Income Statement Expenses,” which is intended
to improve disclosures about a public business entity’s expenses by requiring disaggregated disclosure, in the notes to the financial
statements, of prescribed categories of expenses within relevant income statement captions. ASU No. 2024-03 is effective for fiscal years
beginning after December 15, 2026, and interim periods within fiscal years beginning after December 15, 2027. Early adoption is permitted.
The new standard may be applied either on a prospective or retrospective basis. We are currently evaluating the impact of the standard
on our consolidated financial statement disclosures. |
Recent accounting pronouncements adopted
or pending adoption not discussed above are either not applicable or are not expected to have a material impact on our consolidated financial
condition, results of operations, or cash flows.
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