Accounting Pronouncements |
6 Months Ended |
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Jun. 30, 2026 | |
| Accounting Pronouncements | |
| Accounting Pronouncements | 2. Accounting Pronouncements Recently Adopted Accounting Standards Measurement of Credit Losses for Accounts Receivable and Contract Assets In 2025, amended guidance was issued by the FASB with the goal of improving efficiencies associated with the measurement of credit losses for accounts receivable and contract assets by allowing entities to elect a practical expedient for measurement. The company applied the practical expedient prospectively beginning in the first quarter of 2026, the adoption did not have a material impact on its consolidated financial statements. New Accounting Guidance and Disclosure Requirements Environmental Credits and Environmental Credit Obligations In 2026, new guidance was issued by the Financial Accounting Standards Board (FASB) with the goal to improve the financial accounting for and disclosure of environmental credits and environmental credit obligations. The company is assessing the impact that the adoption of this new guidance will have on its consolidated financial statements and expects to adopt the guidance on a retrospective basis, as detailed in the standard, in 2028. Hedge Accounting Improvements In 2025, new guidance was issued by the Financial Accounting Standards Board (FASB) with the goal of improving hedge accounting via five targeted improvements. The company is assessing the impact that the adoption of this new guidance will have on its consolidated financial statements and expects to adopt the guidance on a prospective basis in 2027. Improvements to Accounting for Internal-Use Software In 2025, new guidance was issued by the FASB with the goal to better align accounting with how internal-use software is developed. The company is assessing the impact that the adoption of this new guidance will have on its consolidated financial statements and expects to adopt the guidance on a prospective basis in 2028. Disaggregation of Income Statement Expenses In 2024, new guidance was issued by the FASB with the goal of providing financial statement users with more expense information of certain categories of expenses that are included in line items on the face of the statements of earnings. The company is assessing the impact that the adoption of this new guidance will have on its consolidated financial statements and expects to meet the disclosure requirements on a prospective basis in its 2027 annual report and interim periods thereafter.
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