| New Accounting Pronouncements |
Note 2: New Accounting Pronouncements The FASB and, to a lesser extent, other authoritative rulemaking bodies promulgate GAAP to regulate the standards of accounting in the United States. From time to time, the FASB issues new GAAP standards (known as ASUs), some of which, upon adoption, may have the potential to change the way in which the Company recognizes or reports within its consolidated financial statements. The following table provides a description of the accounting standards that are not currently effective but could have an impact on the Company's consolidated financial statements upon adoption.
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Standards Not Yet Adopted as of June 30, 2026 |
Standard |
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Description |
Required Date
of Implementation |
Effect on Consolidated Financial Statements |
Income Statement ASU 2024-03 (Subtopic 220-40): Disaggregation of Income Statement Expenses |
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ASU 2024-03 was issued to address requests from investors for more detailed information about the types of expenses in commonly presented income statement captions. The ASU requires new financial statement disclosures, disaggregating certain expense categories, such as compensation, depreciation, and amortization of intangible assets. This disaggregation is to be presented in a tabular format and aims to provide enhanced transparency into the relevant components of income statement expenses. |
Fiscal years beginning after December 15, 2026, and interim periods within fiscal years beginning after December 15, 2027. |
Management is evaluating the adoption of the ASU but does not expect it will have a material impact to the Company's consolidated financial statements. |
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Financial Instruments - Credit Losses ASU 2025-08 (Topic 326): Purchased Loans |
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ASU 2025-08 simplifies accounting for acquired loans under CECL framework by expanding use of the gross-up method to a new category of purchased seasoned loans ("PSLs"). PSLs are acquired loans purchased more than 90 days after origination (or acquired in a business combination) when the acquirer was not involved in origination. For PSLs, an ACL is recorded at acquisition with an equal increase to amortized cost, eliminating Day 1 credit loss expense. Excludes credit cards, Topic 606 trade receivables, and debt securities. |
The amendments in this update are effective for all entities for annual reporting periods beginning after December 15, 2026, and interim reporting periods within those annual reporting periods. |
Management is currently evaluating the impact of adopting this guidance on the Company's consolidated financial statements. |
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Derivatives and Hedging ASU 2025-09 (Topic 815): Hedge Accounting Improvements |
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Provides targeted updates including a new “similar risk exposure” criterion for grouping forecasted transactions in cash flow hedges, an optional model for hedging forecasted interest payments on choose-your-rate debt, expanded eligibility to hedge price components and subcomponents of nonfinancial forecasted transactions using the clearly-and-closely-related principle, revised eligibility for certain compound derivatives containing written options, and corrected effectiveness assessment for dual hedges involving foreign-currency-denominated debt. |
Public business entities are required to apply this guidance to annual reporting periods beginning after December 15, 2026, and interim periods within those annual reporting periods. |
Management is currently evaluating the impact of adopting this guidance on the Company's consolidated financial statements. |
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Codification Improvements ASU 2025-12 |
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Makes targeted technical corrections and clarifications across the codification to address unintended application, outdated references, and minor inconsistencies. The ASU affects 33 issues spanning multiple topics, including EPS, beneficial interests, receivables, transfers and servicing, and not-for-profit accounting, and generally is not expected to significantly change current practice. |
The amendments in this update are effective for all entities for annual reporting periods beginning after December 15, 2026, and interim reporting periods within those annual reporting periods. |
Management is currently evaluating the impact of adopting this guidance on the Company's consolidated financial statements. |
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