Accounting & Reporting Long-Lived Assets

Recently Issued Accounting Standards

In November 2024, the FASB issued ASU 2024-03, which requires the disaggregation of income statement expenses for PBEs. The ASU does not change the expense captions an entity presents on the face of the income statement; rather, it requires disaggregation of certain expense captions into specified categories in tabular disclosures within the footnotes to the financial statements. A “relevant expense caption” subject to disaggregation is any caption on the face of the income statement within continuing operations that includes any of the following natural expenses: (1) purchases of inventory; (2) employee compensation; (3) depreciation; (4) intangible asset amortization; and (5) depreciation, depletion, and amortization recognized as part of oil- and gas-producing activities or other depletion expenses. In addition to these natural expense categories, the tabular disclosure would include certain other expenses, gains, and losses, when applicable, such as (1) impairment losses of long-lived assets held and used and (2) gains or losses recognized in accordance with ASC 360-10-35-37 through 35-45 and ASC 360-10-40-5 for long-lived assets classified as held for sale or disposed of.

Further, ASU 2025-01 (issued in January 2025) amends ASU 2024-03’s effective date “to clarify that all public business entities are required to adopt the guidance in annual reporting periods beginning after December 15, 2026, and interim periods within annual reporting periods beginning after December 15, 2027.”

For more information about ASU 2024-03, see Deloitte’s November 8, 2024 (updated January 21, 2025), Heads Up.