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STANDARDS TRACKER |
STANDARDS TRACKER
FASB ASU 2024-03: disaggregation of income statement expenses (DISE)
DISE adds a new expense footnote table to every public company's annual report starting with fiscal 2027 - and the data-gathering work is due now.
FASB ASU 2024-03, commonly called DISE, requires public business entities to disclose additional information in footnotes about specified categories of expenses included in income statement captions. Per EisnerAmper's October 2026 guide, required disaggregated amounts include employee compensation, depreciation, amortization, and inventory purchases. The income statement face itself does not change.
BY THE NUMBERS
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See below EFFECTIVE |
1 SOURCE TRACKED |
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Oct 8 LAST UPDATED |
FASB ISSUER |
EisnerAmper's guide identifies DISE as the biggest change affecting all public companies in the 2027 cycle and flags it as applying broadly across industries - not to a subset. The standard may require changes to disclosures, accounting policies, systems, and controls, and EisnerAmper notes that CFOs and CAOs who are not prepared may find catching up during 2027 difficult.
For calendar-year public companies, the annual disclosure requirement hits the fiscal 2027 annual report. The interim requirement follows one year later. EisnerAmper's guide places DISE at the top of implementation complexity rankings because it applies broadly to public companies and may require changes to systems, chart of accounts, reporting packages, or manual data aggregation processes.
The practical close-team problem is data capture, not accounting judgment. DISE does not change how expenses are recognized or measured - it changes how granular the supporting data trail must be. Close teams that rely on summarized journal entries or cost-center rollups may need to rework how natural expense categories flow through the general ledger before fiscal 2027 opens.
No further amendments are noted as pending in the EisnerAmper guide as of October 2026.
WHAT TO DO IN THE CLOSE
| Map every income statement caption that includes employee compensation, depreciation, amortization, or inventory purchases to its source data. | |
| Confirm your GL or ERP can tag transactions by natural expense category at the journal-entry level before Jan. 1, 2027. | |
| Decide prospective vs. retrospective transition now; retrospective requires 2025 and 2026 natural-expense data collected today. | |
| Engage your auditors on the new footnote template and what supporting workpapers they will expect for fiscal 2027. | |
| If your fiscal year does not end December 31, recheck your specific annual and interim adoption dates with your technical accounting team. |
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QUESTIONS THIS ANSWERS
Does DISE apply to private companies?
Per EisnerAmper's October 2026 guide, ASU 2024-03 (DISE) applies to public business entities. Private companies are not required to follow it.
Does DISE change the face of the income statement?
No. Per EisnerAmper's guide, the standard adds new footnote disclosures but does not change how expense captions appear on the face of the income statement or alter expense recognition and measurement rules.
What expense categories must be disaggregated under ASU 2024-03?
EisnerAmper's October 2026 guide lists employee compensation, depreciation, amortization, and inventory purchases among the required disaggregated amounts disclosed in the footnotes.
SOURCES
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A living page: it is re-read and updated as coverage arrives; last updated Thursday October 8. Facts come from the linked sources; confirm against the issuer's own text before relying on it.
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