Beyond the Line Item: Inside the Natural Expense Categories of DISE
From Accounting Matters by Embark
March 31, 2026 · 31 min · Episode 86
About this episode
This episode delves into the technical details of natural expense categories and their classifications in DISE.
If Episode 1 covered the "why" behind DISE, Episode 2 is where theory meets practice. Embark's Nicole Harger and Adam Olsen get into the technical details of all five required natural expense categories, working through the tricky classification questions companies are already bringing to their teams. This is the episode to bookmark when your client asks, "But where exactly does that go?" In this episode: The difference between natural and functional expense classification, and why it matters for your disclosure Purchases of inventory: what's included, what's excluded, and how intercompany transactions and inbound freight factor in Cost-incurred vs. expense-incurred basis: what each means and why most companies will elect cost-incurred Employee compensation: the ASC 718 definition of "employee," how to handle contractors and leased workers, and a practical approach to mixed workforces Depreciation and intangible asset amortization: how to handle finance lease ROU assets, internal-use software, and the costs that look like amortization but aren't DD&A for extractive industries, plus special considerations for asset-related costs, liability-related expenses, and reimbursement…
People in this episode
Hosts: Nicole Harger, Adam Olsen
Topics covered
- natural expense categories
- expense classification
- employee compensation
- depreciation
- selling expenses
Keywords
- natural expense categories
- expense classification
- employee compensation
- depreciation
- selling expenses
- cost-incurred
- inventory purchases
Mentioned in this episode
Organizations: ASC, DISE
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- Beyond the Line Item: Why DISE Changes Everything · March 31, 2026 · 34 min
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