Beyond the Line Item: Why DISE Changes Everything

About this episode

This episode discusses the new DISE standard and its implications for public companies' financial reporting.

The FASB just issued new guidance that will fundamentally change how public companies communicate about their cost structure. In the first episode of a three-part series, Embark's Nicole Harger and Adam Olsen break down ASU 2024-03, the Disaggregation of Income Statement Expenses (DISE) standard, and why companies need to start preparing now, even with a 2027 effective date on the horizon. This episode covers the foundation: the investor demand driving the standard, who it applies to, and what "relevant expense captions" actually mean for your financial reporting. In this episode: Why the FASB issued DISE and how it fits into a broader expense transparency initiative (alongside ASU 2023-07 and ASU 2023-09) Who is in scope: all public business entities, including broker-dealers, IPO-stage companies, and private companies whose financials appear in SEC filings Effective dates: annual periods beginning after December 15, 2026; interim periods beginning after December 15, 2027 What goes into the tabular footnote disclosure, including the five required natural expense categories How to identify relevant expense captions, and the key exceptions and practical expedients that offer some…

People in this episode

Hosts: Nicole Harger, Adam Olsen

Topics covered

• DISE standard
• financial reporting
• cost structure
• investor demand
• expense transparency
• public companies

Keywords

• Disaggregation of Income Statement Expenses
• FASB
• public business entities
• expense captions
• financial disclosures
• effective dates

Mentioned in this episode

Organizations: FASB, SEC

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