Preparing for DISE: 5 Things You Should Consider

What Is DISE?

The Disaggregation of Income Statement Expenses (DISE) is a proposed Accounting Standards Update (ASU) that was issued by the FASB on July 31, 2023. Currently, the proposal is in its comment period, which ends on October 30, 2023, with a public roundtable to be held on December 13, 2023. After this, the FASB will consider all the feedback received and make their final decision about the new guidance, including its effective date.

You Should Know

DISE doesn’t require a change in the expense captions currently used on the face of income statements, but it does increase the number of disclosures that will be required.

We’ve been following the evolving ASU proposal and have compiled further implications and next steps for public and non-public companies alike:

What are the current actions your company should take?

1 | Feedback

Read and understand the proposed guidance and consider participating in the feedback process with the FASB. You can do this by sending comment letters or watching the public forum, which you can stream online while in progress here.

2 | Impact

Look at the detailed disclosures that will be required and think about the impact that it will have on current resources and whether you will need to make any changes to your current processes in order to meet the increased disclosures.

3 | User Needs

Consider the requirements/needs of your own financial statement users and whether applying the guidance from the FASB would enhance the usefulness of your financial statements to those users.

4 | Don’t Ignore

If your organization is non-public, don’t ignore the proposed guidance simply because it’s currently only going to be a requirement for public companies.

5 | IPO Readiness

For private companies entertaining the prospect of an IPO: preparing for DISE now would mitigate the timing and reduce the cost of gathering this information once a decision to go public has formally been made.