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 relief