Calendar year-end SEC filers other than smaller reporting companies (SRCs), as defined by the SEC, were required to adopt ASU 2018-12 on January 1, 2023 for annual and interim periods. Other calendar year-end entities will be required to adopt the ASU on January 1, 2025 for annual periods and on January 1, 2026 for interim periods. Early application is permitted.

If early application is not elected, the transition date will be the beginning of the earliest period presented. To facilitate early application, an early adopter may elect that the transition date be either the earliest period presented or the beginning of the prior period presented to align the early application transition date with the standard transition date for SEC filers. For example, a non-SEC filer that early adopts on January 1, 2023 may elect a transition date of January 1, 2021 if it chooses to present three comparative income statements. Alternatively, that entity may elect a transition date of January 1, 2022.

The one-time determination of whether an entity is eligible to be an SRC is based on an entity’s most recent determination under SEC regulations as of November 15, 2019.