ASU 2024-03 (DISE): An Important SEC Disclosure Change with Enterprisewide Implications

A new SEC disclosure change is prompting public companies to rethink how they present expense information. Instead of treating it as a narrow compliance exercise, organizations should see it as a chance to strengthen transparency, improve comparability, and create more audit-ready reporting. With the effective date approaching, now is the time to assess whether data is detailed enough, systems are connected, allocation methods, are consistent and controls are strong. Success will depend on close coordination across finance, IT, HR and procurement, along with disciplined governance, clear documentation and sound technical judgment.

Key Takeaways:

• Requires structured, tabular disaggregation of expense categories
• Demands readiness in data, systems, processes and controls
• Favors repeatable, less manual reporting methods
• Delivers benefits beyond compliance, including better analysis and comparability