Company: BOF
Filing Date: 2025-11-12
Form Type: 10-Q
Source: 0001493152-25-021655
Chunk: 17

Company: BranchOut Food Inc.
Filing Date: 2025-11-12
Form: 10-Q
Item: Item 1
Chunk 17
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3-09, “Income Taxes (Topic 740): Improvements to Income Tax Disclosures”. The
amendments in this ASU add specific requirements for income tax disclosures to improve transparency and decision usefulness. The guidance
in ASU 2023-09 requires that public business entities disclose specific categories in the income tax rate reconciliation and provide
additional qualitative information for reconciling items that meet a quantitative threshold. In addition, the amendments in ASU 2023-09
require that all entities disclose the amount of income taxes paid disaggregated by federal, state, and foreign taxes and disaggregated
by individual jurisdictions. The ASU also includes other disclosure amendments related to the disaggregation of income tax expense between
federal, state and foreign taxes. For public business entities, the amendments in this update are effective for annual periods beginning
after December 15, 2024. Early adoption is permitted for annual financial statements that have not yet been issued or made available
for issuance. The amendments in this update should be applied on a prospective basis and retrospective application is permitted. The
Company does not expect a material impact to its financial position, results of operations, or cash flows from adoption of this guidance.

In
November 2024, the FASB issued Accounting Standards Update (“ASU”) 2024-03 and in January 2025, the FASB issued ASU 2025-01,
“Income Statement - Reporting Comprehensive Income -Expense Disaggregation Disclosures (Subtopic 220-40): Disaggregation of
Income Statement Expenses.” The guidance requires disclosures about specific expense categories, including but not limited
to, purchases of inventory, employee compensation, depreciation, amortization and selling expenses. The ASU is effective in the first
annual reporting period beginning after December 15, 2026, and for interim periods within annual reporting periods beginning after December
15, 2027. The Company is currently assessing the effect that adoption of this guidance will have on its Consolidated Financial Statements.

In
July 2025, the FASB issued ASU No. 2025-05, “Financial Instruments—Credit Losses (Topic 326): Measurement of Credit Losses
for Accounts Receivable and Contract Assets” (“ASU 2025-05”) which provides a practical expedient for all entities
related to the estimation of expected credit losses for current accounts receivable and current contract assets that arise from transactions
accounted for under Topic 606. ASU