Company: MSEX
Filing Date: 2025-02-28
Form Type: 10-K
Source: 0001174947-25-000251
Chunk: 1208

Company: MIDDLESEX WATER CO
Filing Date: 2025-02-28
Form: 10-K
Item: Item 7A
Chunk 1208
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 income tax reporting purposes. Deferred income taxes
are provided on differences between the tax basis of assets and liabilities and the amounts at which they are carried in the consolidated
financial statements. Investment tax credits have been deferred and are amortized over the estimated useful life of the related property.
In the event there are interest and penalties associated with income tax adjustments from income tax authority examinations, these amounts
will be reported under interest charges and other expense, respectively. For more information on income taxes, see Note 3 – Income
Taxes.

(o) Cash and Cash Equivalents - For purposes
of reporting cash flows, the Company considers all highly liquid investments with original maturity dates of three months or less to be
cash equivalents. Cash and cash equivalents represent bank balances and money market funds with investments maturing in less than 90 days.

(p) Use of Estimates - Conformity with
GAAP requires management to make estimates and assumptions that affect the reported amounts in the financial statements. Actual results
could differ from those estimates.

(q) Recent Accounting Pronouncements - The recently issued accounting
standards and their impact on the Company as of December 31, 2024 are as follows:

  Standard   Description   Date of Adoption   Application   Effect on the Consolidated 
Financial Statements  Accounting Standards Update (“ASU”) 2023-07 “Improvements to Reportable Segment Disclosures”    The ASU requires disclosure of significant segment expenses, extends certain annual disclosures to interim periods, and additional qualitative disclosures regarding the chief operating decision maker.     The ASU is effective for the Company beginning with its annual financial statements for the year ended December 31, 2024.    Retrospective   The Company adopted ASU 2023-07, including a recast of 2023 and 2022 information, by including additional required disclosures within the Notes to the Consolidated Financial Statements -see Note 8- Reportable Segments.  ASU 2023-09 “Improvements to Income Tax Disclosures”   The ASU amends certain income tax disclosure requirements, including adding requirements to present the reconciliation of income tax expense computed at the statutory rate to actual income tax expense using both percentages and amounts and providing a disaggregation of income taxes paid. Further, certain disclosures are eliminated, including the current requirement to disclose information on changes in unrecognized tax benefits in the next 12 months.   The ASU is effective for the Company beginning with its annual financial statements for the year ending December 31,