Company: BSFC
Filing Date: 2025-11-12
Form Type: 10-Q
Source: 0001493152-25-021887
Chunk: 17

Company: Blue Star Foods Corp.
Filing Date: 2025-11-12
Form: 10-Q
Item: Part I, Item 1
Chunk 17
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3-09 – Income Taxes (Topic 740)

In
December 2023, the FASB issued ASU 2023-09, Income Taxes (Topic 740): Improvements to Income Tax Disclosures. This ASU aims to enhance
the transparency and usefulness of income tax disclosures by requiring public business entities to provide more disaggregated information
in the effective tax rate reconciliation and for income taxes paid. Key provisions include a requirement for tabular reconciliation using
both percentages and amounts, broken out into specific categories, with certain reconciling items at or above a 5% quantitative threshold
further disaggregated by nature and/or jurisdiction. Additionally, the ASU requires disclosure of income taxes paid (net of refunds received),
disaggregated by federal, state/local, and foreign jurisdictions, and amounts paid to individual jurisdictions that comprise 5% or more
of total income taxes paid. The ASU also eliminates certain existing disclosure requirements related to unrecognized tax benefits and
cumulative unrecognized deferred tax liabilities. For public business entities, the amendments in ASU 2023-09 are effective for annual
periods beginning after December 15, 2024. The Company is currently evaluating the impact of this guidance on its consolidated financial
statements and related disclosures. The Company does not expect this adoption to have a material impact on its consolidated financial
statements.

    13

ASU
2024-03 – Income Statement—Reporting Comprehensive Income—Expense Disaggregation Disclosures (Subtopic 220-40)

In
November 2024, the FASB issued ASU 2024-03, Income Statement—Reporting Comprehensive Income—Expense Disaggregation Disclosures
(Subtopic 220-40): Disaggregation of Income Statement Expenses. This ASU requires public business entities to disclose more detailed
information about certain costs and expenses in the notes to their financial statements, both in annual and interim filings. The objective
is to provide investors with greater transparency into a company’s expense structure, enabling a better understanding of performance,
assessment of future cash flows, and comparison with other entities. Key provisions include the disaggregation, in a tabular format,
of specific natural expense categories such as purchases of inventory, employee compensation, depreciation, and intangible asset amortization,
within each relevant expense caption on the income statement. The ASU also requires disclosure of the total amount of selling expenses
and a qualitative description of expenses remaining in the “other” category. For public business entities, the amendments
are effective for