Recently Adopted and Recently Issued Accounting Standards

12 Months Ended

Dec. 31, 2022

Accounting Changes and Error Corrections [Abstract]

Recently Adopted and Recently Issued Accounting Standards

Recently Adopted and Recently Issued Accounting Standards

The following accounting standards were adopted in 2022:

On January 1, 2022, the Company adopted changes issued by the FASB which improved the transparency of government assistance received by entities. The adoption of these changes did not have a material impact on the Company's consolidated financial statements.

As of December 31, 2022, the Company adopted changes issued by the FASB which provided companies with optional guidance to ease the potential accounting burden associated with transitioning from reference rates that are expected to be discontinued, particularly the cessation of LIBOR. The adoption of these changes did not have a material impact on the Company's consolidated financial statements.

The following accounting standards have been issued and become effective for the Company at a future date:

In October 2021, the FASB issued changes clarifying that an acquirer of a business should recognize and measure contract assets and contract liabilities in a business combination in accordance with accounting standards governing revenue from contracts with customers. Prior guidance required acquired contract assets and contract liabilities to be measured at fair value on the acquisition date. The changes become effective January 1, 2023. The adoption of these changes does not have an immediate impact on the Company's consolidated financial statements, but will be applied prospectively to any future business combinations.

In September 2022, the FASB issued changes that require a buyer in a supplier finance program, also referred to as reverse factoring, payables finance, or structured payables arrangements, to disclose sufficient information about the program to allow a user of financial statements to understand the program’s nature, activity during the period, changes from period to period, and potential magnitude, by disclosing qualitative and quantitative information about the program. The changes become effective January 1, 2023, generally with retrospective application to each period in which a balance sheet is presented. Other than potential required expanded disclosures, the adoption of these changes will not have a material impact on the Company's consolidated financial statements.