NFLX · 10-Q · 2026Q3 · Full report

New Accounting Standards

NETFLIX INC · 2026-10-21 · Importance 22 · Surprise 42

FASB ASU 2024-03 will require additional interim and annual disaggregation disclosures for specific income-statement expense categories. The standard is effective for fiscal years beginning after December 15, 2026, and interim periods beginning after December 15, 2027, with early adoption permitted; Netflix is evaluating its impact. FASB ASU 2025-10 establishes recognition, measurement, presentation, and disclosure requirements for government grants and applies for fiscal years beginning after December 15, 2028. FASB ASU 2025-11 improves interim-reporting requirements and becomes effective for fiscal years beginning after December 15, 2027.

Key facts

• The Company completed a ten-for-one forward stock split on November 14, 2025; each shareholder as of the record date of November 10, 2025 received nine additional shares for every share held and share and per share amounts have been retroactively adjusted. source
• There have been no material changes to the Company’s critical accounting estimates included in our Annual Report on Form 10-K for the year ended December 31, 2025. source
• Note 1, “Basis of Presentation and Summary of Significant Accounting Policies” of the Notes to consolidated Financial Statements in Part I, Item 1 of this Form 10-Q and in the Notes to Consolidated Financial Statements in Part II, Item 8 of our Annual Report on Form 10-K for the year ended December 31, 2025, describe the significant accounting policies and methods used in the preparation of the Company’s consolidated financial statements. source