March experienced a flurry of activities in standard setting. The FAF issued the first ever PCC Annual Report which highlights the work done by the PCC on behalf of private companies. The FASB met with several of its advisory committees (NAC, PCC, and EITF). While no standards were issued the Board voted to ballot Determining the Accounting Acquirer in the Acquisition of a Variable Interest Entity, Hedge Accounting Improvements and Measurement of Credit Losses for Accounts Receivable and Contract Assets for Private Companies and Certain Not-for-Profit Entities which likely means a flurry of standards are forthcoming.
On March 10, the AICPA’s Professional Ethics Executive Committee (PEEC) issued a discussion memorandum seeking public input on potential revisions to the AICPA Code of Professional Conduct. The memorandum focuses on enhancing independence guidance for alternative practice structures (APS), particularly those involving private equity investments. It explores key ethical considerations, aiming to improve clarity and consistency in applying independence standards to evolving APS models. Given the increasing role of private equity in accounting firms, the memorandum outlines preliminary conclusions, identifies key independence threats, and presents two proposed options for authoritative and nonauthoritative guidance. Stakeholders are encouraged to submit comments by June 15, 2025.
The GASB released its study on GAAP utilization, showing that 100% of states, 74% of counties, and 71% of municipalities issue GAAP-based financial statements. At its March 2025 meeting, the Board approved the Preliminary Views document on Going Concern and Severe Financial Stress. This document has now been released for public comment, with a deadline of June 30, 2025. The Board also reviewed 24 comment letters on the proposed 2025 Implementation Guidance Update—several Q&As will be revised for clarity and cross-referencing, while three will be removed. Final issuance is targeted for mid-2025.
The Auditing Standards Board (ASB) has released its proposed strategic plan for 2026–2030, and they’re inviting public input through June 13, 2025. Building on its current priorities—quality, responsiveness, and alignment with international standards—the ASB outlines five key initiatives focused on high-quality standard setting, stakeholder engagement, strategic operations, relevance in a changing landscape, and effective implementation support. With evolving technologies, increasing complexity, and growing demand for assurance on topics like sustainability and cybersecurity, the ASB is looking for feedback to help shape its standard-setting agenda in the years ahead. Catherine “Halie” Creps has been selected as the next chair of the ASB replacing Sara Lord). In addition, ARSC approved the issuance of SSARS 27, Applicability of AR-C section 70 to Financial Statements Prepared as Part of a Consulting Services Engagement, which will help those performing CAAS engagements move them to the consulting standards which ultimately removes them from the requirements of Quality Management.
