For the first time in a LONG time, there are no exposure drafts currently open for comment from the FASB! However, an exposure draft is expected in the very near future! We are also expecting SEVEN new ASUs before the end of the year! The FASB already issued ASU 2025-06, updating the software guidance and modernizing it for current practice, as well as ASU 2025-07, which modifies the scope of the derivatives guidance, reducing the number of derivatives when applied this month. 2025 is looking to make its mark on financial reporting!
GASB had a packed September, moving major projects closer to the finish line. Regarding revenue and expense recognition, the Board agreed that governments can measure progress using inputs, outputs, time, or other reasonable methods, provided that these methods are consistent and remeasured each period. The subsequent events project is nearly wrapped, with scope, disclosures, and transition settled, and a pre-ballot draft on the way. The Board also fine-tuned its definition of infrastructure assets, clarifying how buildings and networks should be treated. Plenty of progress this month as these standards head toward final stages!
The ARSC did not meet this month, but is scheduled to meet at the end of October. The ASB did meet in September and discussed both their attestation and confirmation exposure drafts. Both meetings were focused on feedback received from various comment letters. Stay tuned to see if final versions are released later this year!
PEEC was very busy this September! On September 15, PEEC issued an exposure draft proposing revisions to the “Tax Services” interpretation (ET §1.295.160). The proposal, which aligns more closely with international ethics standards, addresses independence concerns when members provide tax advisory or planning services to attest clients. Rather than adopting the “more likely than not” threshold included in the June 2024 draft, PEEC is now proposing a principles-based approach. The comment period on the exposure draft is open through December 15, 2025. Additionally, on September 16, PEEC released new guidance on simultaneous employment, introducing a revised definition of “simultaneously employed or associated” (ET §0.400.49) and a new interpretation, “Simultaneously Employed or Associated With an Attest Client” (ET §1.275.005). The guidance prohibits covered members from any simultaneous employment or association with an attest client and prevents partners or professional employees from holding key positions at an attest client, subject to limited exceptions. The new guidance, which updates standards first issued more than 20 years ago, reflects modern work practices and will take effect on September 15, 2026.
We are still anxiously waiting for the issuance of the 2025 Compliance Supplement. The draft remains available from the AICPA’s GAQC. However, the AICPA has indicated that auditors should NOT issue any reports until a final supplement is issued.
NASBA and the AICPA issued proposed changes to the CPE rules. Comments are requested by December 16, 2025.
