Q1 2025 in Review
In our Q1 2025 in Review Blog, we look at the standard setting activities of the FASB, GASB and AICPA. The first quarter had a flurry of activities with promises of more standards coming down the pike. This is a great way to keep up to date during busy season without getting in the weeds!
2025 AICPA Regional Council & UAA Exposure Draft
In this week’s blog, we take a closer look at the UAA Exposure Draft and the recent AICPA Regional Council Meeting. The AICPA hosted four Regional Council Meetings across the country, with each location bringing together different state council members. The discussions were engaging, energizing, and focused on the future of the CPA profession.
FASB Issues ITC on KPIs
On November 14, 2024, the Financial Accounting Standards Board (FASB) issued an Invitation to Comment (ITC) on Financial Key Performance Indicators (KPIs) for Business Entities. This ITC is part of the FASB’s ongoing research project focused on KPIs, aiming to gather feedback on potential standard-setting in this area.
Proposed ASU on Environmental Credits (Topic 818)
Accounting for environmental credits has been a gray area for years, but FASB is looking to bring some structure with its latest proposed update (Topic 818). The goal? Standardizing how companies recognize and measure these credits and obligations in financial statements.
FASB ITC – 2025 Agenda Consultation
The FASB has issued an Invitation to Comment for a 2025 Agenda Consultation. Similar to the 2021 Consultation, the FASB is proposing a variety of potential future projects and is looking for your help to prioritize them! Comments are due June 30, 2025.
Proposed ASU on Interim Reporting (Topic 270)
The FASB has proposed updates to Interim Reporting (Topic 270) to improve clarity and ensure users understand when and how the guidance applies. While these changes do not fundamentally alter interim reporting requirements, they enhance navigability, disclosure clarity, and consistency across entities. All entities providing interim financial statements under GAAP, including SEC registrants and non-registrants should check to see what impacts the new guidance could have on your process. Submit your comments by March 31, 2025.
AICPA Ethics: Simultaneous Employment Proposal
On December 16, 2024 the AICPA’s Professional Ethics Executive Committee (PEEC) issued proposed revisions related to simultaneous employment or association with an attest client. Key changes from this exposure draft include a new definition of being simultaneously employed or associated with the client, as well as the addition of a new exception to the rules for USERRA/compliance with employment laws. In addition, the proposed revised interpretation uses both a rules-based approach and a principles-based approach in making determinations regarding independence. Comments are due March 16, 2025.
FASB Proposes Changes to Grant Accounting for Businesses
The FASB has proposed new accounting guidance for business entities that receive government grants. ASU 2018-08 explicitly excludes transfers of assets from government entities to business entities from the contributions received guidance in 958. During COVID, this left for-profit entities without clear guidance on handling various government grants. The exposure draft provides recognition, measurement, presentation, and disclosure guidance for governmental entities, which more closely aligns with IAS 20 than nonprofit GAAP. Comments are due March 31, 2025.
Disclaimer: The information contained within this blog is provided for informational purposes only. Viewing this material does not qualify for CPE credit. Additionally, this general knowledge is not intended to substitute for obtaining accounting, legal, or financial advice from a professional accountant with specific knowledge of your organization. Finally, watching this blog and/or subscribing to the newsletter do not create an accountant-client relationship.
