Proposed Concept Statement: Chapter 2: The Reporting Entity
While the FASB continues to work on updating GAAP, they have also been diligently working on filling in the gaps in the conceptual framework. This proposal would add chapter 2 to the framework and provides guidance on what is the reporting entity for financial reporting purposes. It address the concepts of parent only, combined, and consolidated financial statements. Comments are due January 16, 2023.
Proposed Changes to Segment Reporting
After its post-implementation review, the FASB has proposed some updates to the current segment reporting requirements including requiring those entities with only one segment to provide disclosures. It also expands annual disclosures to interim reporting. Segment reporting is currently only required for public companies and the proposal continues that scope. Comments are due in December 2022.
Ethics Technical Correction: 529 Plans
The initial guidance for 529 plans was issued back in 2005. Since then, there has been significant changes to how plans are run. The AICPA’s Professional Ethics Executive Committee had received feedback and in the Work Plan looked at reevaluating the area. In September 2022, they issued a technical correction to make the safeguard easier to apply for holders of 529 plan investments.
Q3 2022 in Review
Quarter 3 of 2022 is in the books. We’ll review the accounting and auditing (and ethics) standards issued by standard setters this quarter.
GAO: Government Efficiency and Effectiveness Report
GAO has issued their annual report about ways the federal government can reduce inefficiencies and redundancy across a wide variety of programs and departments. The report gives a status update on the 1,299 actions GAO has recommended since 2011 to address billions of dollars in inefficient and duplicative spending.
2022 FASB Investor Outreach Report
The FASB has issued their 2022 Investor Outreach Report detailing their interactions with investors throughout the 7/1/21 – 6/30/22 period. It provides details on the advisory groups with investors as well as the feedback from the ITC for agenda consultation.
Revised Statements on Standards for Tax Services Proposal
The AICPA’s Tax Executive Committee has proposed changes to the Statements of Standards for Tax Services (SSTSs). The proposal has two parts. Part 1 is an Exposure Draft of proposed revisions to the SSTSs. Part 2 is an Invitation to Comment on how the AICPA could potentially introduce quality management in the tax realm. Comments are due by December 31.
Investments in Tax Credit Structures
FASB has issued a niche proposal to expand the use of the proportional amortization method to more types of income tax credit structures so long as certain conditions are met. This will help align the accounting for more types of arrangements. Comments are due by October 6, 2022.
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