September was a busy month for the standard setters. The FASB issued two proposed Accounting Standards Updates (ASUs), one on September 25 aimed at clarifying hedge accounting guidance, particularly addressing global reference rate reform, with feedback due by November 25. On September 30, they proposed another ASU to improve guidance on share-based consideration payable to customers, impacting revenue recognition, with feedback due by November 14. Meanwhile, the AICPA and NASBA sought input on proposed changes to the Uniform Accountancy Act (UAA) to create a new CPA licensure pathway, with feedback open until December. The AICPA’s ARSC also released an exposure draft on amending AR-C section 70 for consulting services engagements. Lastly, the GASB held two meetings, approving GASB 104 on the disclosure of certain capital assets and discussing infrastructure assets and subsequent events.

In August, the FASB released its 2024 Investor Outreach Report, seeking input on top investor priorities, including financial reporting disaggregation, ESG-related transactions, digital assets, and financial KPIs. On August 16, the FASB and the Accounting Standards Board of Japan held their 34th meeting in Norwalk, CT, continuing their efforts to develop global accounting standards. From August 20-22, the GASB met to discuss topics like infrastructure assets, revenue recognition, and its technical plan, with another meeting scheduled for September 9 to discuss nonfinancial assets. On August 13, an AICPA-supported letter urged the Department of Homeland Security to include accounting in the STEM Designated Degree Program List, potentially attracting global talent to U.S. accounting programs.

July was a significant month for standard setters, with key developments at the FASB, GASB, and AICPA. The FASB completed its Conceptual Framework with the release of Chapter 6, providing guidance on measurement systems for financial statements, and proposed an ASU to simplify financial reporting for derivatives. The AICPA’s Professional Ethics Executive Committee (PPEC) is scheduled to discuss various ethical issues in August, including AI and digital assets. Meanwhile, the GASB engaged in discussions on revenue and expense recognition, infrastructure assets, and other critical issues, with a review of a draft Statement on capital assets set for July 31.

In June, standard setters have been very active. The AICPA released an updated practice aid on digital assets, with significant updates to Chapters 5 and 6, and new Q&A items in Appendix B. The AICPA’s PEEC issued exposure drafts on ethics for recruiting and tax services. Additionally, a new AICPA Technical Question and Answer (TQA) addresses related-party disclosure requirements for higher education institutions. The GASB discussed disclosure requirements for liens and liabilities on capital assets held for sale. The FASB held meetings on various topics, including income statement expense disaggregation, software cost accounting, share-based consideration, environmental credits, government grants, and hedge accounting improvements, with updates expected next month. The Private Company Council (PCC) added four new projects: simplified CECL, debt modifications, conditional repayments and overbillings, and lease accounting simplifications. They are seeking feedback from private entities. So far in 2024, there have been two Accounting Standards Updates (ASUs), with more expected by year-end.

May was a busy month for standard setters. The GASB celebrated its 40th anniversary and issued GASB 103, providing key improvements in financial reporting, effective June 2025. The OMB released the 2024 Compliance Supplement, offering guidance on audits and increasing the audit threshold to $1,000,000 for fiscal years beginning after October 2024. The ASB approved SSAE 23, revising practitioner definitions and setting a December 2025 deadline for new Quality Management systems. Stay tuned for more updates!