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!

April saw limited activity from standard setters. The FASB made appointments to committees, including the Investor Advisory Committee and the Small Business Advisory Committee. Additionally, the Emerging Issues Task Force (EITF) welcomed new members. The FASB’s Private Company Council (PCC) discussed potential research areas, such as debt modifications and lease accounting simplifications. GASB planned to review a draft of the final post-implementation review report for Statements No. 67 and No. 68 on May 6. Overall, April was marked by committee appointments and preliminary discussions on accounting topics.

March brought significant updates to the accounting world. The FASB issued ASU 2024-01 and ASU 2024-02, Jackson M. Day was appointed FASB’s Technical Director, the 2024 ACFE Report to the Nations was released and the SEC adopted a rule for climate-related disclosures. Read more in our March 2024 newsletter.

February 2024 was a quiet month, with no new standards but insightful meetings. The FASB delved into hedge accounting improvements on February 7, addressing feedback on proposed amendments. Discussions included identifying risk components in cash flow hedges and hedging variable risk components. On February 28, the FASB discussed profit interest awards and began redeliberation on the Purchased Financial Assets Project. The GASB remained relatively inactive, with upcoming discussions in March. The AICPA’s PEEC focused on various hot topics, aiming for convergence with the IESBA.