August 2023 witnessed significant developments in accounting standards. The FASB released ASU 2023-04, addressing specific SEC sections within ASC 405, Liabilities, in response to SEC Staff Accounting Bulletin 121. Additionally, the FASB issued ASU 2023-05, focusing on Business Combinations – Joint Venture Formations, to enhance financial reporting practices for joint ventures. The 2023 Investor Outreach Report highlighted FASB’s engagement efforts with investors, showcasing proactive interactions and the expansion of the FASB Investor Advisory Committee. Furthermore, the FAF announced appointments and reappointments to the Private Company Council, while the FASAB sought feedback on proposals to enhance note disclosures in financial statements, aiming to improve clarity and consistency.

July 2023 saw notable developments in organizational activities. GASB issued Implementation Guide No. 2023-01, providing clarity on various topics like Short-Term Leases. AICPA & CIMA leaders expressed support for global sustainability standards, emphasizing climate-related risks. FAF released its 2022 Annual Report, highlighting milestones and standards. FAF also called for nominations to join FASAC, the advisory body to FASB. Meanwhile, FASB discussed comment letters and redeliberated on the proposed ASU for Segment Reporting, signaling potential updates in the future.

In June 2023, standard setters were active with exposure drafts and approvals. FASB proposed an ASU to enhance accounting for purchased financial assets, addressing stakeholder feedback from ASU 2016-13 (CECL). AICPA’s PEEC released an exposure draft on defining public interest entities, aligning with IESBA. GASB approved a new Implementation Guide, covering topics like Short-Term Leases and Accounting Changes. Feedback deadlines for FASB and AICPA drafts are in August and September, respectively.

In May 2023, significant developments emerged from standard setters. FASB issued an exposure draft aiming to standardize accounting for profits interests, inviting comments until July 10. They also addressed disclosure improvements aligning with the SEC’s simplification efforts. GASB added a major project on infrastructure assets to its technical agenda, evaluating recognition, measurement, and disclosure practices. AICPA released its fourth version of plans to enhance the accounting professional pipeline, emphasizing collaboration among stakeholders. NASBA extended the CPA exam eligibility window to 30 months based on score release date, accommodating feedback from over 850 comment letters.

In April 2023, standard setters maintained a slower pace to accommodate firms wrapping up busy seasons. FASB held productive meetings, redeliberating joint venture formations and software cost disclosures, directing staff to draft updates. They also discussed agenda prioritization, adding a project on induced conversion guidance to the EITF agenda. GASB discussed the classification of nonfinancial assets, tentatively deciding on criteria for assets held for sale and factors for evaluating probable sales. AICPA’s Auditing Standards Board did not convene or issue drafts but scheduled a meeting for May 16-18.