In January, the FASB appointed new members to its Not-for-Profit Advisory Committee (NAC) and the GASB issued Statement 102, Certain Risk Disclosures. The NAC welcomed six new members for a four-year term. GASB’s Statement 102 aims to enhance risk disclosure in government financial statements, effective for fiscal years starting after June 15, 2024. Additionally, anticipation builds for the release of the new Yellow Book and the 2024 Compliance Supplement in the coming months.

December 2023 saw significant activity from the FASB, including the issuance of two new ASUs and a proposed ASU on convertible debt instruments. ASU 2023-08 addresses crypto asset accounting and disclosure, effective for fiscal years starting after December 15, 2024. ASU 2023-09 enhances income tax disclosures, with effective dates varying by entity type. The FASB also proposed an ASU to clarify convertible debt instrument settlements. Additionally, the AICPA commented on sustainability assurance standards, and PEEC released a new interpretation on public interest entities, aligning with IFAC requirements.

In November 2023, the FASB issued ASU 2023-07, enhancing segment reporting disclosures to include significant expenses regularly provided to decision-makers. Public entities must report this information for annual periods starting after December 15, 2023. The FASB also appointed Hillary H. Salo as a new board member and reappointed Susan M. Cosper. Additionally, the AICPA adopted revised Statements on Standards for Tax Services, effective January 1, 2024, introducing a new organizational structure and three new standards focusing on data protection, tool reliance, and client representation before tax authorities.

In October 2023, the FASB issued ASU 2023-06, incorporating SEC disclosure requirements into the Accounting Standards Codification to enhance clarity and comparability. Additionally, FASB representatives met with the ASBJ in Tokyo to collaborate on global accounting standards, discussing topics such as cryptocurrency accounting and income statement expense disaggregation. Furthermore, the AICPA expressed support for legislation introducing accounting into STEM education from kindergarten to 12th grade, aiming to foster interest in the field among students.

September 2023 brought significant developments in standard setting. The ASB proposed changes to align quality management standards with audit standards, seeking comments until December 1. PEEC approved revisions to the Code of Professional Conduct, ensuring alignment with international standards. GASB issued an exposure draft on capital asset disclosure and classification, open for comments until January 5, 2024. OMB released a preliminary draft of proposed changes to the Uniform Guidance, including an increase in the Single Audit threshold to $1 million. Lastly, the FASB voted to issue a standard on crypto assets, effective for fiscal years starting after December 15, 2024.

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.