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In March 2023, the FASB issued an exposure draft on cryptocurrency, and issued ASU 2023-01 on leases under common control arrangements an ASU 2023-02 on accounting for investments in tax credit structures using the proportional amortization method. AICPA released SAS No. 149 for audits of group financial statements. GASB didn’t issue new standards but accepted comments on proposed implementation guidance for GASB 96.

In February 2023, the FASB affirmed changes to lease accounting for related parties and plans to issue the new ASU by the end of March. GASB issued an exposure draft on subscription-based IT arrangements. AICPA’s SAS 149 on group audits is imminent, targeting an effective date after December 15, 2026. Concerns arose over proposed legislation in Minnesota to lower CPA licensure credit hour requirements.

In January 2023, FASB issued ASU 2022-06, extending temporary relief for reference rate reform. Opportunities arose for CPAs to engage in standard setting, with PCC and FASB seeking nominations for new members. Access to the Codification will soon be free for more users, aiding smaller organizations. GASB held meetings but issued no new standards. AICPA finalized blueprints for CPA exam changes. ARSC and ASB meetings focused on decision trees, strategic planning, quality management, and group audits.

While we haven’t quite made it to the end of 2022, there has been very little standard setting activity at this point. FASB issued ASU 2022-05, Transition for Sold Contracts to address transition issued related to changes to long-duration insurance guidance (original ASU 2018-12). We do expect that reference rate reform effective date changes will come out before the end of the year and we know that the proposed changes to the leases standard won’t be finalized until late Q1 2023. GASB and AICPA have not issued any proposed or final standards to date. We’ll continue to monitor changes from standard setters and will let you know in January if anything new should issue that you need to read about. But until then, enjoy a light year of standard setting and an early holiday present from the AICPA, GASB, and FASB!

The FASB closed November with a BIG proposal related to private companies and leases. They are proposing changes to related party guidance for related parties under common control. This is a much-awaited proposal and we encourage you to provide feedback to the FASB about this very important topic. Otherwise, November was a slow month for standard setting. No final standards were issued by any standard setter. The GASB did put out a new exposure draft, Implementation Guidance Update—2023, which provides new questions and answers in a variety of financial reporting topics. FASB also proposed a new chapter for FASB Concepts Statement No. 8, Conceptual Framework for Financial Reporting. The AICPA also put out for proposal Peer Review Standards Update No. 1, Omnibus Enhancements and Technical Corrections. We are still waiting for the issuance of a reference rate reform effective date change. We’ll continue to monitor and keep you informed.

We are still amazed at how quickly 2022 has just flown by! FASB has issued 3 exposure drafts this month including:Proposed Statement of Financial Accounting Concepts No. 8—Conceptual Framework for Financial Reporting—Chapter 2: The Reporting EntityProposed ASU...