February 2024 Newsletter
February 28, 2024
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.
February 2024 Genuine Learning Newsletter

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February was a quiet month for the standard setters! While no new standards were issued, several meetings were held, and exciting topics were discussed.

On February 7, the FASB met to discuss improving hedge accounting. The Board discussed comment letter feedback on proposed amendments related to contractually specified components in cash flow hedges of nonfinancial forecasted transactions. The Board decided to amend the guidance used to identify risk components eligible to be designated as the hedged risk in a cash flow hedge of a forecasted nonfinancial transaction. The Board decided that the determination of whether a component is eligible to be designated as the hedged risk should be based on an evaluation of whether the component satisfies the clearly-and-closely-related criteria within the normal purchase and normal sale scope exception. The Board decided not to affirm the proposed addition of paragraph 815-20-25-15B  and instead decided to indicate that entities are not precluded from hedging a variable risk component in a forward contract accounted for as a derivative if the associated forecasted transaction is probable of occurring.

Additionally, the FASB met on February 28 to discuss the profits interest awards project. The Board discussed a sweep issue related to the issuance of a final update. The Board also began its redeliberation on the Purchased Financial Assets Project, discussed comment letter feedback, and provided the staff with direction on potential paths forward.

Although there wasn’t too much activity at the GASB this month, the Board will meet March 5-7 in Norwalk to discuss a variety of topics. Some items on their agenda include revenue and expense recognition and infrastructure assets.

In other news, the AICPA’s Professional Ethics Executive Committee (PEEC) held meetings on February 20 & 21. Their agenda was packed with a variety of hot topics, such as 529 plans, private equity investment in firms, digital assets and AI, simultaneous employment or association with an attest client, and SSAE engagements. PEEC also has the goal of convergence with the International Ethics Standards Board for Accountants (IESBA). At PEEC’s meeting, a variety of IESBA convergence topics were discussed, such as fees, public interest entities, tax services, and engagement team/group audits using the work of an external expert.

Stay tuned for more updates next month!

Jaclyn Veno CPA | Auditing Level Training | CPE

Melisa Galasso, CPA, CSP, CPTD

Melisa F. Galasso is the founder and CEO of Galasso Learning Solutions LLC. A CPA with nearly 20 years of experience in the accounting profession, Melisa designs and facilitates courses in advanced technical accounting and auditing topics, including not-for-profit and governmental accounting.

Her passion is providing high-quality CPE that is meaningful, creates efficiencies and improves quality, and positively impacts ROI. She also supports essential professional development, audit level training, and train the trainer efforts.

Melisa is a Certified Speaking Professional, a Certified Professional in Talent Development (CPTD), and has earned the Association for Talent Development Master Trainer™ designation. Her passion for instructional design and adult learning techniques is one of the differentiators that set her apart from other CPE providers.

She also serves on the FASB’s Not-for-Profit Advisory Committee (NAC), AICPA Council, and the AICPA’s Women’s Initiative Executive Committee (WIEC). She also serves as a Subject Matter Expert for the Center for Plain English Accounting. She previously served on the AICPA’s Technical Issues Committee (TIC), the VSCPA’s Board of Directors, and is a past Chair of the NCACPA’s A&A committee. In addition, Melisa is the author of Money Matters for Nonprofits: How Board Members Can Harness the Power of Financial Statements by Understanding Basic Accounting which is available on Amazon or anywhere you purchase books online.

Melisa received a Top 50 Women in Accounting Award in 2021 by Ignition, is a 2020 Enterprising Women of the Year Award recipient, and was honored as a “40 under 40” by CPA Practice Advisor in 2017, 2018, and 2019. She was also named the 2019 Rising Star by her regional NAWBO chapter, received the Don Farmer award for achievement in technical content instruction, and earned several other awards for public speaking and technical training.