On February 19, PEEC revised its authoritative guidance on Executive or Employee Recruiting (ET §1.295.135). The guidance will be effective January 1, 2026, and early implementation is allowed. Then on February 26th PEEC approved revisions to the “Section 529 Plans” interpretation (ET §1.240.070). In 529 plans, PEEC determined that the account owner’s interest in the savings plan’s underlying investments constitutes an indirect financial interest, rather than a direct one. This interpretation will be effective May 31, 2025.
The GASB had quite a bit going on this month. At the GASB’s February 4-5 meetings, the Board approved a ballot draft of the Preliminary Views document on Going Concern and Severe Financial Stress to be reviewed at the March 2025 meeting, refined Revenue and Expense Recognition rules, and advanced the Electronic Financial Reporting (EFR) Taxonomy Project. The GASB also released the Post-Implementation Review (PIR) of Statement 72 (Fair Value). The GASB also held public hearings on February 12, 18, and 26 focused on Infrastructure Assets. The Board will now revise its proposals before issuing an Exposure Draft, with additional public engagement opportunities expected in the coming months.
The PCAOB has withdrawn its request for SEC approval of rules that would have required registered firms to report a new set of firm and engagement metrics. The Auditing Standards Board (ASB) has approved two exposure drafts for public comment, expected to be issued by early March 2025, regarding attestation standards and external confirmations. Following recent state-level changes in Ohio and Virginia, the AICPA and NASBA are proposing amendments to the Uniform Accountancy Act (UAA) to introduce a third pathway for CPA licensure. This new option would allow candidates to qualify with a bachelor’s degree, two years of professional experience, and passage of the CPA Exam, in addition to the current pathways. The proposal also includes practice mobility adjustments, aiming to address the CPA talent shortage while preserving licensure integrity and public trust.
Finally, the FASB had a slower month with only one meeting on share-based consideration payable to a customer. The FAF also reappointed two members to the Private Company Council to another term. So, while we haven’t seen much standard setting this month, there has been quite a bit of activity that will lead to more standards in the near future!
