Early in the month, the FASB introduced ASU 2023-04. This update focuses on specific SEC sections within ASC 405, Liabilities, prompted by the issuance of SEC Staff Accounting Bulletin 121.
Two weeks later, the FASB presented the 2023 Investor Outreach Report. This report highlighted the growth of the FASB Investor Advisory Committee, the only advisory group solely composed of a single stakeholder category. The committee expanded with three new members. The report showcased FASB’s proactive efforts, including over 435 instances of interactions with investors in the year leading up to June 30, 2023.
Furthermore, on August 23, the FASB issued ASU 2023-05, focusing on Business Combinations – Joint Venture Formations (Subtopic 805-60): Recognition and Initial Measurement. This update aims to provide better insights to investors and allocators of capital in a joint venture’s financial statements, while also reducing variations in financial reporting practices. Under ASU 2023-05, newly formed joint ventures will initially value their assets and liabilities at fair value, with exceptions aligned to business combinations guidelines. This change becomes effective for all joint ventures formed on or after January 1, 2025, with early adoption allowed.
Other notable activities in August include the FAF announcing appointments and reappointments to the Private Company Council. Brad Hendricks was nominated for a three-year term, while Robert Messer and Doug Uhl were reappointed for three-year terms starting January 1, 2024.
Finally, on August 25, the Federal Accounting Standards Advisory Board (FASAB) began seeking feedback on a proposal to enhance note disclosures in financial statements. This proposal aims to reduce repetition, improve clarity, and ensure consistency in note disclosures. It also includes consolidating guidance for management’s discussion and analysis (MD&A) standards. Stakeholders are encouraged to provide feedback until November 27.
Stay tuned for more updates in the upcoming month!