December 1, 2023
Newsletter December 2023
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.

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December was a busy month for the FASB so far and we still have 10 days left! As GLS is closed for the remainder of this year, we’ll provide the updates so far and then any items issued in the next 10 days will be included in our January newsletter. December already included the issuance of two new ASUs and a proposed ASU relating to convertible debt instruments. But first, on December 12, the FAF Board of Trustees appointed 11 new members to the Financial Accounting Standards Advisory Council (FASAC). The FASAC advises the FASB on strategic and technical issues, project priorities, and other matters that affect standard setting.

On December 13, the FASB issued ASU 2023-08 to improve the accounting for and disclosure of certain crypto assets. This ASU has been greatly anticipated, and it responds to feedback from stakeholders who indicated that improving the accounting for and disclosure of crypto assets should be a top priority of the Board in the 2021 Agenda Consultation Report. The amendments in ASU 2023-08 require an entity to measure crypto assets within scope at fair value each reporting period, with changes in fair value recognized in net income. The amendments also improve the information provided to investors about an entity’s crypto asset holdings by requiring disclosure about significant holdings, contractual sales restrictions, and changes during the reporting period. ASU 2023-08 is effective for all entities for fiscal years beginning after December 15, 2024, including interim periods within those fiscal years. Early adoption is permitted.

On December 14, the FASB issued ASU 2023-09 which addresses requests for improved income tax disclosures from investors who use financial statements to make capital allocation decisions. The ASU improves the transparency of income tax disclosures by requiring greater disaggregation of information in the rate reconciliation and income taxes paid disaggregated by jurisdiction. It also includes additional income tax disclosures requested by users. For public business entities, the standard is effective for annual periods beginning after December 15, 2024. For other entities, the amendments are effective for annual periods beginning after December 15, 2025. Early adoption is permitted for annual financial statements that have not yet been issued or made available for issuance.

On December 19, the FASB issued a proposed ASU intended to improve the application and relevance of accounting guidance related to induced conversions of convertible debt instruments. The proposed ASU is based on a consensus of the FASB’s Emerging Issues Task Force (EITF). The proposed ASU would address this feedback by clarifying the requirements for determining whether certain settlements of convertible debt instruments, including convertible debt instruments with cash conversion features, should be accounted for as induced conversions. Comments are due by March 18, 2024.

In other news, on December 13, the AICPA commented on the proposed standard for sustainability assurance. The AICPA recently submitted a comment letter in response to the exposure draft of International Standard on Sustainability Assurance (ISSA) 5000, General Requirements for Sustainability Assurance Engagements. The AICPA is working to provide feedback to ensure the final standard works for CPAs in the United States.

Finally, the AICPA’s Professional Ethics Executive Committee (PEEC) released a new interpretation related to public interest entities. The new definition of publicly traded entity and the revised definition of public interest entity are part of the convergence requirements with International Federation of Accountants (IFAC).

Stay tuned for more updates in the New Year! We hope everyone has a wonderful holiday season.

December 2023


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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.