On February 15, 2023, FASB met and affirmed the proposed changes to Topic 842, Leases for related parties under common control. The FASB indicated that the new ASU should be issued by the end of March. We also expect an exposure draft around cryptocurrency before the end of Q1.
GASB conducted a 3-day meeting in Norwalk, CT. In February, they also issued an exposure draft on a single question for the proposed implementation guidance on subscription-based information technology arrangements (SBITAs). The question provides guidance on evaluating cloud computing arrangements in the context of a SBITA. Comments are due March 10, 2023.
The AICPA voted on SAS 149, Group Audits. SAS 149 will provide a risk-based approach to planning and performing a group audit. It is expected to be issued very soon and will be effective for audits of group financial statements for periods ending on or after December 15, 2026.
Finally, the profession is beginning to take sides on issues related to the pipeline. The 150 credit hour rule required for CPA licensure is starting to be challenged by states, and NASBA and the AICPA are responding. In particular, Minnesota proposed legislation that would allow CPA candidates with only 120 credit hours to be qualified for licensure in the state of Minnesota, provided that they have two years of experience. The AICPA has responded and expressed concerns over the implications and real-world impact of not adhering to the 150 credit hour requirement. We will continue to follow the developments and keep you posted!