On June 27, the FASB issued an exposure draft proposing a new ASU intended to improve the accounting for purchased financial assets. This ASU was inspired by stakeholder feedback from the post-implementation review process of ASU 2016-13 (CECL). The FASB heard feedback, particularly from investors, regarding the accounting for financial assets acquired in a business combination or asset acquisition; namely that the FASB should reconsider the accounting for purchased financial assets. The proposed ASU would address concerns by requiring that all acquired financial assets, with certain limited exceptions, would follow the existing gross-up approach. Comments are due by August 28, 2023.
On June 15, the AICPA’s Professional Ethics Executive Committee (PEEC) released for public comment an exposure draft related to public interest entities (PIEs). In this exposure draft, PPEC proposed a new definition of publicly traded company and a revision to the definition of public interest entity as part of their IESBA convergence. The definition explains when AICPA independence standards would apply and when related ethics standards like PCAOB and NAIC standards would apply. Comments are due September 15, 2023.
This month, GASB approved the issuance of a new Implementation Guide to be issued soon. This Implementation Guide was initially exposed for comment back on October 31, 2022. The Implementation Guide featured Q&A sections on various topics, including Short-Term Leases, SBITAs, and Accounting Changes and Error Corrections.
Stay tuned for next month’s updates!
