On March 15, the FASB released proposed ASU Income Taxes (Topic 740) – Improvements to Income Tax Disclosures. The proposed enhancements primarily related to the rate reconciliation and income taxes paid information. It is intended to help investors better assess how an entity’s worldwide operations are related to tax planning. The FASB will be accepting comments through May 30.
Then on March 23, the FASB issued an exposure draft on cryptocurrency to address feedback from stakeholders. The proposal would require entities to measure crypto assets at fair value, and would add disclosures around significant holdings, restrictions, and changes in those holdings. Comments are due by June 6.
On March 27, the FASB officially issued ASU 2023-01 – Leases (Topic 842): Common Control Arrangements. This ASU contains a practical expedient for private & nonprofits without conduit debt under common control arrangements to allow these entities to use the written terms and conditions of their leases to apply Topic 842. The ASU also contains a change to the amortization of leasehold improvements for all common control entities, including public entities. ASU 2023-01 is effective for fiscal years beginning after December 15, 2023 but early adoption is permitted.
Two days later, the FASB issued ASU 2023-02 – Investments – Equity Method and Joint Ventures (Topic 323): Accounting for Investments in Tax Credit Structures Using the Proportional Amortization Method. This ASU improves the accounting and disclosures for investments in tax credit structures by expanding the allowability of the proportional amortization method. ASU 2023-02 is effective for public business entities for fiscal years beginning after December 15, 2023. For all other entities, the amendments are effective for fiscal years beginning after December 15, 2024.
On March 7, the AICPA Auditing Standards Board issued SAS No. 149, Special Considerations – Audits of Group Financial Statements (Including the Work of Component Auditors and Audits of Referred-to Auditors). SAS 149 introduces the term “referred-to auditor” and revises the definition of a component auditor. It also provides a risk-based approach to planning and performing a group audit, and is effective for audits of group financial statements for periods ending on or after December 15, 2026. SQMS No. 3. was also issued by the AICPA that day and updates QM for changes in group audits.
The deadline for submitting comments on GASB’s exposure draft on proposed implementation guidance on GASB 96 was March 10, 2023. This month, the GASB did not issue any new standards or exposure drafts.
