September 2025 Newsletter
September 30, 2025
For the first time in a long while, the FASB has no exposure drafts open for comment, though one is expected soon, along with seven new ASUs before year-end—two already issued update software guidance (ASU 2025-06) and refine derivatives scope (ASU 2025-07). GASB advanced key projects in September, including revenue and expense recognition methods, subsequent events nearing completion, and clearer definitions of infrastructure assets. The ASB reviewed feedback on attestation and confirmation exposure drafts, while PEEC issued a tax services exposure draft (comments due December 15, 2025) and new guidance on simultaneous employment effective September 2026. Meanwhile, the 2025 Compliance Supplement is still pending, with auditors instructed not to issue reports until final, and NASBA and the AICPA are seeking comments by December 16, 2025, on proposed CPE rule changes.

For the first time in a LONG time, there are no exposure drafts currently open for comment from the FASB! However, an exposure draft is expected in the very near future! We are also expecting SEVEN new ASUs before the end of the year! The FASB already issued ASU 2025-06, updating the software guidance and modernizing it for current practice, as well as ASU 2025-07, which modifies the scope of the derivatives guidance, reducing the number of derivatives when applied this month. 2025 is looking to make its mark on financial reporting!

GASB had a packed September, moving major projects closer to the finish line. Regarding revenue and expense recognition, the Board agreed that governments can measure progress using inputs, outputs, time, or other reasonable methods, provided that these methods are consistent and remeasured each period. The subsequent events project is nearly wrapped, with scope, disclosures, and transition settled, and a pre-ballot draft on the way. The Board also fine-tuned its definition of infrastructure assets, clarifying how buildings and networks should be treated. Plenty of progress this month as these standards head toward final stages!

The ARSC did not meet this month, but is scheduled to meet at the end of October. The ASB did meet in September and discussed both their attestation and confirmation exposure drafts. Both meetings were focused on feedback received from various comment letters. Stay tuned to see if final versions are released later this year!

PEEC was very busy this September! On September 15, PEEC issued an exposure draft proposing revisions to the “Tax Services” interpretation (ET §1.295.160). The proposal, which aligns more closely with international ethics standards, addresses independence concerns when members provide tax advisory or planning services to attest clients. Rather than adopting the “more likely than not” threshold included in the June 2024 draft, PEEC is now proposing a principles-based approach. The comment period on the exposure draft is open through December 15, 2025. Additionally, on September 16, PEEC released new guidance on simultaneous employment, introducing a revised definition of “simultaneously employed or associated” (ET §0.400.49) and a new interpretation, “Simultaneously Employed or Associated With an Attest Client” (ET §1.275.005). The guidance prohibits covered members from any simultaneous employment or association with an attest client and prevents partners or professional employees from holding key positions at an attest client, subject to limited exceptions. The new guidance, which updates standards first issued more than 20 years ago, reflects modern work practices and will take effect on September 15, 2026.

We are still anxiously waiting for the issuance of the 2025 Compliance Supplement. The draft remains available from the AICPA’s GAQC. However, the AICPA has indicated that auditors should NOT issue any reports until a final supplement is issued.

NASBA and the AICPA issued proposed changes to the CPE rules. Comments are requested by December 16, 2025.

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.