Stay Informed, Stay Inspired

September was a busy month for the standard setters. The FASB issued two proposed Accounting Standards Updates (ASUs), one on September 25 aimed at clarifying hedge accounting guidance, particularly addressing global reference rate reform, with feedback due by November 25. On September 30, they proposed another ASU to improve guidance on share-based consideration payable to customers, impacting revenue recognition, with feedback due by November 14. Meanwhile, the AICPA and NASBA sought input on proposed changes to the Uniform Accountancy Act (UAA) to create a new CPA licensure pathway, with feedback open until December. The AICPA’s ARSC also released an exposure draft on amending AR-C section 70 for consulting services engagements. Lastly, the GASB held two meetings, approving GASB 104 on the disclosure of certain capital assets and discussing infrastructure assets and subsequent events.

In August, the FASB released its 2024 Investor Outreach Report, seeking input on top investor priorities, including financial reporting disaggregation, ESG-related transactions, digital assets, and financial KPIs. On August 16, the FASB and the Accounting Standards Board of Japan held their 34th meeting in Norwalk, CT, continuing their efforts to develop global accounting standards. From August 20-22, the GASB met to discuss topics like infrastructure assets, revenue recognition, and its technical plan, with another meeting scheduled for September 9 to discuss nonfinancial assets. On August 13, an AICPA-supported letter urged the Department of Homeland Security to include accounting in the STEM Designated Degree Program List, potentially attracting global talent to U.S. accounting programs.

July was a significant month for standard setters, with key developments at the FASB, GASB, and AICPA. The FASB completed its Conceptual Framework with the release of Chapter 6, providing guidance on measurement systems for financial statements, and proposed an ASU to simplify financial reporting for derivatives. The AICPA’s Professional Ethics Executive Committee (PPEC) is scheduled to discuss various ethical issues in August, including AI and digital assets. Meanwhile, the GASB engaged in discussions on revenue and expense recognition, infrastructure assets, and other critical issues, with a review of a draft Statement on capital assets set for July 31.