Jun 12, 2025 | Accounting
The FASB staff just released an Educational Paper on Retainage under Topic 606—clarifying how to present and disclose retainage in construction contracts. While it reinforces existing GAAP and offers optional disclosures to improve clarity, it also highlights a bigger issue: even when disclosures are technically “there”, users can still struggle to connect the dots. This is a great reminder that financial reporting isn’t just about compliance, it’s about communication.
Jun 5, 2025 | Accounting
The Financial Accounting Foundation (FAF) and the Private Company Council (PCC) have released their 2024 annual reports, highlighting key accomplishments, stakeholder engagement, and strategic priorities. The FAF report covers activities of the FASB and GASB, including new standards, outreach efforts, and financial statements. The PCC report features 2024 highlights, strategic updates, and a message from the Chair.
May 30, 2025 | Newsletter
In May, the FASB issued two new Accounting Standards Updates (ASUs). ASU 2025-03 introduces a principles-based approach for determining the accounting acquirer in variable interest entity acquisitions, while ASU 2025-04 clarifies the treatment of share-based consideration payable to a customer. Comment periods for proposals on intangibles and debt exchanges closed this month, and the agenda consultation input period wraps up in June. CECL relief, already approved, is still expected later in Q2. Looking ahead, four final ASUs and an exposure draft are anticipated in Q4. Meanwhile, the GASB remained relatively quiet but held a collaborative session with the AICPA’s State and Local Government Expert Panel, addressing implementation challenges, federal funding, and public sector workforce concerns. PEEC met twice to discuss topics such as SSAE engagements, alternative practice structures, digital assets, and international convergence efforts with the IESBA. Lastly, the ASB met in Minneapolis, where Sarah Lord passed the torch to Catherie “Halie” Creps as ASB Chair. The board voted to expose the fraud proposal and made progress on sustainability updates to the attestation standards, with a fraud exposure draft expected this summer.
Apr 30, 2025 | Newsletter
On April 1, the FASB issued a Staff Educational Paper clarifying how to apply revenue recognition guidance to construction contracts with retainage provisions, leading the PCC to remove a related project from its agenda. The FASB finalized guidance on derivatives and is meeting again to discuss CECL, Purchased Financial Assets, and Paid-in-Kind Dividends on Preferred Stock, with two final ASUs and a proposal on debt exchanges expected this quarter. The GASB had a quieter April but held meetings this week to discuss the 2025 Implementation Guidance Update, Infrastructure Assets feedback, revenue and expense recognition, and a technical plan for the remainder of 2025. GASB’s meetings will conclude on May 1 with a joint session with the AICPA’s State and Local Government Expert Panel. The ASB did not meet in April but has a three-day meeting planned for May to address its fraud proposal and a significant SSAE update, with FinREC also meeting in New York next month. The PEEC did not meet in April but has two upcoming meetings in May, so additional updates are expected soon.
Apr 17, 2025 | Accounting
The FASB is asking a big question: Should we rethink how we recognize intangibles on the balance sheet? In its newly released Invitation to Comment: Recognition of Intangibles, the Board explores whether current GAAP adequately reflects today’s innovation-driven business models—especially when it comes to internally developed assets like R&D, software, and brand value.
