Jul 17, 2025 | Accounting, Government
In this week’s blog, we explore the newly released GAAP Utilization Report from the GASB. State and local governments often have flexibility in choosing a financial reporting framework, but what drives that decision? This report offers valuable insights into the factors that influence whether governments adopt GAAP or rely on alternative frameworks. The research highlights key trends across states, counties, municipalities, and special districts, including which states require GAAP and what conditions increase the likelihood of GAAP adoption.
Jul 10, 2025 | Accounting, Auditing, Ethics, Government
This week’s blog covers the activity of the major standard setters in the second quarter of 2025. We will review the issued standards of the AICPA, FASB, and GASB with an update on what to expect next quarter.
Jun 27, 2025 | Newsletter
June 2025 brought fewer standard-setting developments than expected. The long-awaited 2025 Compliance Supplement remains unreleased, and no ASUs were issued by the FASB, despite earlier expectations—now delayed to Q3. FASB did hold meetings on government grants and interim reporting. GASB released Implementation Guide No. 2025-1, addressing key topics like leases, compensated absences, and financial reporting improvements, while also advancing projects on revenue recognition, subsequent events, and digital taxonomy. PEEC issued an exposure draft clarifying independence requirements for SSAE engagements, with comments due by September 5. Although the Auditing Standards Board approved a draft on fraud considerations, it has yet to be published. All signs point to a packed Q3—stay tuned!
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.
