Software Accounting - In October, 2024, FASB proposed an update to the existing internal-use software guidance that aims to modernize the accounting standards to (1) better reflect current software development practices, such as the shift from sequential to incremental and iterative methods, and (2) enhance the transparency of cash flows related to internal-use software costs. Feedback on the proposal is due by January 27, 2025.

Climate Change - In August 2024, a group of state treasurers and auditors has sent a preemptive letter to FASB, urging it to reject any potential proposals to include climate-related reporting standards in U.S. GAAP. In the letter, more than two dozen state treasurers and auditors expressed strong concerns about the potential inclusion of sustainability or greenhouse gas (GHG) emissions reporting standards in GAAP. They argue that such rules would be inconsistent with core GAAP principles, such as materiality, sincerity, and prudence. O

Software Accounting - In June 2024, FASB announced that it will discuss results of staff research on targeted improvements to Subtopic 350-40, Intangibles—Goodwill and Other—Internal-Use Software, and software cost disclosures, as well as consequential amendments, transition, benefits and costs, and whether to proceed to drafting a proposed Accounting Standards Update for vote by written ballot.

Climate Rules - In March 2024, the SEC issued a final rule that requires registrants to provide comprehensive climate risk disclosures in their annual reports and registration statements, including the disclosure of climate-related financial metrics, as well as their impacts on financial estimates and assumptions.

Crypto Assets - In December 2023, FASB issued ASU 2023-08 Intangibles—Goodwill and Other—Crypto Assets (Subtopic 350-60). The final guidance requires all entities to measure certain crypto assets they hold at fair value and reflect the changes in fair value in net income each reporting period. Entities should present crypto assets at fair value separately from other intangible assets on their balance sheets and present changes in the fair value of crypto assets apart from changes in the carrying amounts of other intangible assets in their income statements.

Cybersecurity - In July 2023, SEC issued its final rule to increase registrants’ cybersecurity disclosure requirements. SEC Release No. 33-11216, Cybersecurity Risk Management, Strategy, Governance, and Incident Disclosure (rule or promulgation) applies to all public business entities subject to the Securities Exchange Act of 1934, including foreign filers (except Canadian foreign private issuers that file Form 30-F and asset-backed securities issuers).

Share Repurchase Programs - In November 2023, SEC issued an order postponing the effective date of the Share Repurchase Disclosure Modernization rule (the “Repurchase Rule”), which became effective on July 31, 2023. As a result, the Repurchase Rule is stayed pending further SEC action, and issuers will not need to comply with the Repurchase Rule until the SEC takes further action with respect to the rule.

Joint Ventures - In August 2023, FASB issued ASU 2023-05 that provides guidance on how a joint venture initially recognizes and measures contributions received at its formation date. The ASU requires a joint venture to apply a new basis of accounting at its formation date by valuing the net assets contributed at fair value for both business and asset transactions. The value of the net assets in total is then allocated to individual assets and liabilities by applying Topic 805 with certain exceptions.

Incentive Compensation - In October 2022, SEC promulgated the final clawback rule (Rule or the Rule) that Section 954 of Dodd-Frank Act mandated. The Rule added Section 10D to the Securities Exchange Act of 1934. The final rule directs U.S. stock exchanges and securities associations to adopt listing standards requiring all listed companies, including foreign private issuers, emerging growth companies and smaller reporting companies, to adopt and comply with a written clawback policy.

Joint Ventures - In April 2023, FASB authorized its staff to draft a final ASU that will establish a new basis of accounting for most entities that meet the definition in ASC 323 of a joint venture. The new guidance will (1) require a joint venture to initially measure its assets and liabilities at fair value upon the formation date and (2) permit the joint venture to apply measurement-period guidance in accordance with ASC 805

Share Repurchases - In May 2023, the SEC adopted amendments to require most issuers to disclose daily quantitative share repurchase information quarterly. Issuers are required to provide, for each day on which a repurchase was conducted, the number of shares repurchased and the average price paid per share, among other information.

Software Accounting - In March 2023, FASB initiated a new project that marks the first time in decades that the U.S. accounting standard setter is revisiting accounting for software costs
. 
PCAOB - In March 2023, PCAOB proposed an update of “foundational” audit standards and a requirement that the deadline for filing final documentation after completion of an audit be trimmed to 14 days from 45 days.
​
Joint Venture Formations - In March 2023, FASB  will discuss comment letter feedback and issues for redeliberations on the proposed Accounting Standards Update, Business Combinations—Joint Venture Formations (Subtopic 805-60): Recognition and Initial Measurement. The Board also will discuss whether to proceed to drafting a final Accounting Standards Update for vote by written ballot.

​Climate-Change Disclosures - SEC is months away from finalizing its expansive new climate disclosure requirements as it juggles investor demands for more transparency, tech glitches, and the Republican party opposition and legal threat.  SEC has declined to give a timeline for finishing the climate regulations in recent public appearances, repeatedly pointing to thousands of comments that still need to be reviewed.
​
Joint Ventures -  In November 2022, the  FASB proposed that certain joint ventures (joint ventures under Topic 323), upon formation, use a new basis of accounting by applying most aspects of the acquisition method for business combinations. This means that joint ventures generally would recognize and initially measure their assets and liabilities at fair value (with certain exceptions that are consistent with the business combinations guidance). 

Executive Compensation - In November 2022, a new SEC rule directed US securities exchanges to establish standards that require listed issuers to have a written policy for the recovery of incentive-based compensation received by current and former executive officers in the event of a required accounting restatement. Listed issuers will need to file their recovery policy as an exhibit to their annual report and to provide other disclosures.

Segment Reporting - In October 2022, FASB issued a proposed ASU The proposed ASU, which would create a ‘significant expense principle’. Under this principle, an entity would disclose for each reportable segment the significant expense categories and amounts that are regularly provided to the CODM and included in each reported measure of a segment’s profit or loss. When applying this disclosure requirement, an entity would identify the segment expenses that are regularly provided to the CODM or ‘easily computable’ from information that is regularly provided to the CODM.

Accounting for and Disclosures of Software Costs - In October 2022, FASB staff summarized the Board’s recent decision to add a project on software costs to its technical agenda and potential alternatives being explored by the staff. 

Digital Assets - In September 2022, FASB discussed the scope criteria for the project. The Board decided that crypto assets that are held by an entity must meet the following criteria to be within the project’s scope:

1. Meet the definition of intangible asset as defined in the Codification Master Glossary
2. Do not provide the asset holder with enforceable rights to, or claims on, underlying goods, services, or other assets
3. Are created or reside on a distributed ledger or “blockchain”
4. Are secured through cryptography
5. Are fungible.

FASB also discussed the different entity types that would be within the scope of the guidance. It decided that all entities would be within the scope of the project and that throughout the remaining deliberations, FASB will consider the applicability of its decisions to those entities.
​
Goodwill - Since 2018, FASB appeared to be trending toward a change allowing companies that buy another business to amortize or write down goodwill impairments to zero over time. In June 2022, FASB halted a four-year effort to revamp how companies account for goodwill, with some board members indicating that the case made for a revision was not strong enough to justify an overhaul.

Obligations to Safeguard Cryptocurrencies - In March 2022, the SEC staff issued Staff Accounting Bulletin (SAB) 121, which outlines the staff’s views on how public entities should account for obligations to safeguard the cryptocurrencies of third parties. This SAB does not apply to entities that own and have control over those digital assets.

Climate Change Disclosures Proposal - In March 2022, SEC in a 3-1 vote issued Release Nos. 33-11042; 34-94478, The Enhancement and Standardization of Climate-Related Disclosures for Investors. This Release proposes that public companies provide certain climate-related information in their registration statements and annual reports. The amendments are intended to enhance and standardize certain climate-related disclosures in order to address investor demands for more consistent and comparable information about climate-related risks and impacts and supporting emissions disclosure.

Deferred Assets and Liabilities in Business Combinations - In October 2021, FASB issued ASU 2021-08, Accounting forContract Assets and Contract Liabilities from Contracts with Customers. This ASU requires that an acquirer in a business combination to recognize and measure acquired contract assets and acquired contract liabilities (usually recorded as deferred revenue) using revenue recognition guidance in ASC 606, Revenue from Contracts with Customers, as if it had originated the contracts. The objective of this guidance is to provide comparability after and before business combination by providing consistent recognition and measurement guidance for revenue contracts with customers.

Climate-Change Disclosures - In March 2021, SEC issued a statement requesting comments in light of demand for climate change information and questions about whether current disclosures adequately inform investors, public input is requested from investors, registrants, and other market participants on climate change disclosure.

SPACs - Following the increase in the number of special purpose acquisition companies (SPACs) and the related business combinations between SPACs and private target businesses (commonly referred to as “de-SPAC” transactions), an increase in regulatory scrutiny, particularly from the Securities and Exchange Commission, is emerging. In April 2021, SEC issued two statements — one related to the accounting treatment of warrants and one related to liability risk​. 

Joint Venture Accounting - ​FASB in its February 2021 meeting ​reached a tentative decision that a joint venture upon formation to measure its net assets (including goodwill) using the fair value of the joint venture as a whole. Therefore, a joint venture would measure its total net assets upon formation as the fair value of 100 percent of the joint venture’s equity immediately after formation.