In-depth analysis of the latest FASB announcements and updates to US GAAP. Understand how these changes impact your corporate financial reporting and compliance.
What is SEC Regulation Crypto Assets, and does it change how I raise capital or report digital assets? The SEC proposed a new exempt-offering framework for crypto asset investment contracts on August 12, 2026, and FASB the same day proposed clarifying when certain digital assets — including some stablecoins — count as cash equivalents. Both…
What is the FASB changing about hedge accounting in 2026? On June 17, 2026, the FASB issued a proposed hedge accounting update to Topic 815 with three targeted changes: hedging interest rate risk on held-to-maturity securities, using any tenor of SOFR, and expanding eligible net investment hedging instruments. Comments are due August 17, 2026. If…
Do private companies have to change their income tax disclosures? Yes — in part. FASB ASU 2023-09, Income Taxes (Topic 740): Improvements to Income Tax Disclosures, requires all entities to disclose income taxes paid (net of refunds) by federal, state, and foreign jurisdiction — and by any individual jurisdiction equal to or greater than 5%…
How does FASB ASU 2025-06 change accounting for internal-use software? The FASB issued ASU 2025-06, Intangibles—Goodwill and Other—Internal-Use Software (Subtopic 350-40): Targeted Improvements, to modernize software cost guidance written in 1998 for today’s agile development. The biggest change: it ELIMINATES the old project-stage (waterfall) model for deciding when to start capitalizing costs. Instead, capitalization begins…
What is IFRS 20, and who does it affect? The International Accounting Standards Board (IASB) issued IFRS 20, Regulatory Assets and Regulatory Liabilities — a new IFRS Accounting Standard for companies subject to a specific type of rate regulation (utilities that supply electricity, water, and gas, where a regulator controls how much they can charge…
How do you account for carbon credits and emission allowances under U.S. GAAP now? On May 19, 2026, the FASB issued Accounting Standards Update (ASU) 2026-02, creating a brand-new Codification Topic — ASC 818, Environmental Credits and Environmental Credit Obligations. Until now, U.S. GAAP had no specific guidance for carbon offsets, renewable energy certificates (RECs),…
When does an SEC registrant have to file financial statements for a business it acquired? Under SEC Regulation S-X Rule 3-05, a registrant (including a company doing an IPO) must file separate pre-acquisition financial statements of a “significant” acquired or to-be-acquired business — with a parallel rule (3-14) for significant real estate operations. Significance is…
What did the SEC propose to make going public easier? The U.S. Securities and Exchange Commission issued a set of proposed rule changes intended to encourage IPOs. The headline item: raise the threshold to be a “large accelerated filer” from $700 million to $2 billion in public float (the higher status would have to be…
What is the FASB hearing from investors right now? At its May 28, 2026 meeting, the FASB’s Investor Advisory Committee (IAC) flagged where today’s financial statements fall short for investors — and where new disclosure may be coming. Top themes: (1) data center financing and private credit are growing complex and opaque; (2) whether certain…
How does FASB ASU 2026-01 change the accounting for PIK dividends on preferred stock? In April 2026, the FASB issued Accounting Standards Update No. 2026-01, Equity (Topic 505): Initial Measurement of Paid-in-Kind Dividends on Equity-Classified Preferred Stock. It fills a gap in U.S. GAAP that had produced diversity in practice. The new rule: an issuer…
What does ASU 2023-05 require for joint venture formation accounting? Under FASB Accounting Standards Update 2023-05, joint ventures must record assets received and liabilities assumed at fair value at the formation date — adopting a new basis of accounting on day one. The guidance is in new Subtopic 805-60 and is effective prospectively for any…
What did the FASB decide on equity method targeted improvements at the May 13, 2026 Board meeting? The FASB tentatively decided to apply a single “significant influence” threshold for the equity method regardless of entity type, remove the 20% presumption, broaden the board-of-directors indicator to functionally-equivalent governing bodies, and require general-partner significant-influence treatment for noncontrolling…
What is ASU 2023-09 and how are companies handling the new income tax disclosures in their first year? ASU 2023-09 requires public business entities to disclose an eight-category income tax rate reconciliation in both percentages and dollar amounts, plus jurisdictional disaggregation by state and country — and Fortune 500 first-year adoption shows California and Canada…
What is the new PIK dividends measurement rule under ASU 2026-01? Issuers must measure paid-in-kind dividends on equity-classified preferred stock by multiplying the stated PIK dividend rate by the liquidation preference of the shares — eliminating the prior diversity in practice between discretionary and nondiscretionary approaches. On April 23, 2026 the FASB issued ASU 2026-01,…
What are the key FERC GAAP accounting differences for power and utility companies? FERC uses equity-method accounting for all subsidiaries regardless of ownership, classifies certain non-utility activities “below the line,” includes accumulated cost of removal in accumulated depreciation, and lacks the current/long-term distinction common in US GAAP — creating systematic reconciliation work for every regulated…
What changed for internal use software capitalization under ASU 2025-06? The FASB eliminated the old project-stage gating and replaced it with a single “probable-to-complete” threshold — finally aligning US GAAP with how agile software development actually works in 2026. If you’ve ever tried to apply the 1998 internal-use software rules to a modern agile sprint,…
What are the new FASB hedge accounting changes for 2026? The FASB approved targeted improvements in February 2026 that allow hedging of interest rate risk for held-to-maturity (HTM) debt securities, remove the OIS parameter from the SOFR benchmark rate, and expand net investment hedging for float-to-float cross-currency swaps. These changes apply to all entities and…
What is GASB 103 and how does it change government financial reporting? GASB 103 is a major update to the government financial reporting model, effective for fiscal years beginning after June 15, 2025, that redefines operating vs. nonoperating revenues, introduces subsidy reporting, and strengthens MD&A requirements for state and local governments. If you work in…
Demystifying the Q1 2026 Accounting Roundup! Ready to catch up on the latest accounting and regulatory changes without the headache? Let’s break down the essential updates from Q1 2026, from crypto rules to climate disclosures, so you can stay ahead of the curve. Hey everyone! Welcome back to another update where we translate complex…
FASB Updates Internal-Use Software Accounting! The FASB has finally modernized the old rules for capitalizing internal-use software costs to reflect today’s agile development world. Dive in to see how ASU 2025-06 impacts your balance sheet and capitalization thresholds. If you’ve ever tried to apply late-90s accounting rules to a modern tech project, you…
Are you struggling with the accounting fallout from the Supreme Court’s tariff ruling? The recent invalidation of the IEEPA tariffs has left many financial professionals scratching their heads. In this comprehensive guide, we’ll break down exactly how to handle anticipated refunds, liability derecognition, and customer contracts so you can navigate this complex situation with…
Finally, Clear Rules for Government Grants? Discover how the new FASB ASU 2025-10 changes the game for business entities, eliminating the guesswork of accounting for government assistance. To be honest, if you’ve ever had to account for a government grant as a business entity, you probably felt like you were navigating a maze without…
FASB’s New ASU 2025-07 Explained! This new update tackles two tricky accounting issues: a new scope exception for derivatives (Topic 815) and clarifying rules for share-based payments from customers (Topic 606). Let’s break down what you need to know. Let’s be real, seeing a new FASB Accounting Standards Update (ASU) drop can make…
Confused by accounting for purchased loans? You’re not alone. A new FASB rule is finally fixing a “double count” problem that has puzzled accountants for years. We explain the old flaw, the new solution, and what it means for you. Have you ever looked at a complex accounting rule and just thought, “That… doesn’t…
Confused by the latest SEC Financial Reporting Manual updates? You’re not alone. This guide breaks down the crucial changes to S-K, S-X, and PCAOB standards, explaining exactly what they mean for your company’s financial disclosures. Have you ever felt that just when you’ve mastered the current SEC regulations, a new batch of updates drops?…
Decoding FASB’s ASU 2025-07: Are you navigating the complexities of derivative accounting or uncertain how to handle share-based payments from customers? This comprehensive guide breaks down the latest FASB update, offering clarity and practical examples to simplify your accounting practices. Have you ever found yourself staring at a contract—maybe an ESG-linked bond or a…
