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…
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),…
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…
How should companies account for transferable tax credits under U.S. GAAP? The Financial Accounting Standards Board (FASB) voted in May 2026 to advance a project on the accounting treatment of nonrefundable transferable tax credits — including the Inflation Reduction Act (IRA) clean energy credits under IRC §6418, CHIPS and Science Act semiconductor credits, and One…
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 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,…
