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…
Facing the GAAP Gap? Many Japanese companies with U.S. subsidiaries are struggling with complex American accounting rules. Discover the key challenges and how to navigate them to avoid costly penalties! Have you ever felt like you’re speaking a different language at work? That’s exactly what many Japanese companies are experiencing with their U.S. operations,…
US GAAP vs. IFRS: What’s the Real Difference? This guide breaks down the key similarities and differences between the two major accounting standards in simple terms, helping you understand how they impact global business and investment. Have you ever looked at a financial report from a company in Europe and felt like something was…
