Can you capitalize AI software costs under US GAAP? Sometimes. US GAAP has no AI-specific rule — the existing internal-use software guidance in ASC 350-40 still controls. If AI software costs are project-specific, measurable, and incurred after the application development stage begins, they may be capitalized. General-purpose AI subscriptions are expensed. Every quarter our Los…
How does ASU 2026-03 change investment company fair value? It requires an investment company to apply a discount when a contractual sale restriction prevents it from selling an equity security on the measurement date. The amendment is scoped to investment companies and to equity securities only, is effective for annual periods beginning after December 15,…
What is a Korean IFRS reporting package, and why does your parent need one every month? A Korean IFRS reporting package — often written K-IFRS reporting package — is the standardized monthly submission a US subsidiary sends its Korean parent so the parent can consolidate the subsidiary’s results under Korean IFRS (K-IFRS). It contains a…
Are IFRS 15 and ASC 606 still converged? Substantially, yes — but the details still shift the timing and amount of revenue. This IFRS 15 vs ASC 606 guide walks through ten differences that change what dual reporters book and disclose, grounded in the standards themselves rather than firm commentary. The joint issuance of IFRS…
What is a foreign private issuer under SEC rules? A foreign private issuer is a non-US company that meets the SEC’s Rule 405 / Rule 3b-4 tests — 50% or less of voting securities held by US residents, or, if more, none of the US-contacts factors triggered. FPIs use Form 20-F and Form F-1, may…
Does ASU 2026-03 change fair value sale restrictions for investment funds? Yes — but only for investment companies within the scope of Topic 946. From adoption, those funds must incorporate a discount for contractual sale restrictions when measuring the fair value of an equity security, and disclose the size of that discount. Effective for annual…
Which FASB standards take effect in 2026? The largest calendar-year first-effective ASUs are 2023-09 (income tax disclosures, private companies), 2024-04 (induced conversions of convertible debt, all entities), 2025-05 (AR credit losses practical expedient, PCC), and 2024-01 (profits interest awards, private companies). This post is a plain-English guide to the FASB effective dates 2026 that will…
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…
