Financial Accounting Standards Board

We at the FASB extend our very best wishes to you and yours this holiday season and through the New Year.

The Financial Accounting Standards Board (FASB) has published a proposed Accounting Standards Update (ASU) that would establish authoritative guidance on the accounting for government grants received by business entities. Stakeholders are encouraged to review and provide input on the proposed ASU by March 31, 2025. https://bit.ly/4hXlERF

The Financial Accounting Standards Board (FASB) has published an Invitation to Comment (ITC) that gives stakeholders the opportunity to provide feedback on whether it should pursue a project on intangibles. Stakeholders are asked to review and provide comments on the ITC by May 30, 2025: https://bit.ly/4fsbnKV

The Board of Trustees of the Financial Accounting Foundation (FAF) has announced the appointment of six new members to the Financial Accounting Standards Advisory Council (FASAC). The new FASAC members will serve a one-year term that begins on January 1, 2025, and may be reappointed for additional terms. The new appointees are: •Stacy Harrington, Vice President, Corporate Accounting, Microsoft Corporation •Joe Holmes, Vice President, Chief Accounting Officer, Thermo Fisher Scientific •Susanne Skaggs, Chief Accounting Officer, Bechtel Group •Yoni Engelhart, CFA, Managing Partner, Schilit Forensics •Eric Johnson, Executive Vice President and Chief Investment Officer, CNO Financial •W. Howard Morris MBA, CPA, CFA, President and Chief Investment Officer of The Prairie & Tireman Group, member of the Board of Directors of Owens Corning, member of the Board of Directors of Virtus Investment Partners. “The incoming FASAC members are outstanding candidates drawn from the ranks of investors and financial reporting professionals,” said Edward Bernard, chair of the FAF Board of Trustees. “The Trustees are pleased to welcome them to the Council and look forward to their contributions to its discussions with the FASB.” “I want to extend my thanks to our departing FASAC members for their years of dedicated service to the Council,” said FASAC Chair Michael M. Morrow. “They brought to our group discussions diverse perspectives and a shared commitment to the FASB’s standard-setting mission to develop financial accounting and reporting standards that provide decision-useful information to investors and other capital allocators.”

The Financial Accounting Foundation (FAF) has published the findings of its most recent review of the effectiveness of the Private Company Council (PCC). The full report is available for download on the FAF website: https://bit.ly/3P2L5nz “Good governance prompts us to conduct periodic reviews of our important advisory councils,” said FAF Trustee and Co-Chair of the Standard-Setting Process Oversight Committee Tim Ryan, the head of technology and business enablement at Citigroup, Inc. “I am pleased that stakeholders largely expressed support for the PCC while making excellent suggestions for potential improvements to make it an even more effective body.” “We are grateful to the many stakeholders who freely shared their diverse perspectives about the PCC,” added FAF Trustee and Co-Chair of the Standard-Setting Process Oversight Committee Manju Ganeriwala, the former treasurer of the Commonwealth of Virginia. “We are confident that the PCC can sustain its excellent track record of providing thoughtful, expert advice and counsel to the FASB for many years to come.”

FASB has published an Accounting Standards Update that improves the relevance and consistency in application of the induced conversion guidance in FASB Accounting Standards Codification® Subtopic 470-20, Debt—Debt with Conversion and Other Options. https://bit.ly/4iaw80j The amendments in the ASU are effective for annual reporting periods beginning after December 15, 2025, and interim reporting periods within those annual reporting periods. Early adoption is permitted.

Somewhere, a PhD candidate is tackling big accounting challenges—are they in your program? The FASB Emerging Scholar Award celebrates exceptional doctoral research that contributes to accounting standard-setting. With nominations opening in early 2025, now is the time to start thinking about who among your students has the potential to be the next Emerging Scholar. Stay tuned and help us uncover the next star in accounting research! Be sure to visit the Emerging Scholar Award Page for future updates. https://bit.ly/4fZGDlw

FASB has published a proposed Accounting Standards Update intended to improve the financial accounting for and disclosure of financial activities related to environmental credits and environmental credit obligations. The changes are expected to provide investors with additional decision-useful information by improving the (1) understandability of financial accounting and reporting information about environmental credits and environmental credit obligations and (2) comparability of that information by reducing diversity in practice. Stakeholders are encouraged to review and provide input on the proposed ASU by April 15, 2025. https://bit.ly/3VKtUuT

The Financial Accounting Standards Board (FASB) has issued the report on Post-Implementation Review: Revenue from Contracts with Customers (Topic 606). https://bit.ly/4fJw9GJ The report discusses how the FASB staff conducted the Revenue PIR process, which included outreach with more than 2,200 stakeholders from diverse backgrounds, key implementation support provided throughout the adoption of the revenue standard, and using what was learned during the PIR process to improve the revenue standard and, more broadly, the standard-setting process.

The Financial Accounting Standards Board (FASB) has published an Invitation to Comment (ITC) that gives stakeholders the opportunity to provide feedback on financial key performance indicators (Financial KPIs). Stakeholders are asked to review and provide comment on the ITC by April 30, 2025. https://bit.ly/3OfumwV