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FASB to Issue One New Accounting Standard and Three Proposals This Quarter

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Summary

The FASB plans to issue one new accounting standard and three proposals by the end of this reporting quarter. The new standard will extend a simple accounting approach to other federal tax credit programs, and two of the proposals will be published by the end of March. The third proposal will be issued by the end of the year. The FASB does not usually announce exact dates for when documents will be issued, and considers approximate timing and the educational cycle of the private company sector in order to best solicit public comment. Companies will be given a certain amount of time to comment on each of the proposals.

Q&As

What new accounting standard is the FASB issuing this quarter?
The FASB is issuing a new accounting standard on investments in tax credit structures.

What are the three proposals the FASB plans to publish by the end of March?
The three proposals are accounting for and disclosure of crypto assets that are fungible and deemed to be intangible assets; disclosure rules about income taxes companies pay in the U.S. and in foreign countries; and a proposal on profits interest awards.

When will the new accounting standard take effect for public companies?
The new accounting standard will take effect next year for public companies.

How much time do companies have to submit comments on the FASB's proposals?
Companies have 75 days to submit comments on each of the proposals.

How does the FASB decide when to issue a proposal?
The FASB considers approximate timing for when to issue a proposal, takes into account the educational cycle of the private company sector, and factors in the need to solicit public comment from companies.

AI Comments

👍 This article provides a helpful overview of the FASB's plans to issue accounting standards this quarter and the timing of their release. It also offers insight into the board's strategy in terms of when to issue proposals and standards.

👎 This article fails to address potential delays in the issuance of documents due to technical issues, leaving readers with an incomplete picture of the FASB's plans.

AI Discussion

Me: It's about the FASB issuing one new accounting standard and three proposals this quarter. They plan to issue a new standard on investments in tax credit structures, and two proposals on accounting for and disclosure of crypto assets, and disclosure rules about income taxes companies pay in the U.S. and in foreign countries.

Friend: Wow, that's a lot of changes. What do you think the implications are?

Me: I think it's a sign that the FASB is committed to bringing greater transparency and accuracy to financial reporting. The new standard and proposals will help companies better understand their investments in tax credit structures and will provide better disclosure of income taxes paid in different countries. It will also help companies better account for and disclose crypto assets, which is a relatively new and growing asset class. All of this will help ensure that companies are providing the most accurate information possible to investors and regulators.

Action items

Research the new accounting standard on investments in tax credit structures and the two proposals on accounting for and disclosure of crypto assets and disclosure rules about income taxes companies pay in the U.S. and in foreign countries.
Monitor the FASB’s technical agenda for updates on the timing of the issuance of the new standard and proposals.
Submit comments on the proposals when they are issued to ensure your voice is heard in the process.

Technical terms

FASB: Financial Accounting Standards Board. The FASB is a private, non-profit organization that sets accounting standards for public and private companies in the United States.
GAAP: Generally Accepted Accounting Principles. GAAP is a set of accounting standards and principles issued by the Financial Accounting Standards Board (FASB).
PCAOB: Public Company Accounting Oversight Board. The PCAOB is a nonprofit corporation established by the Sarbanes-Oxley Act of 2002 to oversee the audits of public companies in the United States.
US Securities and Exchange Commission: The US Securities and Exchange Commission (SEC) is an independent federal agency responsible for protecting investors and maintaining the integrity of the securities markets.