FASB News

Report Explains Process to Establish New Rulemaking Priorities

FASB has published a report about its process for establishing new technical and research agendas, stressing investor-focused topics top the list of its priorities. As a result of an agenda consultation outreach, which is done every five years, three new topics were added to the board’s technical agenda, and seven to its research agenda. The board will continue to consider agenda requests as part of its regular standards-setting process, Chair Richard Jones and Technical Director Hillary Salo wrote jointly in the report. The report marks the end of board redeliberations on the comment letter responses to Invitation-to-Comment (ITC) 2021-004, “Agenda Consultation,” issued last year to solicit public feedback about FASB priorities for 2022 to 2026. Board deliberations on the feedback concluded on June 29. “While the feedback from all of our stakeholder groups was tremendous, the increased participation of investors in our process has already shaped our agenda,” Jones and Salo wrote. “The top seven most frequently cited investor priorities are now included on either our technical agenda or are undergoing further analysis as part of our research agenda.”

Comments Sought on Proposed Supplemental GAAP Taxonomy

Users can now weigh in on a FASB proposal to update the U.S. GAAP Taxonomy, a body of tags and codes companies use to file reports electronically. FASB is seeking public comment about the Proposed 2022 Q3 Supplemental GAAP Taxonomy, which includes improvements for the SEC’s Securities Offering Reform for Closed-End Investment Companies, Releases 33–10771, 34–88606, and IC–33836. The releases require that a business development company submit financial statement information using Inline XBRL, the board’s taxonomy team said. The proposal also addresses tag disclosures required by SEC Staff Accounting Bulletin (SAB) 121, which covers the accounting for obligations to safeguard crypto-assets that an entity holds for platform users. Comments should be submitted by August 1 to [email protected]

AICPA News

AICPA Issues 2022 Accounting and Auditing Guide for Not-for-Profits

The AICPA has published the 2022 edition of the Audit and Accounting Guide for Not-for-Profit Entities. “From leases to revenue recognition to grants and contracts to auditor report changes, you’ve had a lot going on in the not-for-profit (NFP) financial arena,” the AICPA stated. “Whether you’re already an expert in NFP audit and accounting standards or just getting started, we’ve got the practical guidance you need.” Key features of the interpretive guidance include an intuitive format based on common errors and questions and a before-and-after context to better illustrate the various changes. The guide states that the AICPA Not-for-Profit Entities Expert Panel and the Guide Task Force considered relevant guidance issued through March 1, 2022, to develop this edition. “However, this guide does not include all audit, accounting, reporting, regulatory, and other requirements applicable to an entity or a particular engagement,” the guide notes. “This guide is intended to be used in conjunction with all applicable sources of relevant guidance.”

The 2022 edition includes updates on the following topics:

  • Auditor reporting changes
  • Statement on Auditing Standards (SAS) 142, Audit Evidence (AU-C Section 500)
  • SAS 143, Auditing Accounting Estimates and Related Disclosures (AU-C Section 540)
  • SAS 145, Understanding the Entity and Its Environment and Assessing the Risks of Material Misstatement (AU-C Section 315)
  • Leases
  • Revenue recognition.