New Subtopic for Crypto Assets to be Added to Intangibles Section of U.S. GAAP.
FASB plans to add a new subtopic number for crypto assets into the intangible assets section of the codification of accounting standards by year-end, according to a September 29 joint educational session by FASB and the IASB. The rules were developed despite not meeting the “pervasiveness” and “diversity among companies” checklist that is typically used by standards setters to determine whether to add a topic to their technical agendas, the discussions indicated. “We did have diversity in practice but not diversity within companies that were applying the intangibles guidance,” FASB member Christine Botosan explained. “And then on the pervasiveness issue, I really struggled with adding this project because of the pervasiveness question,” she said. “If that was the only reason I was being asked to add this project I still wouldn’t be there today, because as we keep tracking we ask every investor advisory group, ‘how many of you are actually investing in companies that do this?’ no hands go up. ‘How many of you are actually accepting this or holding it on your balance sheet,’ no hands go up.” Her remarks were in response to questions posed by IASB Members Bruce Mackenzie and Ann Tarca on FASB’s decision to take up the topic.
Public Input Sought on Proposed Technical Upgrades to 2024 GAAP Taxonomy
FASB’s taxonomy staff on October 2 issued a proposal about technical changes that were designed to improve the utility of the 2024 GAAP Taxonomy. The staff issued Proposed Technical and Other Conforming Improvements for the 2024 GAAP Taxonomy (Release Notes) File Reference 2024-2500, for public comment to reduce inconsistencies in application and “enhance the intended use of the elements while minimizing the effect on (1) instance documents prepared using prior versions of the Taxonomy and (2) on users and systems that consume these instance documents.” Taxonomy users should weigh in on whether they agree with the proposal and whether there are additions that should be made, according to release notes. The proposal is part of an ongoing effort to improve the utility of the Taxonomy in ways that have been identified, including from discussions by the Taxonomy Advisory Group and Industry Resource Group, and other development projects, release notes explain. Comments should be submitted by November 1.
Statements on Standards for Tax Services Issued
The AICPA on September 27, 2023, said that its Tax Executive Committee (TEC) has issued Statements on Standards for Tax Services (SSTS) that CPAs must comply with when they work on tax matters.
The committee issued:
- SSTS 1, General Standards for Members Providing Tax Services (TS section 100)
- SSTS 2, Standards for Members Providing Tax Compliance Services, Including Tax Return Positions (TS section 200)
- SSTS 3, Standards for Members Providing Tax Consulting Services (TS section 300)
- SSTS 4, Standards for Members Providing Tax Representation Services (TS section 400).
The guidance notes that the TEC is designated to promulgate standards of practice, and the AICPA Code of Professional Conduct requires compliance with these standards. Furthermore, many state boards of accountancy also incorporate the SSTSs as part of their professional rules of conduct for CPAs. “These statements apply to all members providing tax services, regardless of the jurisdictions in which they practice,” the preface states. “Interpretations of these statements may be issued as guidance to assist in understanding and applying the statemesnts. Any such interpretations have the same authority” as defined in Interpretations and Other Guidance in the AICPA Code. The four standards are effective January 1, 2024.