FASB Seeks Input on Future Projects to Refresh Accounting Standards
The Financial Accounting Standards Board (FASB) is calling on stakeholders to provide feedback on potential new projects that will shape the future of generally accepted accounting principles (GAAP). With a deadline of June 30, the board is looking to refresh its agenda and identify areas where existing standards need updating.
Stakeholders Weigh In on Priorities
Initial input from over 200 stakeholders, including investors, report preparers, and academics, suggests that major changes to GAAP are not necessary at this time. As a result, many of the proposed topics for standard-setting efforts are focused on targeted improvements rather than sweeping reforms.
Hot-Button Issues Remain
Despite this, the 36-page Invitation to Comment-Agenda Consultation report reveals that some stakeholders are still seeking clearer guidance on key issues such as accounting for cryptocurrency, goodwill, employee stock ownership plans, and revenue recognition. These areas are likely to remain a priority for the FASB as it moves forward.
A New Era of Focus
This latest agenda prioritization effort marks the first time the FASB has reassessed its focus since FASB Chair Richard Jones took the helm in 2020. The previous slate of priorities led to significant updates, including new income statement expense rules and a narrowly-focused crypto standard.
Recent Updates and Future Directions
In November, the FASB issued new income statement expense rules, requiring public companies to provide more detailed information on certain expenses. Additionally, the board issued new income tax accounting rules, mandating companies to disclose more information on tax payments by jurisdiction. Depending on stakeholder feedback, the FASB may revisit previous guidance, including its crypto accounting standards.
Next Steps
The FASB is now seeking input on its proposed agenda, with a focus on targeted improvements to existing standards. As the board considers the feedback it receives, it may prioritize new projects that address areas such as the initial measurement, recognition, or de-recognition of crypto assets. With the deadline for comments fast approaching, stakeholders are encouraged to make their voices heard.
Leave a Reply