Financial Reporting and Regulatory Update

The quarterly Financial Reporting and Regulatory Update is prepared by the Financial Education & Research Foundation (FERF) in collaboration with Crowe LLP, highlighting pronouncements from the U.S. SEC, FASB, PCAOB, and other regulators and standard-setters. Each update includes ASU Effective Date Checklists for Public and Non-Public Business Entities.

Second Quarter 2022

Putting a SOC in Crypto

Rich Perilloux is a principal in the IT assurance group within audit and assurance at Crowe. Rich has over 20 years of experience in information technology (IT) auditing and has a Certified Information Systems Auditor (CISA) certification. Currently, Rich's primary focus is in IT assurance for financial statement audits and attestation services including SOC reporting. In the emerging area of digital assets, Rich has a specialized focus on IT risks and impact on financial statement audits and SOC reporting; and is involved in the firm's development of audit methodology for digital assets.

Read More

Financial Reporting & Regulatory Update, Second Quarter 2022

During the second quarter of the 2022 calendar year, the Financial Accounting Standards Board (FASB) issued one new standard on the fair value measurement of equity securities subject to contractual sale restrictions and a new proposal on the deferral of reference rate reform and amendments to the definition of the Secured Overnight Financing Rate (SOFR) swap rate.

The Securities and Exchange Commission (SEC) issued a statement on importance of independence; remarked on market structure, enforcement landscape, swaps, climate-related disclosures proposal, special purpose acquisition companies proposal, financial markets, cybersecurity; proposed environmental, social, and governance (ESG) disclosures for certain investment advisors and investment companies and changes to the Names Rule for funds; extended the comment period for climate-related disclosures; reopened comment periods for recovery of erroneously awarded compensation and for private fund advisers and Regulation ATS proposals; issued guidance on crypto assets and geopolitical risk considerations; and released its updated regulatory agenda. The SEC also announced its 2022 examination priorities.

The Public Company Accounting Oversight Board (PCAOB) announced new advisory board members, held the first meetings for each of the two new advisory boards, updated its standard-setting agenda, adopted new requirements for lead auditor’s use of other auditors, and requested comments on estimates and specialists audit requirements. The American Institute of Certified Public Accountants (AICPA) and the Chartered Institute of Management Accountants (CIMA) updated their digital assets practice aid.

In addition to these highlights from the quarter, we have included recent developments from the Governmental Accounting Standards Board (GASB).

Checklists for the effective dates of FASB Accounting Standards Updates and GASB statements are provided.