During the third quarter of the 2021 calendar year, the Financial Accounting Standards Board (FASB) issued two new accounting standards addressing the following topics:
- Accounting for certain leases with variable lease payments
- Amendments to Securities and Exchange Commission (SEC) paragraphs
The FASB also issued a proposal during the quarter on fair value measurements of certain equity securities.
The SEC discussed the sustainability of environmental, social, and governance (ESG) rules; addressed ESG disclosures, the role of corporate directors in ESG issues, and fund and diversity disclosures; issued a statement on International Financial Reporting Standards sustainability standards; addressed topics for ESG stakeholders; remarked on digital engagement practices, crypto assets, and disclosures; addressed stronger investor protections for crypto assets and the lack of guidance on digital asset trading; requested comment on digital practices of broker-dealers and investment advisers; approved the Nasdaq board diversity rule; and named a new director of enforcement and a senior adviser to the chair.
The Public Company Accounting Oversight Board issued its annual broker-dealer inspection report, and two board members announced their intentions to resign.
The American Institute of Certified Public Accountants (AICPA) issued a working draft on current expected credit loss implementation guidance for broker-dealers. The AICPA also released new guidance on accounting for certain grants under COVID-19 programs.
The Center for Audit Quality published information on climate-related disclosures and related risk considerations for financial statements and observations on ESG reporting assurance from S&P 500 companies.
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 in the appendix.