Third Quarter — 2021

by Magnus Orrell and Joseph Renouf, Deloitte & Touche LLP

Welcome to Quarterly Accounting Roundup: Third Quarter — 2021. Accounting and financial reporting highlights in the third quarter of 2021 included the following:

The FASB’s issuance of (1) an Accounting Standards Update (ASU) on accounting for certain leases with variable lease payments and (2) a proposed ASU that would enhance its guidance on measuring the fair value of equity securities.
The SEC’s publication of (1) a sample letter to companies on climate-change disclosures and (2) a request for comment on digital engagement practices for broker-dealers and investment advisers.
The PCAOB’s release of a final rule on determinations under the Holding Foreign Companies Accountable Act.
The Center for Audit Quality’s (CAQ’s) release of (1) a publication on the current accounting and auditing requirements for climate-related risks, (2) a report on external auditors’ responsibilities related to illegal acts and fraud, (3) a discussion document on monitoring inflation in certain countries, (4) a publication on environmental, social, and governancereporting, and (5) highlights of the March 2021 joint meeting between the CAQ and the SEC staff.
The International Accounting Standards Board’s (IASB’s®) publication of exposure drafts that would (1) make a narrow-scope amendment to the transition requirements of IFRS 17, Insurance Contracts, and (2) reduce the disclosure requirements for eligible subsidiaries.

Conclusions of the FASB, GASB, IASB, and IFRS Interpretations Committee are subject to change at future meetings and generally do not affect current accounting requirements until an official position (e.g., Accounting Standards Update or IFRS Accounting Standards) is issued. Official positions are determined only after extensive deliberation and due process, including a formal vote.

Further information about the standard setters can be found on their respective Web sites as follows: www.fasb.org (FASB); https://www.fasb.org/page/PageContent?pageId=/about-us/advisory-groups/eitf/openissuesandproposedagenda.html (EITF); https://www.aicpa-cima.com/home (AICPA & CIMA); www.sec.gov (SEC); https://pcaobus.org (PCAOB); https://fasab.gov (FASAB); www.gasb.org (GASB); and www.ifrs.org (IASB and ISSB).

Quarterly Accounting Roundup is prepared by members of Deloitte’s National Office. The purpose of this publication is to briefly describe key regulatory and professional developments that have recently occurred in the field of accounting and to provide links to locations where additional information can be found on each topic. Readers seeking additional information about a topic should review the information referred to in the hyperlinks and not rely solely on the descriptions included in this communication.

This publication contains general information only and Deloitte is not, by means of this publication, rendering accounting, business, financial, investment, legal, tax, or other professional advice or services. This publication is not a substitute for such professional advice or services, nor should it be used as a basis for any decision or action that may affect your business. Before making any decision or taking any action that may affect your business, you should consult a qualified professional advisor. Deloitte, its affiliates, and related entities shall not be responsible for any loss sustained by any person who relies on this publication.

The services described herein are illustrative in nature and are intended to demonstrate our experience and capabilities in these areas; however, due to independence restrictions that may apply to audit clients (including affiliates) of Deloitte & Touche LLP, we may be unable to provide certain services based on individual facts and circumstances.

As used in this document, “Deloitte“ means Deloitte & Touche LLP, a subsidiary of Deloitte LLP. Please see www.deloitte.com/us/about for a detailed description of the legal structure of Deloitte LLP and its subsidiaries.