Heads Up

This issue discusses the FASB’s deliberations related to its project on the accounting for and disclosure of digital assets at its August 31, 2022, meeting.

This issue discusses the SEC’s recently issued final rule, "Pay Versus Performance." The rule requires certain registrants to provide disclosures about executive pay and company performance within any proxy statement or information statement for which disclosures about executive compensation are required.

This issue discusses the FASB’s newly issued Accounting Standards Update (ASU) No. 2022-03, which (1) clarifies the guidance in ASC 820 on the fair value measurement of an equity security that is subject to a contractual sale restriction and (2) requires specific disclosures related to such an equity security. For public business entities, the amendments in the ASU are effective for fiscal years beginning after December 15, 2023, and interim periods within those fiscal years, with early adoption permitted. For all other entities, the ASU’s amendments are effective for fiscal years beginning after December 15, 2024, and interim periods within those fiscal years, with early adoption permitted for both interim and annual financial statements that have not yet been issued or made available for issuance.

This issue discusses certain recent activities undertaken by the PCAOB as a result of what a Board news release describes as the PCAOB’s “assessment of priorities that advance audit quality to protect the interest of investors.” Specifically, the newsletter highlights (1) the inaugural meetings of the PCAOB’s Investor Advisory Group and Emerging Issues Advisory Group, (2) the PCAOB’s adoption of new requirements for the lead auditor’s use of other auditors, and (3) the PCAOB’s standard-setting and research agendas.

This issue summarizes and compares key provisions of (1) the SEC’s March 2022 proposed rule on climate-related disclosure, (2) the International Sustainability Standards Board’s March 2022 proposed standards on general sustainability and climate reporting, and (3) the European Financial Reporting Advisory Group’s April 2022 proposed European Sustainability Reporting Standards developed in accordance with the European Commission’s proposed Corporate Sustainability Reporting Directive. The newsletter also discusses considerations for companies as they take action to prepare for the changing disclosure landscape.

This issue discusses the FASB’s newly issued Accounting Standards Update (ASU) No. 2022-02, Troubled Debt Restructurings and Vintage Disclosures, which eliminates the accounting guidance on troubled debt restructurings (TDRs) for creditors in ASC 310-40 and amends the guidance on “vintage disclosures” to require disclosure of current-period gross write-offs by year of origination. The ASU also updates the requirements related to accounting for credit losses under ASC 326 and adds enhanced disclosures for creditors with respect loan refinancings and restructurings for borrowers experiencing financial difficulty.