Heads Up Newsletter

This Heads Up discusses the FASB’s proposed Accounting Standards Update issued on April 30, 2025, which would introduce an incremental framework to simplify the determination of whether contemporaneous exchanges of cash between a debtor and a creditor should be accounted for as extinguishments of debt under ASC 470-50. Under this framework, an issuer would be required to consider new criteria in ASC 470-50-40-9 before performing the 10 percent cash flow test under the current guidance in ASC 470-50-40-10 through 40-12A.

This Heads Up discusses the European Commission’s recent proposed omnibus legislation, which aims to significantly reduce the sustainability and due diligence reporting burdens for entities that are currently within the scope of the Corporate Sustainability Reporting Directive (CSRD), the EU Taxonomy (EUT), and the Corporate Sustainability Due Diligence Directive (CSDDD).

This Heads Up discusses the SEC’s recently issued SAB No. 122, which rescinds the guidance in SAB 121. SAB 121 previously required an entity to recognize a liability and corresponding asset for its obligation to safeguard crypto assets. The rescission of SAB 121 will have a significant impact on the financial statements of entities that were previously within the scope of SAB 121.

This Heads Up was updated to reflect clarifications made in ASU 2025-01 regarding the effective date for interim reporting.

This Heads Up discusses the FASB’s recently issued proposed Accounting Standards Update (ASU) Environmental Credits and Environmental Credit Obligations (Topic 818), which was released as part of the Board’s project on environmental credit programs.

This Heads Up summarizes insights from the 2024 AICPA & CIMA Conference on Current SEC and PCAOB Developments. The conference brings together key stakeholders to discuss developments, emerging issues, and trends in accounting, financial reporting, and auditing, as well as related matters. Among other topics discussed at this year’s conference, several speakers addressed how the SEC’s priorities are expected to shift because of the recent election and incoming administration.