Heads Up

This Heads Up discusses tentative decisions made by the FASB at its September 6, 2023, meeting related to its proposed Accounting Standards Update (ASU), “Intangibles — Goodwill and Other — Crypto Assets (Subtopic 350-60).” On the basis of comments received on the proposed ASU, the Board directed its staff to draft a final standard. Under the new guidance, an entity would be required to subsequently measure certain crypto assets at fair value, with changes in fair value included in net income in each reporting period.

This Heads Up discusses the FASB’s recently issued Accounting Standards Update No. 2023-05, “Business Combinations — Joint Venture Formations (Subtopic 805-60): Recognition and Initial Measurement,” under which an entity that qualifies as either a joint venture or a corporate joint venture as defined in the ASC master glossary (1) must initially measure its assets and liabilities at fair value on the formation date of the joint venture and (2) may establish a measurement period in a manner consistent with the measurement-period guidance in ASC 805-10 for business combinations when it identifies and measures the net assets received.

This Heads Up discusses the E.U. Corporate Sustainability Reporting Directive (CSRD) as well as the recently adopted European Sustainability Reporting Standards (ESRS), which provide supplementary guidance for companies within the scope of the CSRD.

This Heads Up discusses the FASB’s proposed Accounting Standards Update (ASU) "Income Statement — Reporting Comprehensive Income — Expense Disaggregation Disclosures (Subtopic 220-40): Disaggregation of Income Statement Expenses." The proposed ASU would amend the guidance on the presentation of income statement expenses by requiring public business entities to further disaggregate expenses in the footnotes to their financial statements.

This Heads Up discusses discusses the SEC’s recently issued final rule, Cybersecurity Risk Management, Strategy, Governance, and Incident Disclosure. Under the final rule, registrants must provide enhanced and standardized disclosures regarding “cybersecurity risk management, strategy, governance, and incidents.”

This Heads Up discusses the FASB’s recently issued proposed Accounting Standards Update (ASU) “Financial Instruments — Credit Losses (Topic 326): Purchased Financial Assets.” The proposed ASU would amend the guidance in ASU 2016-13, ”Measurement of Credit Losses on Financial Instruments,” on the accounting upon acquisition for financial assets acquired in (1) a business combination, (2) an asset acquisition, or (3) the consolidation of a variable interest entity that is not a business.