Heads Up Newsletter

This Heads Up discusses FASB Accounting Standards Update No. 2025-05, Measurement of Credit Losses for Accounts Receivable and Contract Assets, which amends ASC 326-20 to provide a practical expedient and an accounting policy election.

This Heads Up discusses the accounting under ASC 740 for income tax effects of the new legislation known as the “One Big Beautiful Bill Act.” It highlights our current understanding of the business tax provisions of the legislation that may have a more substantive impact on financial statements in the period of the law’s enactment.

This Heads Up discusses FASB Accounting Standards Update (ASU) No. 2025-03, Determining the Accounting Acquirer in the Acquisition of a Variable Interest Entity, which amends the guidance in ASC 805. The ASU is intended to improve comparability between business combinations that involve variable interest entities and those that do not.

This Heads Up discusses an entity’s presentation and disclosure requirements upon its adoption of FASB Accounting Standards Update (ASU) No. 2023-09, Improvements to Income Tax Disclosures. The ASU, which the FASB issued in December 2023, requires entities to consistently categorize and provide greater disaggregation of information in the rate reconciliation. They must also further disaggregate income taxes paid.

This Heads Up discusses FASB Accounting Standards Update No. 2025-04, Clarifications to Share-Based Consideration Payable to a Customer, which clarifies the guidance in ASC 606 and ASC 718 on the accounting for share-based payment awards that are granted by an entity as consideration payable to its customer. The ASU is intended to reduce diversity in practice and improve existing guidance, primarily by revising the definition of a “performance condition” and eliminating a forfeiture policy election for service conditions associated with share-based consideration payable to a customer.

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.