Financial Reporting and Regulatory Update

The quarterly Financial Reporting and Regulatory Update is prepared by the Financial Education & Research Foundation (FERF) in collaboration with Crowe LLP, highlighting pronouncements from the U.S. SEC, FASB, PCAOB, and other regulators and standard-setters. Each update includes ASU Effective Date Checklists for Public and Non-Public Business Entities.

First Quarter 2022

Financial Reporting & Regulatory Update, First Quarter 2022

During the first quarter of the 2022 calendar year, the Financial Accounting Standards Board (FASB) issued two new standards, one on the portfolio layer method of hedge accounting and one on credit losses guidance on troubled debt restructurings (TDRs) and vintage disclosures.

The Securities and Exchange Commission (SEC) issued statements on materiality and financial statement errors, regulating lawyers, the FASB agenda consultation, the Public Company Accounting Oversight Board (PCAOB), cybersecurity, dynamic regulations, and climate change pledges; issued a reminder of broker-dealer risk; proposed climate-related and cybersecurity disclosures and amendments to beneficial ownership reporting and whistleblower rules, among other proposals; and reopened the comment periods for the securities loan reporting and pay versus performance proposals.

The PCAOB announced the creation of two new advisory boards and swore in the new chair and a new board member. The American Institute of Certified Public Accountants (AICPA) and the Chartered Institute of Management Accountants (CIMA) issued a digital assets practice aid, an environmental, social, and governance (ESG)-related practice aid, and a new healthcare technical Q&A.

In addition to these highlights from the quarter, we highlight that there are no new final standards or proposals from the Governmental Accounting Standards Board (GASB).

Checklists for the effective dates of FASB Accounting Standards Updates and GASB statements are provided.