Guidance

Effective Date

ASU 2023-05, Business Combinations—Joint Venture Formations (Subtopic 805-60): Recognition and Initial Measurement

Effective prospectively for all joint venture formations with a formation date on or after January 1, 2025. Prospectively beginning Q1’25 10-Q.

ASU 2023-08, Intangibles—Goodwill and Other—Crypto Assets (Subtopic 350-60): Accounting for and Disclosure of Crypto Assets

Effective for fiscal years beginning after December 15, 2024, including interim periods within those fiscal years. Quarterly disclosure beginning Q1’25 10-Q.

ASU 2023-09, Income Taxes (Topic 740): Improvements to Income Tax Disclosures

Effective for fiscal years beginning after December 15, 2024. Annual disclosure beginning 2025 10-K.

ASU 2024-01, Compensation—Stock Compensation (Topic 718): Scope Application of Profits Interest and Similar Awards

Effective for fiscal years beginning after December 15, 2024, including interim periods within those fiscal years. Quarterly disclosure beginning Q1’25 10-Q.

ASU 2024-02, Codification Improvements—Amendments to Remove References to the Concepts Statements

Effective for fiscal years beginning after December 15, 2024, including interim periods within those fiscal years. Quarterly disclosure beginning Q1’25 10-Q.

Exposure Draft

Summary

Comment Deadline

Invitation to Comment—Agenda Consultation

The FASB requests feedback on improvements to financial accounting and reporting needed to:

1. Provide investors with better, more useful financial statement information that will directly influence their capital allocation decisions
2. Reduce unnecessary cost and complexity
3. Maintain and improve the FASB  Codification. 

This ITC seeks broad stakeholder feedback on the following:

1. Whether the financial accounting and reporting topics described in this ITC are areas for which there is potential for significant improvement.
2. The priority and urgency of addressing each topic.
3. Which potential solution(s) the FASB should consider.
4. For any potential solution, the expected benefits and expected costs.
5. Whether there are other financial accounting and reporting topics beyond those described in this ITC that the FASB should consider adding to its agenda and the priority and urgency of addressing those topics. This would include accounting associated with emerging accounting issues, changes in business models, and potential areas of convergence.

6/30/25

Invitation to Comment—Recognition of Intangibles

The purpose of this Invitation to Comment (ITC) is to solicit stakeholder feedback on whether the Board should pursue standard setting on intangibles. This ITC is focused on the initial recognition of intangibles. Specifically, the FASB would like to understand:

1. Whether there is a pervasive need to improve generally accepted accounting principles (GAAP) related to the accounting for and disclosure of intangibles (that is, is there a case for change)
2. What intangibles, or groups of intangibles, the FASB should consider addressing
3. What potential solution(s) the FASB should consider—including whether the potential solution or solutions are narrow for a specific intangible or could be applied broadly to a group of intangibles—and the expected benefits and expected costs of the potential solution(s)
4. Whether different accounting for intangibles should exist depending on how the asset is obtained (internally developed, acquired in a business combination, or acquired in an asset acquisition)
5. What information about intangibles an investor utilizes (or would utilize) for its analysis and how that information influences the investor’s capital allocation decisions.

5/30/25

Invitation to Comment—Financial Key Performance Indicators for Business Entities

This Invitation to Comment (ITC) is being issued as part of the Financial Accounting Standards Board’s (FASB or Board) research project on financial key performance indicators (Financial KPIs) for business entities. The FASB staff is issuing this ITC to solicit additional feedback on potential standard setting for Financial KPIs, including the following:

1. Should Financial KPIs be standardized and, if so, which ones?
2. Should Financial KPIs be required or permitted to be disclosed in an entity’s generally accepted accounting principles (GAAP) financial statements and, if so, when and for what types of entities?

4/30/25

Proposed Accounting Standards Update—Codification Improvements

The amendments in this proposed Update would affect a wide variety of Topics in the Codification and would apply to all reporting entities within the scope of the affected accounting guidance. The amendments are not expected to have a significant effect on current accounting practice or result in significant costs to most entities

4/22/25

Proposed Accounting Standards Update—Environmental Credits and Environmental Credit Obligations (Topic 818)

The amendments in this proposed Update would improve GAAP by providing specific authoritative guidance for environmental credits and environmental credit obligations. An entity would be required to present its compliance environmental credit assets separately from its environmental credit obligation liabilities on the consolidated balance sheet.

Environmental Credits

An entity would be required to recognize an environmental credit as an asset when it is probable that the environmental credit will be (1) used to settle an environmental credit obligation or (2) transferred to another party in an exchange transaction. Environmental credits recognized as assets would be initially measured at cost unless received through a grant, which would be measured at the amount of transaction costs incurred. An entity would be required to recognize costs to obtain all other environmental credits as an expense when incurred.

Environmental Credit Obligations

An entity would be required to recognize an environmental credit obligation liability when events occurring on or before the reporting date result in an environmental credit obligation. An entity would be required to initially and subsequently measure an environmental credit obligation liability using the carrying amount of the compliance environmental credits that the entity holds and expects to use to settle that obligation at the reporting date.

4/15/25