No final accounting standard updates were issued in Q2 2024; however, progress was made on several projects. In Q2, the FASB also announced members of its newly reconstituted Emerging Issues Task Force (EITF). The EITF is tasked with assisting the FASB through the timely identification of financial accounting issues and development of proposed solutions.

Current Projects

Looking at the FASB’s technical agenda, we can expect the next milestones for the following projects in the second half of 2024:

• Final ASU for Induced Conversions of Convertible Debt Instruments (~Q3)
• Exposure Draft for Accounting for and Disclosure of Software Costs (~Q3)
• Exposure Draft for Environmental Credit Programs (~Q3)
• Exposure Draft for Accounting for Government Grants (~Q3)
• Exposure Draft for Share-Based Consideration Payable to a Customer (~Q3)
• Exposure Draft for Topic 815- Derivatives Scope Refinements (~Q3)
• Exposure Draft for Topic 815- Hedge Accounting Pronouncements (~Q3)
• Exposure Draft for Interim Reporting-Narrow-scope Improvements (~Q3)
• Final Chapter 6: Measurement, of Concepts Statement No. 8, Conceptual Framework for Financial Reporting. (~Q3)
• Final ASU for Disaggregation- Income Statement Expenses (~Q4)

The final standard on Disaggregation- Income Statement Expenses will impact all entities. The Board has tentatively agreed on the following for the income statement expenses disaggregation project:

• all disclosures will be required for interim reporting periods, except for the entity’s definition of selling expenses
• prospective application of the guidance, with an option for retrospective application
• effective for fiscal years beginning after December 15, 2026, and interim periods beginning after December 15, 2027, with early adoption allowed

Exposure Drafts

As of June 30, 2024, no Exposure Drafts were open for comment.  

Meetings

The following summarizes the various meetings with the FASB. Full recaps and more details are available at FASB.org.

• The FASB met on April 3, 2024, to discuss potential paths forward for the Accounting for Government Grants project. It decided to leverage the accounting framework within IAS 20, Accounting for Government Grants and Disclosure of Government Assistance, and to include targeted improvements to the guidance.
• The FASB met on April 10, 2024, to discuss derivatives scope refinements and hedge accounting improvements under Topic 815, Derivatives and Hedging.
• The Private Company Council (PCC) met on April 18, 2024, to discuss accounting for and disclosure of software costs, accounting for government grants, stock compensation disclosures, credit losses implementation, and scope allocation of profits interest awards.
• The FASB met on May 8, 2024, to continue deliberations on proposed ASU, Income Statement-Reporting Comprehensive Income- Expense Disaggregation Disclosures (Subtopic 220-40); Disaggregation of Income Statement Expenses, post-implementation review of ASC 606, and Concepts Statement No. 8, Conceptual Framework for Financial Reporting-Chapter 6: Measurement.
• The Investor Advisory Committee (IAC) met on May 16, 2024, to discuss the disaggregation of income statement expenses, accounting for and disclosure of software costs, accounting for environmental credit programs, and emerging accounting issues and trends.
• The FASB met on June 4, 2024, to discuss Hedge Accounting Improvements under Topic 815 and accounting for government grants. 
• The FASB met on June 12, 2024, to discuss accounting for environmental credit programs, agenda prioritization, and share-based consideration payable to a customer.
• The EITF met on June 14, 2024, to discuss EITF Issue No. 24-A “Determining the Accounting Acquirer.”
• The FASB met on June 18, 2024, to discuss accounting for and disclosure of software costs and whether to proceed to drafting a proposed ASU. 
• The PCC met on June 24, 2024, to discuss PCC agenda prioritization, hedge accounting improvements and induced conversions of convertible debt instruments.
• The PCC and the Small Business Advisory Committee (SBAC) met on June 25, 2024, to discuss PCC agenda prioritization, accounting for and disclosure of software costs, accounting for government grants, derivatives scope refinements, and accounting alternatives and changes in accounting principles.
• The SBAC met on June 25, 2024, to discuss disaggregation- income statement expenses and accounting for environmental credit programs.
• The FASB met on June 26, 2024, to discuss disaggregation- income statement expenses and directed the staff to draft a final ASU.