Fourth quarter 2021 accounting and financial reporting developments

Sydney Garmong, Alissa Doherty, Tony Boras

During the fourth quarter of 2021, the Financial Accounting Standards Board issued four new standards addressing a private company practical expedient for equity-classified share-based awards, acquired revenue contracts in a business combination, discount rate guidance for lessees, and disclosures about government assistance. It also issued proposals related to interim disclosure requirements, troubled debt restructurings and vintage disclosures, and supplier finance program disclosures.

Also during the quarter, the Securities and Exchange Commission (SEC) participated in the annual American Institute of CPAs (AICPA) and Chartered Institute of Management Accountants (CIMA) Conference on Current SEC and Public Company Accounting Oversight Board (PCAOB) Developments; addressed independent audits and effective audit committee oversight, London Interbank Offered Rate transition, special purpose acquisition companies, and crypto assets; adopted new proxy rules; issued guidance on spring-loaded executive compensation and shareholder proposals; proposed amendments to proxy voting advice rules and to increase securities lending market transparency; and more. The PCAOB adopted a final inspection and investigations rule, issued a preview of 2020 inspection observations, and announced new board members.

In addition to these highlights from the quarter, this report covers updates from the AICPA, the Center for Audit Quality, the Governmental Accounting Standards Board, and more.

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