Q1 Accounting and Financial Reporting Developments

During the first quarter of the 2025 calendar year, the Financial Accounting Standards Board (FASB) issued two Accounting Standards Updates: one to clarify the effective date of the disaggregation of income statement expenses standard and one to remove Securities and Exchange Commission (SEC) paragraphs related to Staff Accounting Bulletin (SAB) 121. The FASB also issued one new proposal addressing codification improvements and one invitation to comment on the future standard-setting agenda.

The SEC:

• Announced changes in leadership 
• Announced the new crypto task force and identified its new members
• Released statements on meme coins, capital formation, and climate-related disclosures
• Announced accommodations allowing companies to submit draft registration statements for nonpublic view
• Held an AI roundtable
• Discussed AI’s impact on operations and disclosures
• Rescinded SAB 121 and Staff Legal Bulletin 14L
• Extended compliance deadlines for covered clearing agencies, fund names rules, and Form PF
• Provided exemptive relief from Exchange Act Rule 13f-2 and Form SHO
• Published new and updated Compliance and Disclosure Interpretations

This report also covers updates from the Public Company Accounting Oversight Board, the American Institute of Certified Public Accountants, the Center for Audit Quality, and the Governmental Accounting Standards Board.