Q2 2026 Accounting and Financial Reporting Developments

During the second quarter of the 2026 calendar year, the Financial Accounting Standards Board (FASB) issued two final standards: one on the initial measurement of paid-in-kind dividends on equity-classified preferred stock and one establishing guidance for environmental credits and environmental credit obligations. The FASB also issued two proposals addressing application of Topic 715 to market-return cash balance plans and targeted improvements to hedge accounting guidance in Topic 815.

The Securities and Exchange Commission (SEC) announced a leadership change in the Division of Enforcement, published a draft strategic plan, and issued several proposals focused on public company reporting, capital formation, market structure, and disclosure modernization. These included proposals to rescind the climate-related disclosure rules, permit optional semiannual reporting, simplify filer status, modernize registered offerings, amend Form PF, and rescind certain Regulation NMS rules. The SEC also issued a concept release on the Consolidated Audit Trail, established joint data standards under the Financial Data Transparency Act of 2022, addressed Treasury market clearing implementation, rescinded its “no-deny” settlement policy, and continued to discuss crypto assets, privacy, artificial intelligence, and onchain finance.

The Public Company Accounting Oversight Board (PCAOB) named a chief operating officer, issued proposed amendments to QC 1000, formed an Inspections Modernization Council, updated its standard-setting and rulemaking projects, and released its 2025 annual report. The PCAOB also published perspectives from conversations with audit committee chairs, released its annual broker-dealer inspection report, discussed inspection modernization and strategic priorities, and held meetings of its Investor Advisory Group and Standards and Emerging Issues Advisory Group.

The American Institute of Certified Public Accountants approved a new auditing standard on external confirmations, requested feedback on proposed strategic plans for its ethics and peer review bodies, and launched a global initiative focused on the future of finance and accounting.

The Center for Audit Quality announced a leadership transition, submitted comment letters on GENIUS Act implementation and PCAOB strategic priorities, and published a resource addressing fraud risks related to artificial intelligence, deepfakes, and digital assets.

Checklists for the effective dates of FASB Accounting Standards Updates are provided in the appendix.