Q4 2025 Accounting and Financial Reporting Developments

During the fourth quarter of the 2025 calendar year, the Financial Accounting Standards Board (FASB) issued five final standards: one on accounting for purchased loans under the current expected credit loss model, one on hedge accounting improvements, one establishing comprehensive guidance on accounting for government grants received by business entities, one providing narrow-scope improvements to interim reporting disclosures, and one covering codification improvements. The FASB also added projects to its technical agenda related to digital assets, including cash-equivalent classification and crypto asset transfers, and released its post-implementation review report on the leases standard.

Additionally, the Securities and Exchange Commission (SEC) delivered numerous public statements and policy remarks focused on revitalizing U.S. capital markets, modernizing reporting and governance frameworks, and supporting innovation while maintaining investor protections. The commission released its 2026 examination priorities, announced compliance outreach events related to amendments to Regulation S-P, updated its Financial Reporting Manual, and issued guidance addressing shareholder proposal challenges, government shutdown impacts, Regulation NMS compliance deadlines, and filing fee taxonomies. The SEC also continued to advance its “Project Crypto” initiative through remarks and statements addressing digital assets, IPO revitalization, security-based swap dealer thresholds, and broader regulatory reform efforts.

We also cover Q4 updates from the Public Company Accounting Oversight Board, the Center for Audit Quality, and the Governmental Accounting Standards Board.