Second quarter accounting and financial reporting developments

Sydney Garmong, Alissa Doherty, Brian Archambeault, Tony Boras

During the second quarter of 2021, the Financial Accounting Standards Board issued a new standard on modifications or exchanges of freestanding equity-classified written call options. It also issued proposals related to hedge accounting guidance improvements and discount rate for lessees that are not public business entities.

Also during the quarter, the Securities and Exchange Commission addressed environmental, social, and governance (ESG) investing, reporting, and costs; the London Interbank Offered Rate; special purpose acquisition companies; and more. The Public Company Accounting Oversight Board approved the formation of a new standards advisory group and issued documents related to the staff’s outlook on and audit committee resources for 2021 inspections.

In addition to these highlights from the quarter, this report covers updates from the American Institute of Certified Public Accountants, the Center for Audit Quality, the Governmental Accounting Standards Board, and more.

Second quarter accounting and financial reporting developments
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