Message from John Epperson, Managing Principal, Financial Services
Dear FIEB readers,
Environmental, social, and governance (ESG) is a current topic of focus for many stakeholders including investors, preparers, regulators, customers, and suppliers. If you are just starting to evaluate ESG matters or if you are far down the path, you will be interested in this month’s developments including a climate disclosure proposal from the SEC; announcement of the SEC Division of Examination’s 2022 priorities, which include ESG; and a request for comment on draft climate risk management principles from the FDIC.
On the accounting front, the FASB issued updated credit losses guidance for troubled debt restructurings and vintage disclosures and new hedging guidance for the portfolio layer approach. Meanwhile, the PCAOB released its annual summary of conversations with audit committee chairs, and federal financial institution regulators solicited input on bank mergers, finalized rules creating certain exemptions from suspicious activity reports, and increased supervision on fair lending and unfair, deceptive, and abusive acts and practices.
Finally, digital or crypto assets remain a focus of various stakeholders. President Biden issued an executive order addressing the responsible development of digital assets, the FDIC released guidance requiring notification of activities related to crypto assets, and the SEC issued crypto-asset accounting guidance in the form of a staff accounting bulletin.
We also include various other topics of interest in this report. All of these topics present unique financial reporting, governance, and risk challenges, and we will continue to keep you informed.