Outlook
This year’s guide is much shorter than previous editions. After several very busy years, FASB standard-setting activity has slowed down to a more manageable level after pushback from financial statement preparers on the pace and scale of accounting guidance updates. The new FASB chair undertook an invitation to comment seeking feedback on future standard setting. New guidance is likely to be more investor focused and will include projects on segments, interim reporting, and targeted income tax disclosures. Other high-priority items for 2023 include digital assets, software costs, and environmental credits. FASB also removed several long-running projects with no cost-effective path forward, including the balance sheet classification of debt and distinguishing liabilities from equity.
Guidance Effective in 2023 for Calendar Year-End Entities
| ASU | Standard & FORsights™ | Effective Dates Reporting Periods Beginning After | |
|---|---|---|---|
| PBE (not SRC) | All Other Entities | ||
| ASC 326 | Credit Losses (CECL) An Updated Look at CECL | Already Effective | December 15, 2022* |
| 2017‐04 | Intangibles—Goodwill and Other (Topic 350) Goodwill Impairment Test Simplified | Already Effective | December 15, 2022* |
| 2022‐04 | Disclosure of Supplier Finance Program Obligations New Disclosures for Supply Finance Arrangements | Disclosures – Annual and interim periods beginning after December 15, 2022 Rollforward – Fiscal years beginning after December 15, 2023 | |
| CECL Adopted | All Other Entities | ||
| 2022‐02 | Troubled Debt Restructurings and Vintage Disclosures FASB Eliminates TDR Accounting | December 15, 2022 | Upon adoption of CECL |
*as amended
Guidance Effective in 2024 for Calendar Year-End Entities
| ASU | Standard & FORsights | Effective Dates Reporting Periods Beginning After | |
|---|---|---|---|
| PBE | All Other Entities | ||
| 2020-06 | Accounting for Convertible Instruments and Contracts in an Entity’s Own Equity Easier Rules for Debt Equity Classification | Already Effective | December 15, 2023 |
| 2021-08 | Business Combinations (Topic 805): Accounting for Contract Assets and Contract Liabilities from Contracts with Customers New Business Combination Guidance for Contract Assets & Liabilities | December 15, 2022 | December 15, 2023 |
| 2022-01 | Fair Value Hedging—Portfolio Layer Method FASB Approves Portfolio Method for Hedge Accounting | December 15, 2022 | December 15, 2023 |
Guidance Effective in 2025 for Calendar Year-End Entities
| ASU | Standard & FORsights | Effective Dates Reporting Periods Beginning After | |
|---|---|---|---|
| PBE (not SRC) | All Other Entities | ||
| 2018-12 | Targeted Improvements to the Accounting for Long‐Duration Contracts What You Need to Know: Long‐Duration Insurance Contracts | December 15, 2022 | December 15, 2024* |
| 2022-05 | Financial Services—Insurance (Topic 944): Transition for Sold Contracts Relief on Long‐Duration Insurance Transition | December 15, 2022 | December 15, 2024 |
| 2022-03 | Fair Value Measurement of Equity Securities Subject to Contractual Sale Restrictions Prepared for New Fair Value Guidance for Restricted Equity Securities? | December 15, 2022 | December 15, 2024 |
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