Financial Reporting and Regulatory Update

The quarterly Financial Reporting and Regulatory Update is prepared by the Financial Education & Research Foundation (FERF) in collaboration with Crowe LLP, highlighting pronouncements from the U.S. SEC, FASB, PCAOB, and other regulators and standard-setters. Each update includes ASU Effective Date Checklists for Public and Non-Public Business Entities.

Second Quarter 2020

Changing Thinking About Information Security

How has the approach to information security changed since the outbreak of COVID-19? In this Q&A, Troy La Huis, a principal in the Crowe Risk Consulting area, discusses how companies have shifted from a prevention-only mindset to prevention detection and response.  Read More

Financial Reporting & Regulatory Update, Second Quarter 2020

During the second quarter of the 2020 calendar year, the Financial Accounting Standards Board (FASB) issued one new accounting standard to delay the effective date of Topic 606, “Revenue From Contracts With Customers,” and the effective date of Topic 842, “Leases,” for nonpublic business entities including not-for-profit (NFP) entities. The FASB also issued two staff Q&As related to impacts of COVID-19 on cash flow hedge accounting and accounting for lease concessions.

The Securities and Exchange Commission (SEC) released additional resources and guidance to address the impact of COVID-19 and provided guidance on the importance of disclosures, issued a new rule for acquisitions and dispositions of businesses and related pro forma information, provided temporary conditional relief for crowdfunding offerings, and proposed changes to good faith determinations for fair value.

The Public Company Accounting Oversight Board (PCAOB) posted updated information about how it is addressing the impact of COVID-19 and released a paper on cryptoassets.

The American Institute of Certified Public Accountants (AICPA) has continued to update its coronavirus resource center page, created a separate Paycheck Protection Program (PPP) resources page, released new technical questions and answers on accounting for loans under the PPP, issued for public comment two working drafts on insurance entities issues, and released a special report on financial reporting considerations related to COVID-19.

The Center for Audit Quality (CAQ) established a COVID-19 resources page.

In addition to these highlights from the quarter, we have included recent developments from the Governmental Accounting Standards Board (GASB).

Checklists for the effective dates of FASB Accounting Standards Updates (ASUs) and GASB statements are also available.

Listen to FEI's interview with Crowe's Troy La Huis, Cybersecurity As a Competitive Advantage: Crowe Quarterly Insight.