Government Controllers Speak

Discover how government controllers are leading the state and federal governments out of the pandemic in FEI's ForwardThinking Q2 Series.

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.

Fourth Quarter 2020

Navigating the Impact of PPP and Government Assistance

How should financial executives prepare for any new rounds of assistance? In this Q&A, Sean Prince, a Managing Director in Crowe's Assurance Professional Practice, discusses the top issues financial executives need to consider as they prepare their accounting for government pandemic assistance. Read More

Financial Reporting & Regulatory Update, Fourth Quarter 2020

During the fourth quarter of the 2020 calendar year, the Financial Accounting Standards Board (FASB) issued new accounting standards on the following topics:

  • Long-duration insurance contracts guidance effective date deferral
  • Codification improvements
  • Securities and Exchange Commission (SEC) registered debt offering disclosure requirements
  • Accounting for certain purchased callable debt securities

The FASB also issued proposals addressing goodwill accounting, acquired revenue contracts with customers in a business combination, reference rate reform, modifications of freestanding equity-classified forwards and options, and targeted improvements to lease accounting. Additionally, as part of its post-implementation review, the FASB discussed monitoring, evaluation, and costs and benefits of the current expected credit loss (CECL) standard. The FASB also discussed goodwill amortization considerations at its Private Company Council (PCC) meeting.

The SEC participated in the annual American Institute of CPAs (AICPA) Conference on Current SEC and PCAOB Developments, reported on and held a roundtable discussing U.S. credit market interconnectedness and COVID-19 risks, adopted final rules on resource extraction disclosures, addressed key market infrastructure for securities market data, proposed changes to the compensatory securities offering framework, simplified management’s discussion and analysis and other financial disclosures, provided guidance on Regulation S-K changes, amended the exempt offering framework, and updated its auditor independence rules.

The Public Company Accounting Oversight Board (PCAOB) reaffirmed its five-year strategic plan, posted a spotlight report on COVID-19, released resources on the new estimates and specialist requirements, issued an analysis on critical audit matters (CAMs), and provided insights into its inspections.

The AICPA updated its digital practice aid and continued to update available resources and guidance on the coronavirus and the Paycheck Protection Program.

The Center for Audit Quality (CAQ) released an analysis report on CAMs, a report on perspectives on management review controls, and its auditor committee transparency barometer report.

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.