Key Points

  • The Financial Accounting Standards Board (FASB) issued an invitation on Friday for stakeholders to provide feedback on new projects it should undertake in the future, as it updates its agenda and determines which standards—the rules that form the basis of generally accepted accounting principles (GAAP)—need revision. The deadline for feedback is June 30.
  • The board has received initial input from approximately 200 stakeholders, including investors, report preparers, and academics, indicating that "there is no reason at this time for significant changes to GAAP," and therefore many of the topics suggested for inclusion in the standards-setting work under this initiative fall within the narrow category of "targeted improvements."
  • Nevertheless, the 36-page "Invitation to Comment—Agenda Consultation" report, which FASB is seeking comments on, also shows that some stakeholders still desire clearer guidance on hot-button issues such as accounting for crypto assets, goodwill, employee stock ownership plans, and revenue recognition.

Deeper Dive

This re-evaluation of agenda priorities is the first since FASB's last agenda consultation, which was conducted in 2020 under Chairman Richard Jones, who took office that year. The previous list of priorities led FASB to issue new rules on income statement expense disclosure in November 2023, requiring public companies to present in tabular form in the notes to financial statements more detailed breakdowns of certain expenses—such as inventory purchases, employee compensation, depreciation, and amortization of intangible assets. CFO Dive previously reported on this.

Additionally, in 2023, FASB issued a narrow-scope new standard on crypto assets, which for the first time incorporated specific guidance for digital assets into GAAP, requiring companies to account for Bitcoin and other crypto assets at fair value rather than as intangible assets. FASB also issued new rules on income tax accounting, requiring companies to disclose more information in their reports and to report jurisdictions (such as countries or states) where their total tax payments exceed 5%.

A FASB spokesperson said via email that, based on the stakeholder feedback received, FASB may revisit some of its previously issued guidance, including guidance related to crypto asset accounting.

According to the report currently open for public comment, FASB has received feedback from some stakeholders that the latest crypto asset guidance (formally known as "Update 2023-08") "does not address the initial measurement, recognition, or derecognition of crypto assets, and FASB should prioritize starting a project to address these areas."