At-A-Glance

International

IASB – International Accounting Standards Board (www.ifrs.org) 

• Targeted Improvements to the Accounting for Internal-Use Software ASU 2025-06, issued September 18, 2025, “addresses changes in software development methods, increasing the operability of the recognition guidance for improved financial reporting.” Effective for all entities for annual reporting periods beginning after December 15, 2027, and interim reporting periods within those annual reporting periods. Early adoption is permitted as of the beginning of an annual reporting period.

• Derivatives Scope Refinements and Scope Clarification for Share-Based Noncash Consideration from a Customer in a Revenue Contract – ASU 2025-07 - An Amendment of the FASB Accounting Standards Codification, issued September 29, 2025, to “that addresses stakeholders’ concerns about (1) the application of derivative accounting to contracts with features based on the operations or activities of one of the parties to the contract and (2) the diversity in accounting for share-based noncash consideration from a customer that is consideration for the transfer of goods or services.” Effective for all entities for annual reporting periods beginning after December 15, 2026, and interim reporting periods within those annual reporting periods. Early adoption is permitted.

• Exposure Draft - Initial Measurement of Paid-in-Kind Dividends on Equity-Classified Preferred Stock, issued September 30, 2025, “to provide authoritative guidance on how an issuer should initially measure paid-in-kind (PIK) dividends on equity-classified preferred stock.” The comment period ends on October 27, 2025.
  

IFAC – International Federation of Accountants (www.ifac.org)

• International Public Sector Financial Accountability Index, issued September 23, 2025, “collects, verifies, and analyzes current financial reporting bases and frameworks used by federal and central governments around the world. It also provides an overview of public sector reporting trends.”
  

IFR4NPO - International Financial Reporting for Non-Profit Organisations (www.ifr4npo.org)

• New foundation to drive non-profit transparency globally, reported on October 1, 2025. The                             Chartered Institute of Public Finance and Accountancy (CIPFA), “will provide the long-term home for the International Non-Profit Accounting Standard (INPAS), a first-of-its-kind comprehensive accounting framework.”

IOSCO – International Organization of Securities Commissions (www.iosco.org)

• No new developments.

ACCA – Association of Chartered Certified Accountants (www.accaglobal.com)

• Internal control over sustainability data, reported released on October 7, 2025, “reveals that there is a real opportunity for accountancy, finance and internal audit professionals to drive the sustainability agenda by applying internal control principles to sustainability-related data.”  
  

Africa, Europe, India and the Middle East (AEIME)

FRC – Financial Reporting Council of the UK (www.frc.org.uk)

• Enhancing Auditor’s Reports - Proposed Revisions to UK Auditor Reporting Standards, ISA

   (UK) 700 – Forming and opinion and reporting on Financial Statements, ISA (UK) 701 – Communicating Key Audit Matters in the Independent Auditor’s report, ISA (UK) 720 – The Auditor's Responsibilities Relating to Other Information published October 1, 2025, “to simplify and declutter the auditor’s report, discourage boilerplate disclosures, and encourage the inclusion of  more relevant information to support investor decision-making.”

• ISA (UK) 240 - The Auditor's Responsibilities Relating to Fraud in an Audit of Financial    Statements, and ISA (UK) 570 - Going Concern, consultation published October 1, 2025. “Revisions to ISA 240 clarify auditors' responsibilities regarding fraud detection, strengthen risk assessment procedures, and enhance transparency in audit reports—particularly for publicly traded entities. Meanwhile, updates to ISA 570 improve how auditors evaluate whether companies can continue operating, following corporate failures that have damaged public confidence in auditing.” Consultation ends January 16, 2026.
  

ICAEW - Institute of Chartered Accountants in England and Wales (https://www.icaew.com/)

• No new developments.

EC – European Commission (https://ec.europa.eu/)

• No new developments.

EFRAG – European Financial Reporting Advisory Group (www.efrag.org)

• No new developments.

Americas, Asia, Australia and New Zealand (AAANZ)

AICPA & CIMA – American Institute of Certified Public Accountants (www.aicpa.org)

• No new developments

FASB – Financial Accounting Standards Board (www.fasb.org)

• Exposure Draft - Initial Measurement of Paid-in-Kind Dividends on Equity-Classified Preferred Stock, Proposed Accounting Standards Update Issued: September 30, 2025, to provide authoritative guidance on how an issuer should initially measure paid-in-kind (PIK) dividends on equity-classified preferred stock.  Comments Due: October 27, 2025.

• ASU 2025-07 — Derivatives and Hedging (Topic 815) and Revenue from Contracts with Customers (Topic 606) - Derivatives Scope Refinements and Scope Clarification for Share-Based Noncash Consideration from a Customer in a Revenue Contract issued September 29, 2025, “addresses stakeholders’ concerns about (1) the application of derivative accounting to contracts with features based on the operations or activities of one of the parties to the contract and (2) the diversity in accounting for share-based noncash consideration from a customer that is consideration for the transfer of goods or services.” Effective for all entities for annual reporting periods beginning after December 15, 2026, and interim reporting periods within those annual reporting periods. Early adoption is permitted.

• ASU 2025-06 — Intangibles—Goodwill and Other— Internal-Use Software (Subtopic 350-40) -  Targeted Improvements to the Accounting for Internal-Use Software, issued September 18, 2025, “updates the guidance on accounting for internal-use software costs” to “improve the operability of the guidance by removing all references to software development project stages so that the guidance is neutral to different software development methods, including methods that entities may use to develop software in the future.” Effective for all entities for annual reporting periods beginning after December 15, 2027, and interim reporting periods within those annual reporting periods. Early adoption is permitted as of the beginning of an annual reporting period.
  

GASB – Governmental Accounting Standards Board (www.gasb.org)

• No new developments.

COSO - The Committee of Sponsoring Organizations of the Treadway Commission (www.coso.org)

• No new developments.

PCAOB – Public Company Accounting Oversight Board (www.pcaob.org)

• Policy Statement Regarding Implementation of Paragraph .10A of AS 1105, Audit Evidence, PCAOB Release No. 2025-004, released September 18, 2025, stating “Paragraph .10A requires auditors to evaluate the reliability of external electronic information provided by the company by: (a) obtaining an understanding of the source and of the company’s process for receiving, maintaining, and processing the information; and (b) testing the information or the relevant controls. Paragraph .10A does not prescribe the nature, timing, or extent of procedures. Instead, the requirements are principles-based and scalable.”

SASB – Sustainability Accounting Standards Board (www.sasb.org)

• No new developments

SEC – Securities and Exchange Commission (www.sec.gov)

• No new developments