Cracking the Code on 2023 Financial Reporting Trends: Conference Recap.

TLDR:

• Key highlights from the 2023 AICPA & CIMA SEC and PCAOB Conference include discussions on segment reporting, deferred offering costs, statement of cash flows, and fair value measurements.
• Regulators emphasized the importance of compliance with new ASU 2023-07 for segment reporting, careful treatment of deferred offering costs, accurate representation of the statement of cash flows, and proper application of fair value measurements.

Deciphering the Latest Financial Reporting Trends: Key Takeaways from the 2023 AICPA & CIMA SEC and PCAOB Conference

In the December 2023 AICPA & CIMA Conference, industry experts discussed key financial reporting trends related to SEC, PCAOB, FASB, and IASB. Major points covered in the conference include:
1. **Segment Reporting:** The conference highlighted the implications of newly released ASU 2023-07 related to segment reporting. ASU mandates detailed segment information for public companies, including key expenses and data.
2. **Deferred Offering Costs:** The SEC noted that only costs directly related to an offering can be deferred, excluding general overhead like management salaries.
3. **Statement of Cash Flows:** The SEC emphasized the importance of the SOCF as a primary financial statement, requiring equal focus and attention from companies.
4. **Fair Value Measurements:** Proper judgment is crucial in applying ASC 820 to assets like cryptocurrencies, with a need to identify the primary market for determining fair value.
5. **Critical Accounting Estimates:** Disclosing critical accounting estimates is essential for understanding the uncertainty and impact on a company’s financial health.
6. **Non-GAAP Financial Measures:** The SEC continues to scrutinize non-GAAP measures, emphasizing the need for accurate labeling and explanation of adjustments.

The speakers from the SEC also discussed fair value application in loan measurements, critical accounting estimates, and ongoing attention to non-GAAP financial measures. The conference underscored the importance of clarity, accuracy, and adherence to regulatory standards in financial reporting.

To stay updated on the latest financial reporting trends, contact a Marcum Financial Accounting and Advisory Services (FAAS) Advisor.