We are pleased to release MaloneBailey's December 2023 issue of The Crunch, our newsletter highlighting recent accounting, regulatory and tax updates. Please note that the updates provided in this newsletter are not a comprehensive list.

We encourage you to visit the SEC, FASB and IRS websites for more information as well as a complete list of updated rules, regulations and proposals.  We invite you to contact us should you have any questions about the information provided in this issue.  Please visit our website to review archived versions of this newsletter containing past accounting, regulatory and tax updates.

The MaloneBailey Team

www.malonebailey.com

What's the Crunch?



Featured Podcast

• Networking and Making Connections in the CPA Industry

Recent Accounting & Regulatory Updates



Recent FASB & AICPA Updates

• FASB Accounting Standards Updates - Accounting Standards Update No. 2023-06 — Disclosure Improvements — Codification Amendments in Response to the SEC’s Disclosure Update and Simplification Initiative 
• Hedge Accounting Improvements –FASB Discusses Hedge Accounting Improvements 
• Software Costs –FASB Discusses Accounting and Disclosure for Software Costs
• Preparation, Compilation, and Review Engagements –New Edition of AICPA Audit and Accounting Guide Published 

Recent SEC & PCAOB Updates

• Release No. 34-98737: Reporting of Securities Loans 

Extra Crunch

• AICPA & CIMA’s Tax Section Odyssey Podcast Series

About MaloneBailey, LLP

Networking and Making Connections in the CPA Industry

Summary - There are many good practices to ensure you make and foster professional connections so that you have an expansive network of professionals in your back pocket. These connections serve a wide array of purposes from job opportunities to someone that could simply supply you with valuable career advice or serve as a referral source for new business leads. For the latest edition of Everybody Counts, we discussed with Carolina Uzcategui, MaloneBailey's Recruiter, the importance of these connections and share tips on how to keep a strong relationship with those connections.



Simply click on the image below to listen to the podcast. For this podcast and many more, please visit the Resources section of our website.

FASB Accounting Standards Updates - Accounting Standards Update No. 2023-06 — Disclosure Improvements — Codification Amendments in Response to the SEC’s Disclosure Update and Simplification Initiative 

Summary - The FASB has issued Accounting Standards Update (ASU) No. 2023-06, Disclosure Improvements: Codification Amendments in Response to the SEC’s Disclosure Update and Simplification Initiative, that incorporates certain U.S. Securities and Exchange Commission (SEC) disclosure requirements into the FASB Accounting Standards Codification™. The amendments in the ASU are expected to clarify or improve disclosure and presentation requirements of a variety of Codification Topics, allow users to more easily compare entities subject to the SEC’s existing disclosures with those entities that were not previously subject to the requirements, and align the requirements in the Codification with the SEC’s regulations.

In SEC Release No. 33-10532, Disclosure Update and Simplification, issued August 17, 2018, the SEC referred certain of its disclosure requirements that overlap with, but require incremental information to, generally accepted accounting principles to the FASB for potential incorporation into the Codification.

The ASU incorporates into the Codification 14 of the 27 disclosures referred by the SEC. They modify the disclosure or presentation requirements of a variety of Topics in the Codification. The requirements are relatively narrow in nature. Some of the amendments represent clarifications to, or technical corrections of, the current requirements. Because of the variety of Topics amended, a broad range of entities may be affected by one or more of those amendments.

For entities subject to the SEC’s existing disclosure requirements and for entities required to file or furnish financial statements with or to the SEC in preparation for the sale of or for purposes of issuing securities that are not subject to contractual restrictions on transfer, the effective date for each amendment will be the date on which the SEC removes that related disclosure from its rules. For all other entities, the amendments will be effective two years later. However, if by June 30, 2027, the SEC has not removed the related disclosure from its regulations, the amendments will be removed from the Codification and not become effective for any entity.

For more information, click here.

© 2023 CCH Incorporated and/or its affiliates. All rights reserved. Used with permission.

Hedge Accounting Improvements – FASB Discusses Hedge Accounting Improvements 

Summary - As reported in its “Summary of Decisions” publication, the FASB met on October 11, 2023, and discussed comment letter feedback on proposed amendments related to two issues included in the 2019 proposed ASU, Derivatives and Hedging (Topic 815): Codification Improvements to Hedge Accounting—Dual Hedging Relationships and Use of the Term Prepayable in the Shortcut Method. The FASB also discussed a third issue that arose as a result of the cessation of LIBOR—Net Written Options as Hedging Instruments. 

For more information, click here.

© 2023 CCH Incorporated and/or its affiliates. All rights reserved. Used with permission.

Software Costs –FASB Discusses Accounting and Disclosure for Software Costs  

Summary - As reported in its “Summary of Decisions” publication, the FASB met on September 20, 2023, and discussed recent feedback received from a wide variety of stakeholders on the recognition of software costs. 

For more information, click here.

© 2023 CCH Incorporated and/or its affiliates. All rights reserved. Used with permission.

Preparation, Compilation, and Review Engagements –New Edition of AICPA Audit and Accounting Guide Published 

Summary - The AICPA has published a new edition of its Audit and Accounting Guide, Preparation, Compilation, and Review Engagements. This edition of the guide has been revised by AICPA staff to include certain changes necessary due to the issuance of authoritative guidance since the guide was originally issued, and other revisions as deemed appropriate. Relevant guidance issued through September 1, 2023, has been considered in the development of this edition of the guide. However, this guide does not include all preparation, compilation, review, accounting, reporting, regulatory, and other requirements applicable to an entity or a particular engagement. This guide is intended to be used in conjunction with all applicable sources of relevant guidance. Relevant guidance that is issued and effective on or before September 1, 2023, is incorporated directly in the text of this guide. 

For more information, click here.

© 2023 CCH Incorporated and/or its affiliates. All rights reserved. Used with permission.

Release No. 34-98737: Reporting of Securities Loans 

Summary - RNSAs are required to publicly report information within 90 calendar days of the reporting date.

For more information, click here.

© 2023 CCH Incorporated and/or its affiliates. All rights reserved. Used with permission.

AICPA & CIMA’s Tax Section Odyssey Podcast Series

Summary - Keep your finger on the pulse of the dynamic and evolving tax landscape with insights from tax thought leaders in the AICPA Tax Section. The Tax Section Odyssey podcast includes a digest of tax developments, trending issues and practice management tips that you need to be aware of to elevate your professional.

To listen to the latest podcast, please visit here.