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ACCOUNTING AND SEC HEADLINES:

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Financial Instruments – New Edition of Interpretations Published

We have updated the following publications through October 31, 2025:

• Interpretations about Fair Value of Financial Instruments Disclosures.
• Interpretations of Topic 820, Fair Value Measurement.
• Measurement, Disclosure and the Fair Value Option.

Equity Method Investments – New Edition of Interpretations Published

We have updated the following publications through October 31, 2025:

• Accounting by the Investor and the Investee at the Formation of a New Entity.
• Accounting for Suspended Equity Losses on Equity Method Investments.
• Equity Method of Accounting vs. Fair Value or Cost Minus Impairment.
• Equity Method Impairment When Investee's Balance Sheet Date Differs.
• Gain Recognition on Exchange of an Equity Method Investment for an Investment That Does Not Qualify for the Equity Method.

Crypto Assets – FASB Discusses Accounting for Transfers of Crypto Assets

As reported in its “Summary of Decisions” publication, the FASB met on November 19, 2025, and added a project to its technical agenda related to the accounting for crypto asset transfers that will include:

• Expanding the scope of Subtopic 350-60, Intangibles—Goodwill and Other—Crypto Assets, to address wrapped tokens and receipt tokens.
• Clarifying the derecognition guidance for crypto transfer arrangements to assess whether the control of a crypto asset has been transferred.

Paid-in-Stock Dividends – New Edition of GAAP Update Service Published

We have published a new edition of the GAAP Update Service, Paid-in-Kind Dividends on Preferred Stock (Proposal). This new edition discusses the FASB’s proposal on paid-in-kind dividends on preferred stock. This recent proposal addresses a narrow question on how to measure dividends on preferred stock that are paid-in-kind.

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AUDITING AND INTERNAL CONTROL HEADLINES:

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State and Local Governments – New Edition of AICPA Audit and Accounting Guide Published

The AICPA has published a new edition of its Audit and Accounting Guide, State and Local Governments. This AICPA guide has been developed by the AICPA State and Local Government Audit Guide

Revision Task Force (task force) to assist practitioners in performing and reporting on their audit engagements and to assist management in the preparation of their financial statements in conformity with U.S. generally accepted accounting principles (GAAP).

This edition also includes significant revisions related to:

• Examples of assertions the auditor may determine to be relevant assertions.
• Examples of sources of potential misstatement at the assertion level.
• Auditing leases, subscription-based IT arrangements, public-private and public-public partnerships, and availability payment arrangements.
• AU-C section 315 auditing guidance adapted for governmental entities.
• Examples of inherent risk factors in the governmental environment.
• An example of an investment type having a higher valuation risk.
• Auditing alternative investments.

Brokers and Dealers – New Edition of AICPA Audit and Accounting Guide Published

The AICPA has published a new edition of its Audit and Accounting Guide, Brokers and Dealers in Securities. This AICPA guide has been developed by the AICPA Stockbrokerage and Investment Banking Expert Panel to assist management in the preparation of their financial statements in conformity with U.S. generally accepted accounting principles (GAAP).

This new edition includes updated discussion of several topics, including the following:

• Digital assets, including recent SEC staff releases and Staff Accounting Bulletin No. 122.
• Segment reporting, including interpretative guidance approved by FinREC, on the application of FASB Accounting Standards Update (ASU) No. 2023-07, Segment Reporting (Topic 280): Improvements to Reportable Segment Disclosures, by broker-dealers.
• Income tax disclosures, including conforming changes for ASU No. 2023-09, Income Taxes (Topic 740): Improvements to Income Tax Disclosures.
• Recently issued SEC rules related to broker-dealer reserve requirements, electronic filing, FOCUS reports, and covered clearing agencies for U.S. Treasury securities.
• Other recent SEC releases and FINRA rule amendment.

Construction Contractors – New Edition of AICPA Audit and Accounting Guide Published

The AICPA has published a new edition of its Audit and Accounting Guide, Construction Contractors. This AICPA guide has been developed by the AICPA Construction Contractors Guide

Committee to assist practitioners in performing and reporting on their audit engagements and to assist management in the preparation of their financial statements in accordance with U.S. generally accepted accounting principles (GAAP).

In addition to the latest guidance on leases and credit losses, this edition has been updated for several other pronouncements, including but not limited to the following:

• Statement on Auditing Standards (SAS) No. 142, Audit Evidence.
• SAS No. 143, Auditing Accounting Estimates and Related Disclosures.
• SAS No. 145, Understanding the Entity and Its Environment and Assessing the Risks of Material Misstatement.
• SAS No. 146, Quality Management for an Engagement Conducted in Accordance With Generally Accepted Auditing Standards.
• Statement on Quality Management Standards No. 1, A Firm’s System of Quality Management.

Confirmation – New Edition of GAAS Update Service Published

We have published a new edition of the GAAS Update Service, A Refresher on PCAOB AS 2310 (Revised), “The Auditor’s Use of Confirmation.” This new edition discusses the PCAOB’s new auditing standard governing the auditor’s use of confirmation.

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GOVERNMENT HEADLINES:

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Reconciling Cash – New Edition of Governmental GAAP Update Service Published

We have published a new edition of the Governmental GAAP Update Service, Back To Basics Series – Reconciling Cash. This new edition discusses the fundamental duty to reconcile cash.

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