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ACCOUNTING AND SEC HEADLINES:

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Investment Companies – FASB Discusses Contractual Sale Restrictions

As reported in its “Summary of Decisions” publication, the FASB met on June 17, 2026, and continued its deliberations on the Investment Companies—Contractual Sale Restrictions project and made a number of decisions, including the following:

• A contractual sale restriction and the related equity security should be the same unit of account.
• Any final guidance would be required and not optional.
• Require that an investment company disclose the discount attributable to the contractual sale restriction in the notes to financial statements for both interim and annual reporting periods.
• No additional clarification would be provided to real estate investment entities that apply Topic 946, Financial Services—Investment Companies, by analogy.

Swaps – SEC, CFTC Seek Public Input on Data Reporting Frameworks for Security-Based Swap and Swap Markets

The SEC and the Commodity Futures Trading Commission (CFTC) issued a “joint request for public comment on potential opportunities to harmonize, modernize, and streamline data reporting requirements in their regulation of the security-based swap and swap markets, respectively.”

The request for comment is intended to assist the agencies in evaluating whether changes to the design, scope, and structure of security-based swap and swap data reporting requirements would lead to greater alignment between their respective reporting frameworks. The SEC and CFTC seek input to enhance market transparency, reduce unnecessary operational complexity, promote data quality, and improve regulatory oversight while preserving the distinct statutory mandates of each agency under the Dodd-Frank Act.

The joint request for comment seeks input on the following topics:

• Harmonization across frameworks.
• Transparency and data quality.
• Operational complexity.
• Standardized identifiers and reference data.
• Implementation considerations.

The SEC and CFTC encourage the public to provide input on the operational, technological, and policy implications of these topics identified in the agencies’ request for comment. The public comment period will remain open for 60 days following publication of the request for comment in the Federal Register.

Derivatives – SEC, CFTC Seek Public Comment to Further Clarify and Harmonize Derivatives Product Definitions

The SEC and the Commodity Futures Trading Commission (CFTC) issued a joint request for public comment on potential opportunities to further update, clarify, and harmonize certain derivatives product definitions and interpretive issues.

The request for comment is intended to support the SEC’ ongoing evaluation of whether current regulatory definitions, interpretations, and jurisdictional frameworks appropriately reflect evolving market structures, financial products, and trading practices.

The joint request for comment seeks input on topics including:

Definitions relating to swaps and security-based swaps, including the scope of certain exclusions from the swap definition.

• Treatment of mixed swaps.
• Treatment of novel or emerging products.
• Jurisdictional and interpretive questions.
• Potential areas in need of greater clarity regarding regulatory definitional lines.
• Potential areas for alternative compliance.

The SEC and CFTC encourage the public to provide input on these topics, as identified in the agencies’ request for comment. The public comment period will remain open for 60 days following publication of the request for comment in the Federal Register.

Checklists – New Editions of SEC Disclosure Checklists Published

We have updated the following SEC disclosure related checklists through June 30, 2026:

• Financial Statement Disclosures This checklist outlines the required SEC disclosures for financial statements included in 1934 and 1933 Act domestic filings that are incremental to U.S. GAAP. The checklist is organized by topic.
• Management‘s Discussion and Analysis This checklist outlines the required SEC disclosures for MD&A included in 1934 and 1933 domestic filings, including Forms 10-K and S-1.
• Incremental Certifications, Disclosures, and Reporting Mandated by Sarbanes-Oxley This checklist outlines the certification, disclosure and reporting requirements resulting from the SEC rules mandated by the Sarbanes-Oxley Act of 2002.
• SEC Form 10-Q checklist This checklist is for financial and nonfinancial information included in Form 10-Q and is organized by form item number.

We have updated these checklists to reference the recently issued SEC Final Rule, Holding Foreign Insiders Accountable Act Disclosure: Correction, which includes technical corrections to the original final rule.

Securities Act – SEC Staff Updates Compliance and Disclosure Interpretation

The staff in the SEC’s Division of Corporation Finance (Corp Fin) has updated its Compliance and Disclosure Interpretation (C&DI), Security Act Sections. Corp Fin updated this C&DI to add Question 142.01, which provides guidance on information that must be in a registration statement involving a business combination.

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AUDITING AND INTERNAL CONTROL HEADLINES:

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Public Entities – New Edition of Knowledge-Based Audits of Public Entities Published

We have published a new edition of Knowledge-Based Audits of Public Entities. The tools in this publication are designed to help the auditor efficiently and effectively perform financial statement audits and, when applicable, audits of internal control over financial reporting, of public entities in accordance with auditing standards promulgated by the PCAOB.

This new edition incorporates current authoritative guidance, including:

• AS 1206, Dividing Responsibility for the Audit with Another Accounting Firm (effective for audits of financial statements for fiscal years ending on or after December 15, 2024).
• AS 2310, The Auditor’s Use of Confirmation (effective for audits of financial statements for fiscal years ending on or after June 15, 2025.
• AS 1000, General Responsibilities of the Auditor in Conducting an Audit (effective for audits of financial statements for fiscal years beginning on or after December 15, 2024, except for the 14-day documentation completion date requirement in AS 1215. For registered public accounting firms that, during the calendar year ending December 31, 2024, issued audit reports for more than 100 issuers, the amendment relating to the 14-day documentation completion date takes effect for audits of financial statements for fiscal years beginning on or after December 15, 2024. For all other registered public accounting firms, the 14-day documentation completion requirement will take effect for audits of financial statements for fiscal years beginning on or after December 15, 2025).
• QC 1000, A Firm’s System of Quality Control (effective on December 15, 2026, with the initial evaluation of the QC system to be performed as of September 30, 2027, and initial reporting to the PCAOB by November 30, 2027).
• Amendments to AS 1105, Audit Evidence, AS 2301, The Auditor’s Responses to the Risks of Material Misstatement, and conforming amendments to AS 2501, Auditing Accounting Estimates, Including Fair Value Measurements (effective for audits of financial statements for fiscal years beginning on or after December 15, 2025

Employee Benefit Plans – New Edition of AICPA Best Practices in Presentation and Disclosure Published

The AICPA has published a new edition of its Employee Benefit Plans: Best Practices in Presentation and Disclosure. This publication provides illustrative disclosures for financial statements of employee benefit plans. It has been issued by the AICPA and is intended to provide practitioners with nonauthoritative practical guidance on such disclosures.

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