In October 2024, the FASB issued an exposure draft to make the accounting for internal-use software development costs more compatible with the agile nature of software development methods. It would eliminate the concept of project development stages and limit cost capitalization to when (1) management has authorized and committed to funding a project and (2) it is probable the product will be completed and the software will be used to perform its intended function. Comments are due by January 27, 2025.
Read about the proposal here.
In November 2024, the FASB issued an exposure draft to provide guidance on how business entities should recognize, measure and present government grants received. The proposal is modeled on the accounting under IAS 20 (government grants and government assistance), with targeted revisions to areas such as scope. Comments are due by March 31, 2025.
Read about the proposal here.
The FASB expects to issue an exposure draft on environmental credit programs before the end of this year. Credits within scope would be recognized as an asset (at cost) when it is probable that it will be used to settle an environmental credit obligation, sold or traded; a liability would be recognized for environmental credit obligations, generally arising from compliance programs. Costs to obtain other credits would be expensed when incurred.
Read about the project here.
In November 2024, the FASB issued an exposure draft to modernize the interim reporting requirements. Notably, the Board has compiled an extensive list of disclosures across the Codification that apply to interim reporting periods. The Board’s approach was to determine whether prior Boards that adopted each disclosure requirement intended that the requirement apply to interim periods.
Read about the proposal here.
