Q2 2024 Quarterly Outlook

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KPMG reports on major accounting and financial reporting developments that could affect companies in the current period or near term. This quarter we feature recent SEC and FASB headlines, the latest on sustainability reporting, and PCAOB developments of interest to audit committees.

Applicability

All companies

For Q2 2024:

The FASB's project on disaggregation of income statement expenses is making steady progress, carrying with it the potential for a substantive impact on public company financial reporting. Companies should be prepared for the forthcoming changes and stay informed as the project nears its completion.
The SEC has stayed its new climate rule to allow time for the upcoming judicial review. Nevertheless, companies should continue their efforts toward sustainability reporting because many provisions of the SEC's rule align with other reporting regimes, such as California laws and international standards.
The PCAOB has issued two new standards on auditor responsibility and quality control, as well as a proposed standard that could potentially disrupt audit firms and engagements by mandating metric reporting at both levels. Given the potential downstream effects, it is important for management and audit committees to closely monitor these developments and actively engage in discussions with their auditors.