Q3 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, provide an update on sustainability reporting, and address PCAOB developments of interest to audit committees.

Applicability

All companies

For Q3 2024:

The FASB is set to unveil seven proposals for public comment. The proposals cover a range of topics – many garnering broad interest. Among them, a new proposal that would introduce scope changes to ASC 815 (derivatives and hedging).
The SEC staff has shared additional views on applying ASC 280 (segments), including adopting ASU 2023-07 on segment reporting. In addition, the SEC’s ongoing focus on cybersecurity disclosure is evident. The SEC staff has issued another statement and new Compliance and Disclosure Interpretations (C&DIs) on the SEC’s new cybersecurity disclosure rules, emphasizing the importance of transparency in this critical area.
On sustainability, amendments to the California climate laws have progressed – signaling that companies should not delay moving forward with their preparation for adoption – and regulation and guidance from the European Union continues apace.
The PCAOB continues to be particularly active, with several developments garnering attention this quarter. Notably, the SEC has approved various PCAOB standard-setting and rulemaking actions, which the SEC chair has cited as ‘wins for investors'. In addition, a Q2 proposal concerning firm- and engagement-level metrics has elicited considerable feedback from audit firms and other key stakeholders.