Q1 2025 Quarterly Outlook

For Q1 2025:

• The impacts of the new Administration on accounting and financial reporting are becoming increasingly evident. Recent appointment changes and departures at the SEC are indicative of the broader transformations underway, with similar changes anticipated at the PCAOB. Of note, the SEC rescinded Staff Accounting Bulletin (SAB) No. 121, which introduced requirements on banks and broker-dealers when accounting for the custody of crypto assets. Concurrently, certain standard-setting initiatives at the PCAOB have come to a halt, reflecting a transformative shift in regulatory priorities.
• On sustainability reporting, there has been a flurry of state-level climate reporting proposals. The European Commission has issued major proposals to reduce the burden of sustainability reporting, and the International Sustainability Standards Board is set to propose practical amendments to ease application.
• At the FASB, several feedback-seeking initiatives are underway, including three Invitations to Comment – covering broad agenda consultation, recognition of intangibles and financial key performance indicators – and several proposals remain open for public comment.
• Public companies are reminded of the accounting standards that become effective in 2025. Among these is a new income tax disclosure standard, applicable to annual reporting periods only. Early preparation and understanding of the new requirements will be crucial for smooth implementation.