Q1 2026 Quarterly Outlook

In Q1 2026:

• The quarter reflects a notable divergence between geopolitical volatility and relative stability in standard setting. Globally, geopolitical developments continue to command attention, prompting companies to monitor for potential implications. Domestically, the US Supreme Court’s ruling overturning the IEEPA-based tariffs provides needed legal clarity while leaving open important questions about potential refund claims for companies that previously paid these tariffs.
• In contrast, the rulemaking and standard setting environment remained comparatively quiet.
• The SEC has previewed its near-term priorities, signaling that additional regulatory activity may follow in the coming months.
• At the FASB, only two accounting standards became effective for calendar year-end public companies in 2026, providing preparers with a short period of relative quiet before more substantive requirements – such as the forthcoming disaggregation of income statement expenses standard – take effect in 2027. This measured pace aligns with the Board’s current focus on agenda recalibration and reshaping standard-setting priorities.
• Sustainability reporting advanced incrementally, with key regulatory developments emerging in California and New York, narrowing of scopes in the EU, continued work by the International Sustainability Standards Board (ISSB) on nature related disclosures, and updated GHG Protocol guidance. These developments build on the prior year’s trajectory toward more coordinated reporting frameworks.