In this section, we provide brief updates from the previous quarter on regulatory developments in auditing and accounting that may impact Japanese companies in the United States. Further discussion of the issues can be found in KPMG's Department of Professional Practice's Defining Issues.
SEC staff questions quality of climate disclosures
February 2022
In September, an illustrative comment letter provided example questions that the SEC staff is posing to companies regarding climate-related disclosures. As the staff continues to probe disclosures and the first comment letters and responses become publicly available, we recommend using the example comment letter to help assess whether the appropriate disclosures are included in 2021 year-end filings.
SEC reopens pay vs performance disclosure proposal
January 28, 2022
In April 2015, the SEC proposed rules that would have required registrants to disclose the relationship between executive compensation and the financial performance of the registrant. The SEC is now revisiting the proposal and reopening the comment period.
Emerging markets risk disclosures expected
January 27, 2022
In December 2021, the SEC’s Division of Corporation Finance posted an illustrative letter (‘Dear Issuer letter’) with examples of comments issued to China-based companies requesting more specific and prominent disclosure of the risks – along with other information highlighted in the statements and guidance outlined below.
FASB proposes amendment on TDRs and vintage disclosures
January 4, 2022
For entities that have adopted the credit impairment standard, the proposed ASU would eliminate troubled debt restructuring recognition and measurement guidance for creditors, and require new disclosures.
FASB proposal: Enhancing transparency about supplier finance program obligations
December 21, 2021
A proposed ASU would require a buyer to disclose information about its use of supplier finance programs.
FASB proposal – Enhancing transparency about supplier finance program obligations (PDF)
FASB issues ASU – New Codification Topic: Government assistance
November 18, 2021
New annual disclosures for business entities receiving government assistance.
FASB issues ASU – New Codification Topic: Government assistance (PDF)