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.

FASB proposes amendments to ASC 848 and ASC 815

April 2022

The proposed ASU would defer to December 31, 2024 the sunset date of ASC 848, which provides relief for companies preparing for the discontinuation of interest rates such as LIBOR.

FASB proposes amendments to ASC 848 and ASC 815

SEC proposes new and amended rules for SPACs

April 11, 2022

The SEC has proposed rules that would impose new disclosures and other requirements on SPACs and shell companies throughout their life cycle, and when projections are disclosed.

SPACs - SEC proposes rules for SPACs (PDF)

SEC issues SAB 121 on digital asset custodial obligations

March 2022

Initial and subsequent measurement of the safeguarding obligation liability and related asset will be based on the fair value of the custodied digital assets.

SEC issues SAB 121 on digital asset custodial obligations

FASB amends TDR guidance and enhances disclosures

March 31, 2022

The FASB eliminates TDR recognition and measurement guidance for creditors and requires new disclosures.

New ASU affects receivable modification guidance and requires new disclosures (PDF)

FASB expands fair value hedge accounting

March 29, 2022

ASU 2022-01 establishes the portfolio-layer method, which expands an entity’s ability to achieve fair value hedge accounting for hedges of financial assets in a closed portfolio.

Fair value hedging - portfolio-layer method (PDF)

Insurance: SAPWG March 2022 call

March 2022

KPMG reports on statutory accounting actions and discussions of SAPWG on the March 2022 conference call.

SAPWG Call - March 2022 (PDF)

Accounting for investments in certain tax credit structures

March 2022

The EITF met on March 24, 2022 to deliberate Issue 21-A, Accounting for Investments in Tax Credit Structures Using the Proportional Amortization Method (PAM).

Accounting for investments in certain tax credit structures

SEC proposes cybersecurity rules

March 16, 2022

The proposed rules would increase the prominence of required disclosure of cybersecurity incidents in several corporate filings, including annual and quarterly filings and current reports.

Proposed enhancements to cybersecurity disclosures (PDF)

Deferred effective date for proposed EU sustainability rules

March 4, 2022

Targeted revisions to the EU’s expanded sustainability reporting proposals include deferring the effective date.

Proposed EU Directive would impact US companies (PDF)

 

For more information, please contact:

Michael Maekawa | +1 213-955-8331 | tmaekawa@kpmg.com