Bridging the GAAP: 2024 Year in Review
This special edition of Centri’s Bridging the GAAP newsletter highlights the year in review for the accounting and financial reporting world.
FASB Standard Setter Updates
Financial Accounting Standards Board
FASB Removes References to the Concepts Statements
The FASB issued an Accounting Standards Update (“ASU”) to remove references to the Conceptual Framework in the Codification. The Conceptual Framework establishes concepts that the Board considers in developing standards. The FASB noted that references to the Concepts Statements in the Codification could have implied that the Concepts Statements are authoritative. Also, some of the references removed were to Concepts Statements that are superseded.
Although the amendments are not intended to result in significant accounting change, the FASB recognized that changes to guidance may require transition.
The ASU (2024-02) is effective for public business entities for fiscal years beginning after December 15, 2024, and for all other entities for fiscal years beginning after December 15, 2025. Early application is permitted.
FASB Issues New Disaggregated Expense Disclosure Requirements (DISE)
On November 4, 2024, the FASB issued new guidance requiring additional disclosure of the nature of expenses included in the income statement in response to longstanding requests from investors for more information about an entity’s expenses. The new standard requires disclosures about specific types of expenses included in the expense captions presented on the face of the income statement as well as disclosures about selling expenses. ASU 2024-03, Disaggregation of Income Statement Expenses (DISE), applies to all public business entities (PBEs) and is effective for annual reporting periods beginning after December 15, 2026 and interim reporting periods beginning after December 15, 2027. The requirements will be applied prospectively with the option for retrospective application. Early adoption is permitted.
IASB Standard Setter Updates
International Accounting Standards Board
IASB Issues Exposure Draft to Amend IFRS 3 and IAS 36
The IASB issued an exposure draft, Business Combinations – Disclosures, Goodwill, and Impairment. The exposure draft is a package of proposals intended to enhance information provided to investors about acquisitions; it includes amendments to IFRS 3, Business Combinations, and related amendments to IAS 36, Impairment of Assets.
IASB Issues IFRS 18
The IASB issued IFRS 18, a new standard on presentation and disclosure in financial statements, which replaces IAS 1. The key concepts in IFRS 18 relate to:
- the structure of the statement of profit or loss;
- required disclosures in the financial statements for certain profit or loss performance measures that are reported outside an entity’s financial statements (that is, management-defined performance measures); and
- enhanced principles on aggregation and disaggregation that apply to the primary financial statements and footnotes.
IFRS 18 is effective for annual reporting periods beginning on or after January 1, 2027. Early application is permitted.
IASB Issues IFRS 19
On May 9, 2024, the IASB issued IFRS 19, Subsidiaries without Public Accountability: Disclosures, which will permit eligible entities to use IFRS Accounting Standards with reduced disclosure requirements. Applying IFRS 19 will reduce the costs of preparing subsidiaries’ financial statements while maintaining the usefulness of the information for users of their financial statements.
Narrow-scope Amendments to Classification and Measurement Requirements for Financial Instruments
The IASB issued amendments to the classification and measurement guidance in IFRS 9, Financial Instruments. The amendments are in response to feedback from a post-implementation review of IFRS 9 and are intended to clarify the requirements and address diversity in practice. The amendments are effective for annual reporting periods beginning on or after January 1, 2026.
SEC Regulatory Updates
Securities and Exchange Commission
New SEC SPAC Reporting Rules
The SEC adopted new and amended rules requiring new disclosures when a special purpose acquisition company (SPAC) conducts an initial public offering (IPO) and when it combines with a private operating company in what is known as a de-SPAC transaction, among other related changes. The adopted rules require a SPAC to disclose the role of its sponsor, conflicts of interest, dilution and whether its board determined that the de-SPAC transaction is advisable and in the best interests of the SPAC and its shareholders. The rules align financial statement requirements in de-SPAC transactions with those of traditional IPOs and require a redetermination of smaller reporting company status after a de-SPAC transaction. SPAC targets are deemed co-registrants, subjecting them to liability for untrue material statements or material omissions. The rules expand disclosures about future performance projections in SEC filings and amend the definition of a “blank check company” to make the safe harbor from liability for forward-looking statements unavailable to SPACs. The SEC also provided guidance, but did not amend existing rules, related to assessing when a SPAC may meet the definition of an investment company and on statutory underwriter status in connection with a de-SPAC transaction.
SEC Adopts Rules to Include Certain Significant Market Participants as “Dealers” or “Government Securities Dealers”
The SEC adopted two rules that require market participants who engage in certain dealer roles, in particular those who take on significant liquidity-providing roles in the markets, to register with the SEC, become members of a self-regulatory organization (SRO), and comply with federal securities laws and regulatory obligations.
The final rules further define the phrase “as a part of a regular business” in Sections 3(a)(5) and 3(a)(44) of the Securities Exchange Act of 1934 to identify certain activities that would cause persons engaging in such activities to be “dealers” or “government securities dealers” and be subject to the registration requirements of Sections 15 and 15C of the Act, respectively, in connection with certain liquidity-providing roles.
Under the final rules, any person that engages in activities as described in the rules is a “dealer” or “government securities dealer” and, absent an exception or exemption, required to: register with the Commission under Section 15(a) or Section 15C, as applicable; become a member of an SRO; and comply with federal securities laws and regulatory obligations and applicable SRO and Treasury rules and requirements.
SEC Adopts Amendments to Enhance Private Fund Reporting
The SEC adopted amendments to Form PF, the confidential reporting form for certain SEC-registered investment advisers to private funds, including those that also are registered with the Commodity Futures Trading Commission (CFTC) as commodity pool operators or commodity trading advisers. The amendments, which the CFTC concurrently adopted, are designed to enhance the ability of the Financial Stability Oversight Council (FSOC) to monitor and assess systemic risk and to bolster the SEC’s oversight of private fund advisers and the agency’s investor protection efforts. The SEC and CFTC also agreed to a memorandum of understanding related to the sharing of Form PF data.
SEC Adopts Amendments to Order Executions in National Market Systems Stocks
On March 6, 2024, the SEC adopted amendments to the disclosure requirements of Rule 605 of Regulation NMS for order executions in national market systems (NMS) stocks, which are stocks listed on a national securities exchange. The amendments expand the scope of entities subject to Rule 605 to include broker-dealers who introduce or carry 100,000 or more customer accounts, modify the information reported under the rule, and require a summary report of execution quality.
SEC Adopts Reporting Enhancements for Registered Investment Companies
On August 28, 2024, the SEC adopted amendments to Forms N-PORT and N-CEN that apply to certain registered investment companies. The amendments will require more frequent and timely reporting of monthly portfolio holdings and related information to the SEC and the public on Form N-PORT and require open-end funds to report information about service providers used to comply with liquidity risk management program requirements on Form N-CEN. These amendments were originally part of a rule proposal that included swing pricing, which was notably not part of this adoption.
The amendments to Forms N-PORT and N-CEN will become effective on November 17, 2025. Funds generally will be required to comply with the amendments for reports filed on or after that date, except that fund groups with net assets of less than $1.0 billion will have until May 18, 2026 to comply with the Form N-PORT amendments
Other Regulatory Updates
Final Rule on Non-Compete Clauses
In late April, the Federal Trade Commission approved a final rule that non-compete clauses are an unfair method of competition. Therefore, after its effective date (which will be 120 days after publication in the Federal Register), non-compete agreements with workers will no longer be enforceable and workers must be notified of this. Existing non-compete agreements with senior executives (as defined) will continue to be enforceable. However, new non-competes cannot be created, except as it relates to non-compete arrangements between buyers and sellers of a business. Companies with intangible assets related to existing employee non-compete agreements that do not meet the exceptions should consider the appropriate useful life for such assets.
However, on August 20, the April 2024 nationwide ban against noncompete agreements proposed by the FTC was struck down by a federal judge in the Northern District of Texas. U.S. District Judge Ada Brown said the FTC does not have the authority to ban practices it deems unfair methods of competition by adopting broad rules. This noncompete rule was expected to go into effect on September 4. FTC spokesperson Victoria Graham said the agency was disappointed with the ruling and is “seriously considering a potential appeal.”
Exposure Draft of Chinese Sustainability Disclosure Standards Released
On May 27, 2024, the Ministry of Finance of the People’s Republic of China issued an exposure draft for the Sustainability Disclosure Standard for Business Enterprises – Basic Standard. Sustainability Disclosure Standards for Business Enterprises for the People’s Republic of China (“CSDS”) will be made up of the basic standard, specific (thematic) standards and application guidance. Along with a standard on climate-related disclosures, a number of thematic standards in the plan cut across each of the streams within environment, social and governance topics (see chart below). A set of application guidance will interpret and provide guidance on both the application and industry-specific perspectives. Other supporting guidance may be issued as and when needed to support application.
China will issue the climate-related disclosure standard as well as all of its accompanying guidance by 2027. By 2030, the entire suite of CSDS and its accompanying guidance will have been issued. The adoption process will be phased in and cascade from: (1) listed companies to non-listed companies; (2) from large companies to small and medium-sized companies; (3) from qualitative disclosures to quantitative disclosures; and (4) from a voluntary basis to a mandatory basis. During the interim period as the suite of CSDS is being developed, other regulatory departments can issue their respective disclosure guidance as deemed necessary.
Hong Kong Proposes Sustainability Disclosure Standards
The Hong Kong Institute of Certified Public Accountants (HKICPA), the sustainability disclosure standard setter of Hong Kong, announced the publication of two new exposure drafts, HKFRS S1 and HKFRS S2, with proposed sustainability-related and climate-related reporting standards for companies. The standards are fully aligned with IFRS S1 and IFRS S2 issued by the International Sustainability Standards Board (ISSB). The proposed standards will initially prioritize listed entities and regulated financial institutions in Hong Kong and will be applicable for annual reporting periods beginning on or after August 1, 2025. Comments are due by October 27, 2024.
Nigeria and Egypt Deemed Highly Inflationary
The relevant government agencies in Egypt and Nigeria indicate that both have three-year cumulative inflation rates above 100% as of September 30, 2024. As a result, Nigeria and Egypt must both be considered highly inflationary economies as of October 1, 2024 for calendar year-end reporting entities that report on an interim basis. Although the determination of a highly inflationary economy under US GAAP and IFRS is similar, IAS 29, Financial Reporting in Hyperinflationary Economies, allows for qualitative considerations, which may result in a different determination. Under US GAAP, no such qualitative considerations should be considered.

Senior Director | CPA
Rikki is a Senior Director at Centri Business Consulting. He has more than 18 years of public and private accounting experience. View Rikki Williams's Full Bio
About Centri Business Consulting, LLC
Centri Business Consulting provides the highest quality advisory consulting services to its clients by being reliable and responsive to their needs. Centri provides companies with the expertise they need to meet their reporting demands. Centri specializes in financial reporting, internal controls, technical accounting research, valuation, mergers & acquisitions, and tax, CFO and HR advisory services for companies of various sizes and industries. From complex technical accounting transactions to monthly financial reporting, our professionals can offer any organization the specialized expertise and multilayered skillsets to ensure the project is completed timely and accurately.
Centri’s Capital Conference
The Centri Capital Conference is a one-day event held at Nasdaq on April 22, 2025. This platform will connect investors with executives from presenting companies in various emerging and rapid-growth sectors, including disruptive technology, life sciences, healthcare, and more. The conference will feature industry panels, dynamic speakers, and networking opportunities and will give growth-oriented private and public companies a place to showcase their innovations.
For more details, contact us at capitalconference@centriconsulting.com.
Eight Penn Center
1628 John F Kennedy Boulevard
Suite 500
Philadelphia, PA 19103
530 Seventh Avenue
Suite 2201
New York, NY 10018
4509 Creedmoor Rd
Suite 206
Raleigh, NC 27612
615 Channelside Drive
Suite 207
Tampa, FL 33602
1175 Peachtree St. NE
Suite 1000
Atlanta, GA 30361
50 Milk St.
18th Floor
Boston, MA 02109
1775 Tysons Blvd
Suite 4131
McLean, VA 22102
One Tabor Center
1200 17th St.
Floor 26
Denver, CO 80202
1-855-CENTRI1
virtual@CentriConsulting.com