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Bridging the GAAP: July 2025

Centri’s Bridging the GAAP newsletter highlights this month’s news, developments and emerging issues in the accounting and financial reporting world. 

FASB Standard Setter Updates

Financial Accounting Standards Board

July 23, 2025 Meeting

The Board discussed feedback received on the proposed Accounting Standards Update, Codification Improvements, and began redeliberations. The Board also discussed feedback received on the proposed Accounting Standards Update, Environmental Credits and Environmental Credit Obligations (Topic 818), and begin redeliberations.

This meeting will be live streamed on the FASB website. To access the webcast, go to the Live Meeting Webcasts link on the Upcoming Meetings section of the FASB website.

IASB Standard Setter Updates

International Accounting Standards Board

IASB Requests Information for Post-Implementation Review of IFRS 16, Leases

The IASB published a Request for Information as part of its Post-implementation Review of IFRS 16, Leases to evaluate whether it is broadly working as intended for investors, companies, auditors, and regulators. Comments are due by October 15. 

IFRS Foundation Standard Setter Updates

International Financial Reporting Standards

IFRS Foundation Publishes Jurisdictional Profiles on Adoption of ISSB Standards

The IFRS Foundation published an initial set of 17 jurisdictional profiles to provide information on the adoption of the International Sustainability Standards Board (ISSB) standards. The profiles include information about each jurisdiction’s stated target for alignment with ISSB standards as well as the current status of its sustainability-related disclosure requirements. The Foundation also released 16 snapshots of regulatory approaches by jurisdictions that are not yet final. Additional profiles will be added as jurisdictions finalize their regulatory approaches.

ISSB Standard Setter Updates

International Sustainability Standards Board

ISSB Proposes Amendments to SASB Standards and Related Industry-Based Guidance

On July 3, the ISSB published two exposure drafts proposing amendments to the specific disclosure guidance on sustainability-related risks and opportunities for 77 industries in the Sustainability Accounting Standards Board (SASB) standards and amendments to the Industry-based Guidance on Implementing IFRS S2. The amendments are the result of a comprehensive review of nine priority SASB industry groups (all eight industries in the Extractives & Minerals Processing sector and the Processed Foods industry) and propose the alignment of certain metrics, such as water management and workforce health and safety, across 41 additional industries. Comments on both exposure drafts are due by November 30.

SEC Regulatory Updates

Securities & Exchange Commission

Kurt Hohl Appointed SEC Chief Accountant

The SEC announced that Kurt Hohl will become Chief Accountant at the SEC effective July 7. Mr. Hohl was previously a partner at a Big Four accounting firm and earlier in his career had served in the SEC’s Division of Corporation Finance.

Ryan Wolfe, the Acting Chief Accountant, will return to his role as Chief Accountant in the Division of Enforcement.

The SEC has also filled a number of other senior staff positions in the last week, including Directors for the Division of Trading and Markets and the Division of Investment Management.

SEC Staff Releases Statement on Crypto Asset Exchange-Traded Products

On July 1, the SEC’s Division of Corporation Finance (Corp Fin) released a statement to provide its views on the application of certain disclosure requirements to offerings and registrations of securities by issuers of crypto asset exchange-traded products (crypto asset ETPs). The statement provides examples of disclosures related to crypto asset ETPs that are required by Regulation S-K and Regulation S-X observed in recent filings as well as common issues noted during filing reviews. It emphasizes the need for tailored disclosures specific to the issuer’s facts and circumstances.

SEC Updates Financial Reporting Manual

On July 2, the SEC’s Division of Corp Fin published an update to the Financial Reporting Manual (FRM) that reflects staff views on matters relating to the 2020 amendments to Regulation S-X related to acquired and disposed businesses and real estate operations (S-X 3-05, S-X 3-14, S-X 8-04, and S-X 8-06) and pro forma financial information (S-X Article 11). 

SEC Filer Status Assessment

As a reminder, an SEC registrant is required to calculate its public float as of the last business day of its most recently completed second fiscal quarter as part of the annual assessment of its accelerated filer status. For calendar year-end companies, the public float calculation as of June 30, 2025 will determine accelerated filer status for the Form 10-K for the year ended December 31, 2025. SEC accelerated filer status (i.e., large accelerated filer, accelerated filer, non-accelerated filer) can impact a company’s SEC filing timelines as well as certain disclosure requirements (e.g., whether or not an auditor’s attestation is required for internal control over financial reporting (ICFR) under Sarbanes Oxley Act section 404(b)). 

For an emerging growth company (EGC), the mid-year determination of public float (for determination of filer status) provides an opportunity to evaluate its ongoing (or expected) compliance with other EGC qualifying criteria, such as revenue thresholds, debt issuance thresholds, and the period of time since the IPO. In addition, a registrant that becomes a large accelerated filer no longer qualifies as an EGC as of the end of the current fiscal year and thus is required to obtain an auditor’s attestation report relating to ICFR in its annual report for the current fiscal year. 

Other Regulatory Updates

European Commission Adopts Revisions Related to Taxonomy Regulation

On July 4, the European Commission adopted a delegated act that amends the Taxonomy Regulation delegated acts. The changes are part of the “Omnibus I” package of improvements intended to reduce the regulatory burden on entities in the European Union. The amendments will be subject to review by the European Parliament and Council for a period of four months, which can be extended to six months, and are not final until published in the Official Journal. Once published, the amendments apply as of January 1, 2026, although entities may elect not to apply them to years beginning in 2025.The scope of entities subject to the Taxonomy Regulation is part of a separate “content” proposal expected to be finalized later this year.

Rikki Williams

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