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Bridging the GAAP: June 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

June 18, 2025 Meeting

The Board discussed feedback received on the proposed Accounting Standards Update, Interim Reporting (Topic 270): Narrow-Scope Improvements. The Board affirmed its decision to add a reference in Topic 270 to direct U.S. Securities and Exchange (SEC) registrants to the appropriate form and content requirements, such as Regulation S-X Rules 210.10-01 and 210.8-03. Further, The Board affirmed the following decisions:

1. Including a list of interim disclosure requirements in Topic 270
2. The types of disclosures included in the list of interim disclosure requirements
3. The approach to event-driven disclosures.

The Board decided to allow an entity to apply the amendments on either a prospective basis or a retrospective basis.

The Board decided that the amendments will be effective for interim reporting periods within annual reporting periods beginning after December 15, 2027, for public business entities and for interim reporting periods within annual reporting periods beginning after December 15, 2028, for entities other than public business entities. The Board also decided to permit early adoption of the amendments for interim financial statements.

For more information, see the FASB’s Tentative Board Decisions.

Upcoming June 25, 2025 Meeting

The Board will discuss feedback received on the proposed Accounting Standards Update, Government Grants (Topic 832): Accounting for Government Grants by Business Entities, and begin redeliberations. If necessary, the Board will discuss minor issues on technical projects or administrative matters.

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.

IFRS Foundation

International Financial Reporting Standards

IFRS Foundation Publishes Educational Material About GHG Emissions Disclosure Requirements

On May 29, the IFRS Foundation published educational material about the requirements in IFRS S2 Climate-related Disclosures related to measurement and disclosure of greenhouse gas (GHG) emissions. The material does not add or otherwise change the requirements in IFRS S2.

SEC Regulatory Updates

Securities and Exchange Commission

SEC Releases Statement on Crypto Staking

On May 29, the SEC’s Division of Corporation Finance (Corp Fin) issued a statement with its views on certain activities related to proof-of-stake networks (referred to as “staking”), as part of an effort to provide greater clarity on the application of the federal securities laws to crypto assets. Corp Fin believes that a company performing “Protocol Staking Activities” in connection with specific types of “Protocol Staking” over “Covered Crypto Assets” (each as defined in the statement) do not involve the offer and sale of securities.

SEC Solicits Public Comments on the Definition of “Foreign Private Issuer”

On June 4, the SEC published a concept release soliciting public comment on the definition of “foreign private issuer” in advance of potential SEC rulemaking. A change in the definition would likely decrease the number of companies that qualify as foreign private issuers (FPIs), particularly those that have direct listings in the United States and are not traded on other exchanges (primarily entities incorporated in the Cayman Islands and headquartered in China). 

Approaches to update the existing FPI definition could include:

• Updating existing FPI eligibility criteria;
• Adding a foreign trading volume requirement;
• Adding a major foreign exchange listing requirement;
• Incorporating an SEC assessment of foreign regulation applicable to the FPI;
• Establishing new mutual recognition systems; and/or
• Adding an international cooperation arrangement requirement.

The comment period will be 90 days following publication in the Federal Register.

SEC Extends Form PF Amendments Compliance Date

On June 11, the SEC and US Commodity Futures Trading Commission (CFTC) approved a second extension of the compliance date for amendments to Form PF that were adopted on February 8, 2024, moving it from June 12, 2025 to October 1, 2025. 

Form PF is the confidential reporting form for certain SEC-registered investment advisers to private funds. SEC Chairman Atkins said he has directed staff to undertake a comprehensive review of Form PF.

Other Regulatory Updates

CARB Seeks Input on California’s Climate Disclosure Laws

On May 29, the California Air Resource Board (CARB) held an extensive workshop to advance the regulatory development of California’s climate disclosure laws referred to as “SB 253” and “SB 261” (from their Senate Bill numbers). The workshop opened with remarks from the sponsoring state senators, who affirmed that the laws’ statutory deadlines will not change. Specifically, companies within the scope of SB 253 will need to initially report their scope 1 and scope 2 greenhouse gas (GHG) emissions in 2026 on 2025 information and initially report scope 3 emissions in 2027 on 2026 information. Companies within the scope of SB 261 will need to post a climate-related financial risk report to their website by January 1, 2026. The CARB stated that the related regulations will be available by the end of 2025. The agency is continuing to solicit more feedback on certain elements of the scoping and reporting requirements.

For more information, see the CARB’s website.

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