Share

Bridging the GAAP: March 2026

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

Standard Setter Updates

Financial Accounting Standards Board (FASB)

FASB to Host Public Roundtable on Implementation of DISE Standard

On May 27, The FASB will host a public roundtable meeting on the implementation of the Accounting Standards Update No. 2024-03, Income Statement—Reporting Comprehensive Income—Expense Disaggregation Disclosures (Subtopic 220-40): Disaggregation of Income Statement Expenses (DISE Standard).

The purpose of the roundtable is to help the Board and staff gather additional feedback as they monitor implementation of the DISE Standard. The FASB is seeking participation from a broad cross-section of stakeholders across all industries. Topics will include preparers’ adoption efforts and how investors are preparing for the upcoming changes.

Those interested in participating in the roundtable should register online by April 15, 2026; participation will be determined to provide a balanced mix of industry and stakeholder perspectives. A list of all roundtable participants will be posted to the FASB website prior to the meeting.

Nonparticipating observers interested in attending the meeting in person should register online by April 30, 2026. (Seating is limited and available on a first-come, first-served basis.)

The roundtable 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.

SEC Accepts 2026 FASB Taxonomies

On March 17, the FASB announced that the U.S. Securities and Exchange Commission (SEC) has accepted the 2026 GAAP Financial Reporting Taxonomy (GRT) (including the 2026 GAAP Employee Benefit Plan Taxonomy (EBPT)) and the 2026 SEC Reporting Taxonomy (SRT). The FASB also finalized the 2026 DQC Rules Taxonomy (DQCRT) and the 2026 GAAP Meta Model Relationships Taxonomy (MMT), which together with the GRT, the SRT, and the EBPT are collectively referred to as the “FASB Taxonomies.”

The 2026 GRT contains updates for FASB accounting standards published in 2025 before December 1, 2025, and other recommended improvements. The 2026 SRT contains improvements for elements whose underlying recognition and measurement are not specified by generally accepted accounting principles (GAAP) but are commonly used by GAAP filers and for SEC schedules.

The DQCRT is uniquely structured from the typical design of XBRL taxonomies because it is narrowly focused on conveying the XBRL US Data Quality Committee’s (DQC) validation rules and contains a subset of the DQC rules, predominantly for regulator use. It is not intended to be used in SEC filers’ extension taxonomies.

The 2026 MMT includes relationships that assist preparers in identifying the proper elements, data users in the consumption of data, and in writing business rules that leverage the additional relationship information.

March 18, 2026 Meeting

The Board discussed recent feedback received on the proposed Accounting Standards Update, Debt—Modifications and Extinguishments (Subtopic 470-50) and Liabilities—Extinguishments of Liabilities (Subtopic 405-20): Accounting for Debt Exchanges. The Board decided to pause any further deliberations on the project until it evaluates the broader feedback received from the Private Company Council and the January 2025 Invitation to Comment, Agenda Consultation, on debt modifications and extinguishments.

The Board also considered feedback received on distinguishing liabilities from equity as part of the FASB’s 2025 Invitation to Comment, Agenda Consultation (2025 ITC), and decided to add a project to its technical agenda to address the indexation guidance in the Scope and Scope Exceptions Section in Subtopic 815-40, Derivatives and Hedging—Contracts in Entity’s Own Equity. The Board added this project to (a) make the guidance less complex to apply and understand and (b) increase consistent interpretation and application of the guidance.

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

Upcoming March 25, 2026 Meeting

At its March 25 meeting, the Board will discuss whether to add projects to its technical agenda on alternative funding arrangements, credit losses on receivables from contracts with customers, multi‑element software arrangements and other agenda consultation topics and to discuss Codification improvements.

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.

Emerging Issues Task Force (EITF)

March 12, 2026 Meeting

The EITF recommended that the FASB add a project to its technical agenda to clarify how an entity should consider recapture when accounting for mortgage servicing rights (MSRs). The EITF recommended that an MSR and recapture be treated as a single unit of account and that the fair value measurement of an MSR include the effects of recapture.

The Board will discuss this issue, including transition and whether early adoption would be permitted, at a public Board meeting to determine whether to add a project to the FASB’s technical agenda.

For more information, see the EITF’s Meeting Summary.

Committee of Sponsoring Organizations of the Treadway Commission

On February 23, the COSO released its publication, Achieving Effective Internal Control Over Generative AI (GenAI), that provides a COSO-aligned approach to managing the risks and opportunities introduced by rapidly advancing GenAI technologies. This non-authoritative publication contains narrative guidance and examples that adapt the five components and 17 principles from COSO’s 2013 Internal Control – Integrated Framework into GenAI-specific practices. It organizes GenAI use cases into eight types of capabilities and highlights how risks arising from each of the capabilities may impact financial reporting.

American Institute of Certified Public Accountants (AICPA)

On February 24, the AICPA issued a Proposed Statement on Standards for Attestation Engagements Common Concepts, Examination Engagements, Review Engagements, and Engagements to Report on Sustainability Information. It proposes revisions to the baseline attestation standards to address evolving practice as well as new subject matter-specific sections to address examination and review engagements on sustainability information that take into account the IAASB’s International Standards on Sustainability Assurance (ISSA) 5000 General Requirements for Sustainability Assurance Engagements. Comments are due by June 30.

SEC Regulatory Updates

SEC Issues Interpretation Clarifying Application of Federal Securities Laws to Certain Crypto Assets

On March 17, the SEC issued an interpretation of the definition of a “security” to clarify how the federal securities laws apply to certain crypto assets and transactions involving crypto assets. The interpretation provides specific guidance based on the classification of the crypto assets (as defined within the interpretation) into five categories depending on their characteristics, uses, and functions: (1) digital commodities; (2) digital collectibles; (3) digital tools; (4) stablecoins; and (5) digital securities.

The interpretation also addresses how a “non-security crypto asset” may become subject to, and how it may cease to be subject to, an investment contract. In addition, it includes guidance from the Commodity Futures Trading Commission (CFTC) that the CFTC will administer the Commodity Exchange Act consistent with the interpretation, and that certain “non-security crypto assets” could meet the definition of “commodity” under the Commodity Exchange Act.

In addition, the interpretation clarifies application of the federal securities laws to “protocol mining,” “protocol staking,” the “wrapping” of a “non-security crypto asset,” and “airdrops” (each as described in the interpretation). A summary of the interpretation is included in the fact sheet. 

Other Regulatory Updates

California Air Resources Board (CARB)

On February 26, the CARB held a public hearing during which the board approved the adoption of the proposed regulation related to California’s climate disclosure laws SB 253 and SB 261. The regulation establishes the definitions of terms used in scoping, the fee structure, and the SB 253 reporting deadline of August 10, 2026. The regulation approved by CARB is the same as that proposed for public comment in December 2025. Before the final regulation can take effect, CARB staff must submit the regulatory package to the California Office of Administrative Law for final review and approval.

During the hearing, CARB staff discussed their second rulemaking to address SB 253 requirements for 2027 and beyond, including reporting timelines, detailed requirements, and assurance expectations. To address concerns regarding the exemption of insurance companies from SB 253, the CARB issued a resolution directing CARB staff to coordinate with the California Department of Insurance (CDI) in order to evaluate and propose future regulatory requirements, as appropriate, to include insurance companies within the scope of SB 253 provided there is information not otherwise included in CDI’s climate risk disclosure survey.

Court of International Trade (CIT)

On March 4, the CIT ordered the Customs and Border Protection (CBP) to progress with the tariff refund process, noting that “all importers of record whose entries were subject to tariffs imposed under the International Emergency Economic Powers Act (IEEPA) are entitled to the benefit of” the Supreme Court’s ruling that such tariffs imposed are unlawful. The recent CIT order is another step in determining whether and how the IEEPA refund process will operate. The timing of recognition and measurement of any tariff refund receivable generally depends on the guidance released by the courts or government agencies. Entities should continue to monitor developments as they prepare periodic financial information and disclosures.

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