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Bridging the GAAP: November 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

October 29, 2025 Meeting

The Board added a project to its technical agenda to clarify whether certain digital assets may be classified as cash equivalents. Previously, the FASB chair added a project on digital assets to the Board’s research agenda at its August 13, 2025 Board meeting based on input received on the FASB’s 2025 Invitation to Comment, Agenda Consultation, including recommendations released in the report issued by the President’s Working Group on Digital Asset Markets.

November 12, 2025 Meeting

The Board added a project to its technical agenda to improve the operability of the accounting for equity method investments. The Board decided that the scope of the project would be to:

1. Address the accounting for a subset of equity method investments in partnerships and similar entities for which the investor is unable to significantly influence the operating and financial policies of the investee but is required to apply the equity method because of presumptive levels of influence

2. Clarify how equity method investors in non-real-estate entities should determine equity in earnings for investees with complex allocation structures.

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

November 19, 2025 Meeting

The Board added a project to its technical agenda related to the accounting for crypto asset transfers that will include:

1. Expanding the scope of Subtopic 350-60, Intangibles—Goodwill and Other—Crypto Assets, to address wrapped tokens and receipt tokens; and

2. Clarifying the derecognition guidance for crypto transfer arrangements to assess whether the control of a crypto asset has been transferred.

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

FASB Issues Guidance on Purchased Loans

The Board issued guidance that introduces a new model to account for the initial allowance for credit losses recognized upon acquisition on certain purchased loans (now defined as “purchased seasoned loans”). Under the new model, the initial allowance for credit losses recognized upon acquisition of certain loans that have not experienced a more-than-insignificant credit deterioration since origination and are deemed seasoned will be recorded as an adjustment to the amortized cost basis of the loan, as opposed to in earnings. The guidance is effective for all entities for periods beginning after December 15, 2026 and will be adopted prospectively. Early adoption is permitted.

FASB Issues Post-Implementation Review Report for Its Leases Standard

On November 20, the Board issued its report on Post-Implementation Review: Leases (842). The report discusses how the FASB staff conducted the Leases post-implementation review (PIR) process, which included outreach with over 1,600 individuals with diverse backgrounds, key implementation support provided throughout the adoption of the leases standard, and using what was learned during the PIR process to improve the leases standard and, more broadly, the standard-setting process

SEC Regulatory Updates

Securities and Exchange Commission

Guidance on SEC Operational Status During Shutdown

On November 12, President Trump signed an appropriations bill that restored funding for federal agencies, including the SEC, through January 30, 2026. The previously-furloughed SEC staff have resumed normal activities, including review of filings, review of pre-clearance matters, and advancing rulemaking activities. During the government shutdown, issuers filed over 900 registration statements. The Division of Corporate Finance (Corp Fin) released post-shutdown guidance noting that Corp Fin staff will process filings made while the Corp Fin’s operating status was closed in the order in which they were received. Similarly, Corp Fin staff will review draft submissions made while in the order in which they were received.

SEC Chair Paul Atkins Speech on “Project Crypto” Developments

In a recent speech, SEC Chair Paul Atkins signaled the next step toward an enhanced regulatory framework for crypto assets. He indicated that the SEC will consider establishing a token taxonomy for various categories of crypto assets that is anchored in the Howey test and would distinguish, for example, digital collectibles and digital tools from tokenized securities. Chair Atkins also said that he has requested that the SEC staff prepare recommendations to facilitate capital formation in this space in the coming months.

Other Regulatory Updates

IOSCO Issues Statement on Valuation Information in Financial Reporting

The International Organization of Securities Commissions (IOSCO) issued four publications including a statement on the importance of high-quality valuation information in financial reporting. IOSCO’s statement emphasizes the need for globally consistent, high-quality valuation practices to improve the reliability of financial reporting. It highlights areas for improvement in valuation inputs, assumptions, and disclosures, and it calls on issuers, audit committees, auditors, and valuation experts to strengthen governance, documentation, disclosures, and professional skepticism.

CARB Delays Reporting Deadline Under California Climate Disclosure Law

The California Air Resources Board (CARB) delayed the initial reporting deadline for Scope 1 and Scope 2 emissions and is no longer requiring limited assurance in the first year of reporting under the California climate disclosure law (SB 253). CARB also clarified certain definitions expected to be used in the regulations for SB 253 and the climate-related financial risk law (SB 261). Additionally, the US Court of Appeals for the Ninth Circuit issued an injunction, pending appeal, pausing the implementation of SB 261.

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