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Bridging the GAAP: September 2024

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

September 18, 2024 Meeting

The Board discussed various Codification Improvement issues and made the following decisions. The Board directed the staff to draft a proposed Accounting Standards Update for vote by written ballot. The Board also decided on a 90-day comment period for the proposed Update.

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

SEC Regulatory Updates

Security and Exchange Commission

SEC Adopts Reporting Enhancements for Registered Investment Companies 

On August 28, 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.

FTC Regulatory Update

Federal Trade Commission

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.”

Other Regulatory Matters

California State Legislature

The California State Legislature approved amendments to the state’s climate disclosure laws that apply to companies “doing business” in California. The governor has until September 30 to sign or veto these amendments. The proposed amendments are largely administrative in nature, although one amendment may make the required reporting of greenhouse gas (GHG) emissions easier for subsidiaries with parents that report GHG emissions. Further, although the governor of California had proposed a two-year extension of the timing for certain disclosures, no extension of the implementation dates was included in the final amendments.

Rikki Williams

Senior Director | CPA

Rikki is a Senior Director at Centri Business Consulting. He has more than 16 years of public and private accounting experience. View Rikki Williams's Full Bio