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Centri’s Bridging the GAAP: April 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

FASB Staff Educational Paper Clarifies Guidance on the Presentation and Disclosure of Retainage for Construction Contractors

On April 1, the Board announced the release of an FASB Staff Educational Paper that addresses questions about how to apply revenue recognition guidance about presentation and disclosures to construction contracts that contain retainage (or retention) provisions. The educational paper, which does not change or modify current generally accepted accounting principles (GAAP), was prompted by input from private company stakeholders, including the Private Company Council. The educational paper (a) explains the presentation and disclosure requirements in GAAP about retainage for construction contractors and (b) provides example voluntary disclosures of retainage that would provide more detailed information about contract asset and contract liability balances.

April 9, 2025 Meeting

The Board continued redeliberations and discussed feedback on the proposed Accounting Standards Update, Derivatives and Hedging (Topic 815) and Revenue from Contracts with Customers (Topic 606): Derivatives Scope Refinements and Scope Clarification for a Share-Based Payment from a Customer in a Revenue Contract. The Board directed staff to draft a final ASU regarding derivatives scope refinements and scope clarification for share-based payment from a customer in a revenue contract (ASC 815 and 606).

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

SEC Regulatory Updates

Securities and Exchange Commission

SEC Votes to End Defense of Climate Disclosure Rules

On March 27, the SEC voted to end its defense of the rules requiring disclosure of climate-related risks and greenhouse gas emissions. SEC Acting Chairman Mark T. Uyeda said, “The goal of today’s Commission action and notification to the court is to cease the Commission’s involvement in the defense of the costly and unnecessarily intrusive climate change disclosure rules.”

Paul Atkins Confirmed as SEC Chairman

On April 9, the Senate confirmed Paul Atkins as chairman of the SEC to serve for the remainder of former SEC Chairman Gary Gensler’s term which expires in June 2026. Mr. Atkins can serve another 18 months without Senate approval under SEC rules, but the Senate is expected to vote on a new five-year term. SEC Commissioner Mark Uyeda has been serving as Acting Chairman since January 2025.

Mr. Atkins has signaled that he will focus on the SEC’s mission to facilitate capital formation, emphasizing regulatory clarity, particularly in digital asset markets. At his confirmation hearing, Mr. Atkins emphasized the need for regulations that are “smart, effective, and appropriately tailored within the confines of the regulator’s statutory authority.” He also stated that he believes the goal of the SEC should be to facilitate efforts for “efficient, effective, and well-designed regulation,” analyze the effectiveness of regulations, and use “enforcement power to cure and rectify wayward actions.”

SEC Issues C&DIs on the Clawbacks Rule 

On April 11, the SEC staff issued new Compliance and Disclosure Interpretations (C&DIs) that clarify the application of clawback-related disclosure requirements.

SEC Extends Compliance Deadlines on Reporting Enhancements for Registered Investment Companies

On April 16, the SEC extended the compliance dates for amendments adopted in August 2024 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.

The amendments to Forms N-PORT and N-CEN now become effective on November 17, 2027. 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 billion will have until May 18, 2028 to comply with the Form N-PORT amendments.

Other Regulatory Updates

European Parliament Approves Postponing CSRD for Certain Entities

The European Parliament voted to approve a directive postponing the Corporate Sustainability Reporting Directive (CSRD) by two years for entities that were not already required to report on 2024 data. The Council of the European Union voted to approve the directive last week and is expected to issue a formal approval soon, after which the directive will take effect, and member states will need to transpose it into their local laws.

New York Proposes Mandatory GHG Reporting for Large Emitting Sectors

New York State’s Department of Environmental Conservation (DEC) released a draft regulation proposing a mandatory greenhouse gas (GHG) emissions reporting program. The regulation would require annual reporting of emissions and related data to the DEC by suppliers of liquid fuels, natural gas, coal, electric power and other commodities to end users in New York state as well as electricity generation, stationary combustion, landfills, waste to energy, natural gas compressor stations, and other infrastructure facility owners and operators if certain emission thresholds are met. Reporting under the proposal would begin in 2027 based on the prior year’s data and would include third-party verification requirements in the initial year of reporting for certain entities. Feedback is due by July 1.

“Stop-the-Clock” Directive Postpones Timing of CSRD and CSDDD for “Wave 2” and “Wave 3” Companies

“Stop-the-Clock” Directive Postpones Timing of CSRD and CSDDD for “Wave 2” and “Wave 3” Companies. This directive postpones the CSRD for two years for those entities not yet required to provide such disclosures and postpones the CSDDD by one year. Member States have until December 31, 2025 to transpose the directive into national law. The focus of the Council of the European Union and the European Parliament will now turn to the second Omnibus proposal, expected to affect the scope and content of the CSRD and content of the CSDDD.

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