Key accounting and financial reporting developments discussed in this issue include the following:

• Challenges associated with uncertainties in the current macroeconomic and geopolitical environment, including bank failures and downgrades; businesses struggling to raise capital; and companies announcing layoffs, broader restructuring plans, and impairments.
• The continuing global focus on sustainability requirements, including:
  • The enactment of two state senate bills and one state assembly bill in California, which collectively require certain public and private U.S. companies that perform specific business activities in California to provide disclosures about their greenhouse gas emissions, climate-related financial risks, voluntary carbon offsets, and certain climate-related emission claims.
  • The International Sustainability Standards Board’s issuance of its inaugural disclosure standards: IFRS S1, General Requirements for Disclosure of Sustainability-Related Financial Information, and IFRS S2, Climate-Related Disclosures.
• The FASB’s release of a number of Accounting Standards Updates, including those on enhancing the guidance on reportable segment disclosures, accounting for and disclosure of crypto assets, income tax disclosures, use of the proportional amortization method to account for investments in tax credit structures, joint venture formations, leases between entities under common control, and amendments to the FASB’s disclosure requirements to reflect SEC guidance.
• The SEC’s release of numerous final rules, including those on cybersecurity disclosures and money market funds.
• Key statements made by SEC Chief Accountant Paul Munter on (1) the statement of cash flows, (2) risk assessment, (3) the lead auditor’s responsibilities, and (4) high-quality standard setting.

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