Heads Up - Volume 32 - Issue 20 - Executive Summary

Sep 4, 2026

Heads Up (Volume 32, Issue 20) summarizes discussions from the 2025 AICPA & CIMA Conference on Current SEC and PCAOB Developments. Key themes include SEC and PCAOB priorities on disclosure rationalization, interim reporting, crypto assets, and capital markets transaction reporting requirements. It also covers emerging accounting and auditing issues, FASB agenda consultation, auditor independence reminders, PCAOB inspection trends, and the governance and explainability challenges introduced by AI in financial reporting.

LanguageEnglish

CategoryResearch & Report

FormatPDF

Pages21

Reading Time53 min

AccessFree to download

In This Issue

Executive Summary

Accounting and Financial Reporting

Accounting Standard Setting

SEC Reporting

Other ProfessionWide Matters and PCAOB Developments

Contacts

Appendix A—Titles of Standards and Other Literature

Appendix B—Abbreviations

Highlights

2025 AICPA & CIMA Conference on Current SEC and PCAOB Developments

Accounting and Financial Reporting

AI and Data Centers

Heads Up | Volume 32, Issue 20 December 12, 2025 In This Issue • Executive Summary • Accounting and Financial Reporting • Accounting Standard Setting • SEC Reporting • Other ProfessionWide Mattersand PCAOB Developments • Contacts • Appendix A—Titles of Standards and Other Literature • Appendix B—Abbreviations Highlights ofthe 2025 AICPA & CIMA Conference on Current SEC and PCAOB Developments Executive Summary At the annual AICPA & CIMA Conference on Current SEC and PCAOB Developments, held in Washington, D. C., key stakeholders convened to discuss developments, emerging issues, and trends in accounting, financial reporting, and auditing, as well as other related matters. During this year’s conference, several speakers, including SEC Chairman Paul Atkins and SEC Chief Accountant Kurt Hohl, addressed priorities, including rulemaking related to disclosure rationalization, interim reporting, and crypto assets. Other key topics discussed at this year’s conference included: • Emerging accounting and auditing issues—The staff in the Office of the Chief Accountant (OCA) commented on emerging accounting issues and the related audit considerations. Topics addressed during this discussion included recent consultationson digital assets (stablecoins) and the applicability of the normal purchases and normal sales (NPNS) derivatives scope exception to commodity forward sale contracts; the increase of private equity investments in audit firms; artificial intelligence (AI), including the accounting for certain transactions involving the construction and operation of data centers; and the valuation of loans made by private credit lenders. In addition, the staff provided reminders about auditor independence. • FASB agenda consultation and invitations to comment—FASB Chair Rich Jones, Technical Director Jackson Day, and Deputy Technical Directors Helen Debbeler and Rosemarie Sangiuolo provided an update on the FASB’s agenda consultation. They indicated that through feedback received on the invitation to comment, the Board has identified 72 items and thus far has added 3 of these to its technical agenda. The FASB further discussed certain ASUs that have been finalized in 2025 or are expected to be finalized in 2026. • Capital markets transactions—Staff members in the SEC’s Division of Corporation Finance (the “Division”) addressed the application of SEC reporting requirements to certain capital markets transactions, such as the determination of financial statements required for spin-offs, IPO transactions involving the transfer of a license (primarily in the life sciences industry), put-together transactions, and reorganizations under common control. Staff members also discussed the requirement for a target company to file a Form 15 to suspend its reporting obligations after a de-SPAC transaction is consummated. • SEC reporting considerations—Division staff members provided important updateson key reporting topics, including observations on segment reporting after adoption of ASU 2023-07 and best practices for disclosures related to non-GAAP measures. They also reminded conference attendees about financial statement presentation matters and shared their perspectives on emerging issues in MD&A, using tariffs as an example. • PCAOB inspection trends and state of audit quality—Acting PCAOB Chair George Botic discussed the value that the PCAOB provides to investors through its inspection program, its new and revised auditing standards, and the transparency that Form AP and critical audit matters have brought to the audit process. Mr. Botic also highlighted that 2025 inspection results signal a decrease in firms’ deficiency rates. The PCAOB staff panel emphasized the importance of sustaining audit quality through strong quality control systems and noted that private equity investment in accounting firms presents opportunities and risks that inspectors will focus on, including those related to auditor independen

FAQs

What does this issue of Heads Up cover?

It provides an overview of key SEC, PCAOB, and accounting developments discussed during the 2025 AICPA & CIMA Conference, including executive summary highlights and topic sections such as SEC reporting and audit quality.

Which major SEC and PCAOB priorities are highlighted?

Topics include rulemaking related to disclosure rationalization, interim reporting, coverage of crypto assets, and PCAOB inspection trends and audit quality, including matters related to auditor independence.

How does the issue address AI’s impact on financial reporting?

It emphasizes the importance of AI governance and identifies risks such as model explainability challenges and emerging fraud risks, while noting that audit firms’ adoption of AI will be a future inspector focus.

Sep 4, 2026

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