The Financial Accounting Standards Board (FASB) did not issue any new Accounting Standard Updates (ASUs) in the second quarter of 2024, while the Government Accounting Standards Board (GASB) issued one new GASB Statement. The latest issue of the Rundown features a summary of this new standard. For summaries of standards issued in previous periods, view our previous rundowns here. In addition, we’ve got a comprehensive listing of all standards newly effective for calendar year-end December 31, 2024, broken down by public business entities, private entities and for June 30th and December 31st year-end governments.
Second Quarter 2024 Newly Issued Standards
Below is a brief description of the new standard, please read our article from June for a more detailed description of this new standard.
More than 20 years after issuing Statement No. 34, Basic Financial Statements—and Management’s Discussion and Analysis—for State and Local Governments, which launched a new financial reporting model that changed the landscape of governmental accounting and financial reporting in the early 2000s, the Governmental Accounting Standards Board (GASB) has undertaken efforts to improve key components in the financial reporting model, resulting in a new standard, GASB Statement No. 103, Financial Reporting Model Improvements (GASB 103).
GASB 103 focuses on improvements in the following areas:
- Management’s discussion and analysis (MD&A)
- Unusual or infrequent items
- Presentation of proprietary fund statement of revenues, expenses and changes in fund net position
- Major component unit information
- Budgetary comparison information
- Financial trends information in the statistical section
The requirements of GASB 103 are effective for fiscal years beginning after June 15, 2025.
List of Newly Effective Standards
Calendar Year-end Public Companies
The following ASUs are effective for public companies for calendar year 2024:
- ASU 2021-01: Reference Rate Reform: Scope
- ASU 2022-06: Reference Rate Reform: Deferral of Sunset Date
- ASU 2020-06*: Debt-Debt with Conversion and Other Options (Subtopic 470-20) and Derivatives and Hedging-Contracts in Entity’s Own Equity (Subtopic 815-40): Accounting for Convertible Instruments and Contracts in an Entity’s Own Equity
- ASU 2022-03: Fair Value Measurement of Equity Securities Subject to Contractual Sale Restrictions
- ASU 2022-04**: Disclosure of Supplier Finance Program Obligations
- ASU 2023-01: Common Control Leasing Arrangements
- ASU 2023-02: Accounting for Investments in Tax Credit Structures Using the Proportional Amortization Method
- ASU 2023-07: Segment Reporting (Topic 280): Improvements to Reportable Segment Disclosures
Calendar Year-end Private Companies
The following ASUs are effective for private companies for calendar year 2024:
- ASU 2021-01: Reference Rate Reform: Scope
- ASU 2022-06: Reference Rate Reform: Deferral of Sunset Date
- ASU 2020-06*: Debt-Debt with Conversion and Other Options (Subtopic 470-20) and Derivatives and Hedging-Contracts in Entity’s Own Equity (Subtopic 815-40): Accounting for Convertible Instruments and Contracts in an Entity’s Own Equity
- ASU 2021-08: Accounting for Contract Assets and Contract Liabilities from Contracts with Customers
- ASU 2022-01: Fair Value Hedging – Portfolio Layer Method
- ASU 2022-04**: Disclosure of Supplier Finance Program Obligations
- ASU 2023-01: Common Control Leasing Arrangements
Governmental Entities
As a reminder, the following GASB is effective for governmental entities for the June 30, 2024 year-end:
In addition to GASB statement No. 100, the following GASB is also effective for governmental entities for the upcoming December 31, 2024 year-end:
Standards Not Yet Effective***, But That You Should Consider Early Adopting
- ASU 2018-12: Accounting for Long-Duration Contracts
- ASU 2022-05: Transition for Sold Contracts
- ASU 2022-03: Fair Value Measurement of Equity Securities Subject to Contractual Sale Restrictions
- ASU 2023-02: Accounting for Investments in Tax Credit Structures Using the Proportional Amortization Method
- ASU 2023-05: Recognition and Initial Measurement of Joint Ventures
- ASU 2023-08: Accounting for and Disclosure of Crypto Assets
- ASU 2023-09: Improvement to Income Tax Disclosures
- ASU 2024-01: Compensation—Stock Compensation (Topic 718): Scope Application of Profits Interest and Similar Awards
*Effective for SRCs. Previously effective for all other public entities.
** Amendment on rollforward information is effective for fiscal years beginning after December 15, 2023.
***Not yet effective for private entities
