As we near year-end, it is helpful to revisit current events and trends happening in financial reporting. Understanding insights that impacted the financial reporting world may not only assist with closing out 2025, but it can also provide a potential road map for future strategic planning.
The recent webinar, “Quarterly Perspectives: Financial Reporting & Beyond / Q3 2025,” offered timely insights on artificial intelligence (AI) adoption in corporate environments, the growing relevance of stablecoins as digital assets in financial transactions, and updates on the Private Company Council (PCC) activities in accounting standards tailored for private entities. The session’s goal was to help organizations understand trends, assess their impact, and prepare for future changes in financial reporting and compliance.
Below is an overview of the key takeaways to consider for future reporting.
Corporate Uses of Artificial Intelligence (AI)
AI continues to transform the accounting and finance landscape, with rapid advancements in generative AI (genAI), machine learning, and agent-based systems. AI tools are being used for content creation, translation, research, coding, data analysis, and strategic ideation. It’s important for a company to know what it wants or needs to do and what AI tools are available to help achieve that objective.
Successful implementation requires careful evaluation of feasibility, e.g., risk, data, and operability; impact, e.g., financial or performance; and governance risks. Companies must assess data availability, infrastructure readiness, and employee training needs. A structured approach—identifying high-value use cases and helping ensure process transparency—is essential to avoid missteps. AI adoption is widespread across industries and company sizes, but challenges such as data quality and restrictions, architecture constraints, people and talent, internal governance and policy, and regulatory compliance must be addressed. Many companies are beginning to build an AI-fluent culture and start AI implementation early to avoid falling behind competitors. Learn more about how businesses can implement AI both effectively and responsibly in our FORsights™ article, “AI in Business: Aligning Best Practices.”
Stablecoins
Stablecoins, a type of cryptocurrency pegged to a reference asset like the U.S. dollar, are gaining traction as a more efficient payment method. Unlike volatile cryptocurrencies such as bitcoin, stablecoins offer price stability and are increasingly used for cross-border transactions.
The Guiding and Establishing National Innovation for U.S. Stablecoins Act (GENIUS Act), passed in July 2025, marks a significant regulatory milestone by establishing a framework for integrating stablecoins into the U.S. financial system. Some would say the U.S. regulatory environment for stablecoins has been trailing others, especially Europe. The Act’s full implementation is expected within 10 to 14 months, potentially accelerating adoption.
Financial institutions, payment service providers, and merchants are preparing to integrate stablecoin payments, which offer near-instantaneous settlement, a potential for reduced fees, and 24/7 operability, among other benefits. Major players like JPMorgan Chase, Citigroup, Visa, Mastercard, and SWIFT have either announced they will be or are already incorporating stablecoin capabilities into their systems. In addition, users may soon transact stablecoins without even realizing it, as the technology becomes embedded in traditional financial infrastructure.
FASB’s Private Company Council (PCC)
The PCC is the primary advisor to FASB on private company matters. Its primary roles include being an advisory body, proposing projects that may lead to accounting alternatives suited to private companies, and conducting outreach on behalf of FASB. The PCC also has a broader influence on standard setting, often shaping practical expedients and effective date differences even when formal private company alternatives are not adopted.
A key recent development is the issuance of Accounting Standards Update (ASU) 2025-05, Financial Instruments—Credit Losses (Topic 326): Measurement of Credit Losses for Accounts Receivable and Contract Assets, which stemmed from a PCC project. The final standard both introduces a practical expedient for all companies to assume that current conditions as of the balance sheet date do not change over the life of an asset and allows for a non-public business entity (essentially a private company) electing the practical expedient to also elect a policy to consider subsequent collections after the balance sheet date when estimating credit losses on accounts receivable and contract assets. Read more in our Q3 Financial Reporting Update.
Future PCC agenda topics and research projects—selected to focus on topics that are pervasive and feasible to address with potential high impact—include addressing criticisms of the complexity in evaluating debt modifications and extinguishments, potentially simplifying lease accounting, and considering subjective acceleration clauses in debt instruments.
How Forvis Mazars Can Help
Our skilled professionals at Forvis Mazars are ready to deliver independent and objective assurance services that can help provide your company the security and trust you need to make informed decisions. Our teams know how to align with your objectives, and their proactive approach includes candid and open communication to help address your financial reporting needs.
For more information, please reach out to a professional at Forvis Mazars and register for the next “Quarterly Perspectives: Financial Reporting & Beyond” webinar.