Financial reporting continued to evolve significantly during the second quarter of 2026, with important developments from standard-setting bodies and regulators. This quarterly update summarizes selected accounting, regulatory, and governance developments to help financial reporting professionals stay informed about changes that could affect accounting policies, disclosure requirements, internal controls, audit oversight, and reporting processes.
What’s Inside the Q2 2026 Update
FASB Activity
The second quarter of 2026 marked a significant increase in FASB standard-setting activity. Highlights include:
- Accounting Standards Updates related to paid-in-kind dividends on equity-classified preferred stock and environmental credits and environmental credit obligations
- Exposure drafts addressing the discount rate applied in the measurement of benefit obligations in pension plans, targeted improvements to hedge accounting, and targeted improvements to fair value measurement of equity securities subject to contractual sale restrictions
- Emerging projects involving digital assets, debt classification, equity method accounting, private credit disclosures, and crypto assets
SEC & PCAOB Activity
This quarter included several significant regulatory developments affecting public company reporting and audit oversight. Highlights include:
- Proposed SEC rules related to semiannual reporting and filer status classifications
- PCAOB inspection modernization initiatives and stakeholder engagement activities
- The establishment of a PCAOB firm consultation process
AICPA Activity
The update highlights insights from AICPA Engage 2026, which primarily focused on the growing impact of artificial intelligence and automation on financial reporting.
Other Key Developments
Additional insights include:
- Financial reporting considerations related to tariff developments and potential recoveries
- Artificial intelligence governance and disclosure considerations
- Important reminders regarding upcoming accounting standards effective dates
How Forvis Mazars Can Help
Evolving accounting standards and regulatory developments continue to shape financial reporting requirements. Early planning and implementation can help organizations prepare for what’s ahead and navigate change with confidence.
Related Resource
Register for our Quarterly Perspectives webinar series for a high-level discussion of key accounting and regulatory developments from the quarter.