Financial reporting continued to evolve during the third quarter of 2026, with new guidance, proposed accounting changes, regulatory developments, and emerging reporting considerations. This quarterly update summarizes selected developments from standard-setting bodies through September 30, 2026 to help financial reporting professionals stay informed about changes that may affect accounting and disclosure practices.
What’s Inside the Q3 2026 Update
FASB Activity
The quarter included newly issued guidance and a growing pipeline of proposed accounting changes. Highlights include:
- Accounting Standards Update (ASU) 2026-03 addressing fair value measurement for certain investment companies holding equity securities subject to contractual sale restrictions
- Exposure drafts related to residential mortgage servicing rights, cash equivalents and certain digital assets, and targeted Codification improvements
- Projects expected to result in forthcoming proposals addressing debt classification, equity method accounting, commodities, crypto assets, retail electricity contracts, and other topics
- New projects involving goodwill impairment, contractual sale restrictions, and accounting for changes in debt
SEC & PCAOB Activity
Regulatory activity reflected a continued focus on capital formation, investor protection, financial reporting oversight, audit quality, and emerging technologies. Highlights include:
- SEC regulatory priorities and new enforcement initiatives focused on retail and financial reporting fraud and accounting and auditing misconduct
- SEC proposals affecting shareholder proposals, proxy solicitation requirements, and crypto assets
- SEC considerations related to fair value measurement and disclosures for private assets
- PCAOB strategic planning, standard-setting and research priorities, and QC 1000 implementation updates
Other Key Developments
Additional insights include:
- Updates on the current status of International Emergency Economic Powers Act (IEEPA) tariff refunds and related developments
- Accounting and financial reporting considerations related to potential tariff recoveries
- Recognition, measurement, presentation, and disclosure considerations addressed in American Institute of CPAs (AICPA) guidance for mandated refunds of IEEPA tariffs
- Emerging financial reporting risks associated with the use of AI
- The importance of appropriate research, professional judgment, internal controls, documentation, and validation of AI-generated information
Important Reminders
The update includes reminders related to the implementation of FASB’s Disaggregation of Income Statement Expenses (DISE) standard, along with visual references to effective dates for ASUs affecting public business entities, private companies, and nonprofit organizations.
How Forvis Mazars Can Help
Accounting standards, regulatory priorities, and emerging technologies continue to shape financial reporting requirements. Early planning can help organizations evaluate potential impacts, prepare for upcoming effective dates, and strengthen the processes and controls supporting financial reporting. If you have any questions or need assistance, please contact us.
Related Resources
Explore the Quarterly Perspectives webinar series for high-level discussions of key accounting and regulatory developments.