The first half of 2026 produced significant accounting, regulatory, and sustainability reporting activity. FASB issued two new Accounting Standards Updates in Q2 and identified several standards now effective for 2026 reporting periods. The SEC proposed the most significant structural change to periodic reporting in approximately 75 years. The PCAOB transitioned to new leadership and confirmed the December 2026 effective date for QC 1000. The ISSB advanced its nature-related disclosure framework. This edition consolidates the most significant H1 2026 developments into one practical reference for finance teams, audit committees, and accounting professionals.
Download the H1 2026 Standard Setters Publication (PDF)
FASB: New ASUs and Standards Effective in 2026
No new ASUs were issued in Q1 2026. Q2 produced two updates directly relevant to finance and reporting teams.
ASU 2026-01 (Paid-in-Kind Dividends on Equity-Classified Preferred Stock, April 2026) provides authoritative guidance on how issuers should initially measure paid-in-kind (PIK) dividends on equity-classified preferred stock, requiring measurement based on the PIK dividend rate stated in the preferred stock agreement. Prior to this, US GAAP lacked explicit guidance, producing inconsistency in practice. Effective for annual periods beginning after December 15, 2026, with early adoption permitted. [1]
ASU 2026-02 (Environmental Credits and Environmental Credit Obligations, Topic 818, May 2026) establishes recognition, measurement, presentation, and disclosure requirements for entities that generate, purchase, or receive environmental credits, or have regulatory compliance obligations settleable with environmental credits. This is particularly relevant for organisations in carbon markets, renewable energy certificate regimes, and voluntary offset programmes. [2]
Standards effective for December 31, 2026 year-ends. Several existing ASUs reach their mandatory effective dates for calendar year-end public entities in 2026, covering income tax disclosures, credit loss measurement, induced debt conversions, and stock compensation. Finance teams should confirm implementation readiness for each. [3] Pierag’s Accounting Advisory practice assists organisations with new standard adoption and technical accounting implementation under US GAAP and IFRS. The H2 2025 Standard Setters Update covers earlier ASUs that feed into 2026 effective date planning.
SEC: Semiannual Reporting Proposal and Ongoing Reform
On 5 May 2026, the SEC proposed amendments allowing public companies to elect semiannual reporting on a new Form 10-S rather than filing three quarterly reports on Form 10-Q. [4] The proposal is described as the most significant structural change to US public company periodic reporting in approximately 75 years. Companies electing semiannual reporting would file one Form 10-S and one Form 10-K annually. The comment period closed on 6 July 2026, and a final rule has not yet been issued.
CFOs and audit committees should begin assessing whether a transition to semiannual reporting aligns with investor expectations, analyst coverage implications, and contractual reporting obligations. Key considerations include the impact on analyst coverage, comparability challenges in a mixed market of quarterly and semiannual filers, and review of debt covenants or credit agreements that reference quarterly reporting obligations. [5]
The SEC’s broader H1 2026 regulatory agenda also covers capital raising updates, foreign private issuer disclosures, private fund reporting, investment company developments, and market structure reform.
PCAOB: New Chair, Reduced Budget, and December 2026 Standards
In February 2026, the SEC appointed Demetrios (Jim) Logothetis as PCAOB Chair. [6] The SEC approved a reduced PCAOB budget for FY2026. QC 1000, the firm quality control standard postponed by one year in August 2025, remains on track for its December 15, 2026 effective date. AS 2901 and related standards take effect on the same date. Audit committees should engage with external auditors to confirm QC 1000 implementation readiness for H2 2026.
ISSB and Ongoing FASB Projects
The ISSB advanced its nature-related disclosure project in H1 2026, tentatively deciding to develop requirements in the form of an IFRS Practice Statement rather than a new standalone standard. [7] FASB’s active project pipeline includes crypto asset transfers, private credit disclosures, commodities, transferable tax credits, debt exchanges, digital assets, and hedge accounting. Finance teams should monitor these projects for exposure drafts and comment periods that may affect future reporting policies.
Frequently Asked Questions
What FASB standards were issued in H1 2026?
ASU 2026-01 on paid-in-kind dividends on equity-classified preferred stock, issued April 2026, and ASU 2026-02 on environmental credits and environmental credit obligations, issued May 2026. No ASUs were issued in Q1 2026. [1][2]
What is the SEC semiannual reporting proposal?
Proposed on 5 May 2026, it allows public companies to elect semiannual Form 10-S filings instead of three quarterly Form 10-Q filings. The comment period closed 6 July 2026, and a final rule has not been issued. [4]
When does PCAOB QC 1000 take effect?
December 15, 2026, following a one-year postponement. AS 2901 and related standards take effect on the same date. [6]
Where can I find the H2 2025 Standard Setters Update?
The H2 2025 edition is available in Pierag’s Insights hub.
References
[1] Eide Bailly LLP. (2026, July 20). 2026 Accounting Standards Updates Issued and Applicable Now. Retrieved from https://www.eidebailly.com/insights/alerts/2026/2026-accounting-standards-updates
[2] Securities and Exchange Commission. (2026, May 5). SEC Proposes Amendments to Permit Optional Semiannual Reporting by Public Companies [Press release]. Retrieved from https://www.sec.gov/newsroom/press-releases/2026-42-sec-proposes-amendments-permit-optional-semiannual-reporting-public-companies
[3] Sidley Austin LLP. (2026, June 8). SEC Proposes Optional Semiannual Reporting Regime: What Companies Should Consider Now. Retrieved from https://www.sidley.com/en/insights/newsupdates/2026/05/sec-proposes-optional-semiannual-reporting-regime-practical-considerations
[4] Riveron. (2026, June 12). Q1 2026 Accounting Advisory Guide: Navigating FASB Developments, SEC Reform, and Leadership Trends. Retrieved from https://riveron.com/q1-2026-accounting-advisory-guide/
[5] International Sustainability Standards Board. (2026, June). ISSB Update – June 2026. IFRS Foundation. Retrieved from https://www.ifrs.org/news-and-events/updates/issb/2026/issb-update-june-2026/
