{"id":1613,"date":"2026-01-28T12:48:44","date_gmt":"2026-01-28T12:48:44","guid":{"rendered":"https:\/\/pierag.com\/?p=1613"},"modified":"2026-10-09T10:02:26","modified_gmt":"2026-10-09T10:02:26","slug":"standard-setters-updates-h2-2025","status":"publish","type":"post","link":"https:\/\/pierag.com\/US\/standard-setters-updates-h2-2025\/","title":{"rendered":"Standard Setters\u2019 Updates &#8211; H2 2025"},"content":{"rendered":"<p><span style=\"font-weight: 400;\">The second half of 2025 produced significant activity across all four major standard-setting bodies. FASB issued multiple Accounting Standards Updates covering credit losses, internal-use software, government grants, and derivatives. The SEC underwent a leadership transition and issued new guidance on crypto assets. The PCAOB postponed its firm quality control standard by one year. European regulators materially simplified sustainability reporting obligations under ESRS. This edition consolidates the most significant H2 2025 developments into one practical reference for finance teams, audit committees, and accounting professionals preparing for 2026.<\/span><\/p>\n<p><a href=\"https:\/\/pierag.com\/wp-content\/uploads\/2026\/08\/Standard-Setters-H2-2025-V4.pdf\"><span style=\"font-weight: 400;\">Download the H2 2025 Standard Setters Publication (PDF)<\/span><\/a><\/p>\n<h2>FASB: New ASUs on Credit Losses, Internal-Use Software, and Government Grants<\/h2>\n<p><span style=\"font-weight: 400;\">FASB issued multiple Accounting Standards Updates in H2 2025, with three particularly significant for FY2026 implementation planning.<\/span><\/p>\n<p><b>ASU 2025-05 (Credit Losses, July 2025)<\/b><span style=\"font-weight: 400;\"> provides an optional practical expedient under the CECL model, allowing entities to assume current macroeconomic conditions at the balance sheet date will not change over the remaining life of short-term accounts receivable and contract assets from ASC 606 transactions. Effective for periods beginning after December 15, 2025. [1]<\/span><\/p>\n<p><b>ASU 2025-06 (Internal-Use Software, September 2025)<\/b><span style=\"font-weight: 400;\"> modernises the capitalisation framework under Subtopic 350-40 by removing the project-stage model. Capitalisation begins when management has authorised and committed to the project, and completion is probable. Effective for annual periods beginning after December 15, 2027, with early adoption permitted. [2]<\/span><\/p>\n<p><b>ASU 2025-10 (Government Grants, December 2025)<\/b><span style=\"font-weight: 400;\"> establishes authoritative US GAAP guidance for government grants for the first time, replacing the prior practice of applying IAS 20 by analogy. It provides a consistent recognition, measurement, and presentation framework for asset-related and income-related grants. [3]<\/span><\/p>\n<p><span style=\"font-weight: 400;\">FASB also continued its simplification and consistency agenda across H2 2025, covering debt exchanges, environmental credit programmes, crypto asset transfers, equity method improvements, and cash flow statement refinements. Finance teams should consult the effective-date appendices in the full publication to identify which ASUs require action for December 31, 2025 and December 31, 2026, year-ends. Pierag&#8217;s Accounting Advisory practice assists organisations with new standard adoption and technical accounting implementation.<\/span><\/p>\n<h2>SEC: Leadership Transition, SAB 122, and Crypto Task Force<\/h2>\n<p><span style=\"font-weight: 400;\">Paul Atkins was sworn in as the 34th SEC Chair on 21 April 2025 following the resignation of Chair Gary Gensler in January 2025. [4] The SEC issued Staff Accounting Bulletin No. 122 on 30 January 2025, rescinding the prior SAB 121 guidance on crypto asset safeguarding obligations and directing entities to apply existing contingency accounting standards under ASC 450-20. [5] Finance teams with crypto balance sheet exposure should confirm their accounting and disclosure treatment reflects the updated SEC position.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">The SEC also established a Cyber and Emerging Technologies Unit focused on fraud committed using AI and machine learning, signalling increased scrutiny of AI-related disclosures and internal control design for companies deploying AI in financial reporting workflows.<\/span><\/p>\n<h2>PCAOB: QC 1000 Postponed to December 2026<\/h2>\n<p><span style=\"font-weight: 400;\">On 28 August 2025, the PCAOB postponed its firm quality control standard QC 1000 by one year, moving the effective date to December 15, 2026. [6] The postponement covers QC 1000 and all related standards, including AS 2901, AS 1215, AS 1220, AS 2101, and AS 2110. Existing interim standards remain in force until December 15, 2026. Audit committees should engage with external auditors to understand implementation readiness and timeline implications for FY2025 and FY2026 audits.<\/span><\/p>\n<h2>Sustainability Reporting: ESRS Simplification and ISSB Developments<\/h2>\n<p><span style=\"font-weight: 400;\">The European Commission issued revised European Sustainability Reporting Standards that substantially reduce mandatory data points and introduce a value chain cap restricting what large companies can require from supply chain partners with 1,000 or fewer employees. For multinational organisations and Indian companies with EU market exposure, this changes the CSRD compliance baseline for FY2027 filings onwards.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">The ISSB continued its work programme, including SASB Standards enhancement exposure drafts and progress on nature-related disclosure requirements.\u00a0<\/span><\/p>\n<h2>Frequently Asked Questions<\/h2>\n<h3>What are the most important FASB ASUs from H2 2025?<\/h3>\n<p><span style=\"font-weight: 400;\">ASU 2025-05 on credit losses, ASU 2025-06 on internal-use software, and ASU 2025-10 on government grants. Effective dates vary and are detailed in the full publication. [1][2][3]<\/span><\/p>\n<h3>What did the PCAOB QC 1000 postponement mean?<\/h3>\n<p><b><\/b><span style=\"font-weight: 400;\"> The effective date moved to December 15, 2026, giving audit firms additional time to implement risk-based quality control systems. Existing interim standards remain in force until that date. [6]<\/span><\/p>\n<h3>What changed at the SEC in H2 2025?<\/h3>\n<p><span style=\"font-weight: 400;\">Paul Atkins was sworn in as SEC Chair. SAB 122 rescinded SAB 121&#8217;s crypto safeguarding guidance. A Crypto Task Force was launched, and a new Cyber and Emerging Technologies Unit was established. [4][5]<\/span><\/p>\n<h3>How does ESRS simplification affect CSRD filers?<\/h3>\n<p><span style=\"font-weight: 400;\">Revised ESRS reduce mandatory data points and limit what large companies can require from smaller supply chain partners. Companies preparing for mandatory CSRD filings from FY2027 should reassess their disclosure scope.<\/span><\/p>\n<h2>References<\/h2>\n<p><b>[1]<\/b><span style=\"font-weight: 400;\"> SEC EDGAR. (2025). <\/span><i><span style=\"font-weight: 400;\">ASU 2025-05: Financial Instruments &#8211; Credit Losses (Topic 326)<\/span><\/i><span style=\"font-weight: 400;\"> [Registrant disclosure, 10-Q]. Retrieved from <\/span><a href=\"https:\/\/www.sec.gov\/Archives\/edgar\/data\/1069878\/000119312525264987\/R12.htm\"><span style=\"font-weight: 400;\">https:\/\/www.sec.gov\/Archives\/edgar\/data\/1069878\/000119312525264987\/R12.htm<\/span><\/a><\/p>\n<p><b>[2]<\/b><span style=\"font-weight: 400;\"> FASB. (2025, September). <\/span><i><span style=\"font-weight: 400;\">ASU 2025-06: Intangibles &#8211; Goodwill and Other &#8211; Internal-Use Software (Subtopic 350-40): Targeted Improvements<\/span><\/i><span style=\"font-weight: 400;\"> [Full text]. Retrieved from <\/span><a href=\"https:\/\/storage.fasb.org\/ASU%202025-06.pdf\"><span style=\"font-weight: 400;\">https:\/\/storage.fasb.org\/ASU%202025-06.pdf<\/span><\/a><\/p>\n<p><b>[3]<\/b><span style=\"font-weight: 400;\"> FASB. (2025, December). <\/span><i><span style=\"font-weight: 400;\">ASU 2025-10: Government Grants (ASC 832)<\/span><\/i><span style=\"font-weight: 400;\">. Summary retrieved from <\/span><a href=\"https:\/\/dart.deloitte.com\/USDART\/home\/publications\/deloitte\/heads-up\/2025\/asc-832-fasb-guidance-accounting-for-government-grants\"><span style=\"font-weight: 400;\">https:\/\/dart.deloitte.com\/USDART\/home\/publications\/deloitte\/heads-up\/2025\/asc-832-fasb-guidance-accounting-for-government-grants<\/span><\/a><\/p>\n<p><b>[4]<\/b><span style=\"font-weight: 400;\"> Armstrong Teasdale. (2025, May 2). <\/span><i><span style=\"font-weight: 400;\">New era at the SEC: Key priorities under Chair Paul Atkins<\/span><\/i><span style=\"font-weight: 400;\">. Retrieved from <\/span><a href=\"https:\/\/www.armstrongteasdale.com\/thought-leadership\/new-era-at-the-sec-key-priorities-under-chair-paul-atkins\/\"><span style=\"font-weight: 400;\">https:\/\/www.armstrongteasdale.com\/thought-leadership\/new-era-at-the-sec-key-priorities-under-chair-paul-atkins\/<\/span><\/a><\/p>\n<p><b>[5]<\/b><span style=\"font-weight: 400;\"> Securities and Exchange Commission. (2025, January 30). <\/span><i><span style=\"font-weight: 400;\">Staff Accounting Bulletin No. 122 rescinding SAB 121<\/span><\/i><span style=\"font-weight: 400;\">. Retrieved from <\/span><a href=\"https:\/\/www.sec.gov\/newsroom\/speeches-statements\/atkins-digital-finance-revolution-073125\"><span style=\"font-weight: 400;\">https:\/\/www.sec.gov\/newsroom\/speeches-statements\/atkins-digital-finance-revolution-073125<\/span><\/a><\/p>\n<p><b>[6]<\/b><span style=\"font-weight: 400;\"> PCAOB. (2025, August 28). <\/span><i><span style=\"font-weight: 400;\">PCAOB postpones effective date of QC 1000 and related standards to December 15, 2026<\/span><\/i><span style=\"font-weight: 400;\"> [Press release]. Retrieved from <\/span><a href=\"https:\/\/pcaobus.org\/news-events\/news-releases\/news-release-detail\/pcaob-postpones-effective-date-of-qc-1000-and-related-standards--rules--and-forms\"><span style=\"font-weight: 400;\">https:\/\/pcaobus.org\/news-events\/news-releases\/news-release-detail\/pcaob-postpones-effective-date-of-qc-1000-and-related-standards&#8211;rules&#8211;and-forms<\/span><\/a><\/p>\n","protected":false},"excerpt":{"rendered":"<p>15-20 Min Read<\/p>\n","protected":false},"author":1,"featured_media":1617,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[4,5],"tags":[],"class_list":["post-1613","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-insights","category-povs"],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v28.2 - https:\/\/yoast.com\/product\/yoast-seo-wordpress\/ -->\n<title>H2 2025 FASB ASUs, PCAOB and SEC Changes | Pierag<\/title>\n<meta name=\"description\" content=\"H2 2025 accounting update for US teams: new FASB ASUs on credit losses, software and grants, SEC leadership changes and PCAOB QC 1000 requirements.\" \/>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/pierag.com\/US\/standard-setters-updates-h2-2025\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"H2 2025 FASB ASUs, PCAOB and SEC Changes | Pierag\" \/>\n<meta property=\"og:description\" content=\"H2 2025 accounting update for US teams: new FASB ASUs on credit losses, software and grants, SEC leadership changes and PCAOB QC 1000 requirements.\" \/>\n<meta property=\"og:url\" content=\"https:\/\/pierag.com\/US\/standard-setters-updates-h2-2025\/\" \/>\n<meta property=\"og:site_name\" content=\"Pierag\" \/>\n<meta property=\"article:published_time\" content=\"2026-01-28T12:48:44+00:00\" \/>\n<meta property=\"article:modified_time\" content=\"2026-10-09T10:02:26+00:00\" \/>\n<meta property=\"og:image\" content=\"https:\/\/pierag.com\/US\/wp-content\/uploads\/2026\/01\/Website-Article-Banner_Header-7.png\" \/>\n\t<meta property=\"og:image:width\" content=\"1440\" \/>\n\t<meta property=\"og:image:height\" content=\"377\" \/>\n\t<meta property=\"og:image:type\" content=\"image\/png\" \/>\n<meta name=\"author\" content=\"Pierag_us_2026\" \/>\n<meta name=\"twitter:card\" content=\"summary_large_image\" \/>\n<meta name=\"twitter:label1\" content=\"Written by\" \/>\n\t<meta name=\"twitter:data1\" content=\"Pierag_us_2026\" \/>\n\t<meta name=\"twitter:label2\" content=\"Est. reading time\" \/>\n\t<meta name=\"twitter:data2\" content=\"5 minutes\" \/>\n<script type=\"application\/ld+json\" class=\"yoast-schema-graph\">{\"@context\":\"https:\\\/\\\/schema.org\",\"@graph\":[{\"@type\":\"Article\",\"@id\":\"https:\\\/\\\/pierag.com\\\/US\\\/standard-setters-updates-h2-2025\\\/#article\",\"isPartOf\":{\"@id\":\"https:\\\/\\\/pierag.com\\\/US\\\/standard-setters-updates-h2-2025\\\/\"},\"author\":{\"name\":\"Pierag_us_2026\",\"@id\":\"https:\\\/\\\/pierag.com\\\/US\\\/#\\\/schema\\\/person\\\/6ba55ddb3ff7b08ffad1c3290aec6028\"},\"headline\":\"Standard Setters\u2019 Updates &#8211; 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