Hot Topic | January 2024

Insight

Hot Topic: SAB 74 reminders

Disclosures required about yet-to-be adopted ASUs

This Hot Topic highlights important reminders of Staff Accounting Bulletin (SAB) 74 disclosures for ASUs issued but not yet adopted as public companies prepare their year-end financial statements.

Applicability

  • Public companies subject to the Securities Exchange Act of 1934

Relevant dates

  • Effective immediately

Key impacts

  • SAB 74 (Topic 11.M) requires disclosure by public companies of the potential effects of accounting standards that have been issued but not adopted, unless those effects are not expected to be material.
  • The SEC staff has stated that public companies should consider disclosing both qualitative and quantitative information and should indicate their progress towards implementation.

Report contents

  • Disclosures required by SAB 74 (Topic 11.M)
  • SEC staff expectations
  • SAB 74 reminders for upcoming ASUs to be adopted
  • Internal control over financial reporting
  • Audit committee responsibilities

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