Compliance
Last week, a lawsuit against the Public Company Accounting Oversight Board (PCAOB) was dismissed, following the termination of its investigation into an unnamed Texas accounting firm. This case reflects a series of recent challenges encountered by the audit regulator. The plaintiff's lawyers claimed victory, while the PCAOB downplayed the matter, stating that the dismissal did not address the merits of the case. The case involves challenges to the constitutionality of the PCAOB's investigation procedures, as well as external expectations that the agency may be weakened or marginalized under the Trump administration.
U.S. Securities and Exchange Commission (SEC) Chief Accountant Paul Munter announced he will retire on January 24, following Chairman Gary Gensler. Munter joined the SEC in 2019, became Acting Chief Accountant in 2021, and was officially appointed to the role in 2023. During his tenure, he issued 22 statements and speeches emphasizing transparency in financial reporting and warning about misleading audits of crypto companies and the decline of professionalism in the accounting industry.
Meta has confirmed the termination of several DEI initiatives, including its supplier diversity program, and the disbanding of its DEI team. This move coincides with the company's announcement last week to end its third-party fact-checking program, and is seen as part of a broad adjustment of corporate policies ahead of the incoming Trump administration.
The IRS has provided temporary relief for cryptocurrency holders and corporate finance leaders for the 2025 tax year, addressing the identification of digital assets sold. The notice, issued on New Year's Eve, offers two options for taxpayers to identify assets, but record-keeping remains mandatory. The relief stems from July regulations on broker reporting, with most brokers not yet ready to receive identification instructions.
Ohio Governor Mike DeWine signed HB 238 on January 8, eliminating the state's 150-college-credit requirement for Certified Public Accountant (CPA) licenses and offering two alternative pathways: one requiring a master's degree in accounting, one year of work experience, and passing the CPA exam; the other requiring a bachelor's degree in accounting, two years of work experience, and passing the exam. The law takes effect on January 1, 2026, making Ohio the first state to pass such legislation, aimed at addressing the accounting talent shortage.
Following a board meeting on December 18, the FASB issued a clarifying update on Monday, specifying the effective date of the DISE standard: all public companies, including non-calendar-year companies, must adopt it in the first annual reporting period beginning after December 15, 2026, and in interim or quarterly reporting periods beginning after December 15, 2027. This clarification does not alter the original compliance dates and is intended to eliminate misinterpretations caused by ambiguous wording.
The Financial Accounting Standards Board (FASB) issued an announcement on Friday inviting stakeholders to provide feedback on new projects it should undertake in the future, in order to update its agenda and determine which standards (the rules that form the basis of Generally Accepted Accounting Principles) require revision. The feedback deadline is June 30. Preliminary input has been received from approximately 200 stakeholders, with most indicating that no significant changes to GAAP are needed at this stage.
The U.S. Securities and Exchange Commission (SEC) approved new rules on January 2, granting the Public Company Accounting Oversight Board (PCAOB) greater authority to initiate deregistration procedures for accounting firms that have failed to submit annual reports and pay annual fees for two consecutive years. The new rules apply to reports and fees due this year, with deregistration potentially triggered as early as fall 2026. SEC Chairman Gary Gensler stated that the move aims to prevent inactive entities from continuing to promote themselves as PCAOB-registered. Currently, 80 firms are at risk due to failing to meet obligations in 2022 and 2023.
Community Health Network (CHN) disclosed in its financial report that it will pay former Chief Financial Officer and Chief Operating Officer Thomas Fischer $6.3 million as an "employment-related settlement," which is part of a total $145.7 million settlement agreement involving False Claims Act allegations. Previously, in December 2023, CHN agreed to pay the U.S. government $345 million to resolve investigations triggered by Fischer's whistleblowing. The latest settlement covers remaining claims not pursued by the government, and the company denies any wrongdoing.
The 'State of Sustainability Careers 2024' report by research institution Trellis (formerly GreenBiz) indicates that sustainability officers at large enterprises must balance innovation and compliance while addressing new regulations and reporting requirements. The survey shows that 74% of respondents reported increased team headcount, but budget growth slowed (54% in 2023 vs. 74% in 2022), and the proportion of CEOs with 'high engagement' dropped by 9 percentage points. The report describes the profession as being at a 'crossroads' and explores heightened regulation, the rise of the ESG controller role, and the phenomenon of 'greenhushing.'