On March 6, the SEC voted (3-2) to adopt new rules to enhance and standardize public company climate-related disclosures. The new rules will require public companies to disclose:

Read our In brief for an overview of the final rules, including key changes from the March 2022 proposal.

For more insights, register for our March 12 CPE-eligible webcast featuring PwC sustainability specialists and our keynote speaker, former SEC Commissioner Elad Roisman.

Our podcast miniseries on financial statement presentation wraps up with a refresher on restricted cash – a focus area due to its impact on liquidity and the recent statement from the SEC Chief Accountant on the cash flow statement.

For more on the statement of cash flows, listen to our other recent podcast, 2023 Year-end toolkit: Conquering the statement of cash flows.

Q1 2024 Quarterly accounting webcast — March 13, March 19, or March 28

Join us for discussion of key accounting and reporting reminders as companies close out Q1 2024. Our specialists will share insights on new FASB guidance, Pillar Two and other income tax updates, SEC reporting developments, including the final climate-related disclosure rules, and more.

Register to earn up to 1.5 CPE credits.

Check out our National Office Accounting and reporting webcasts page on Viewpoint for the full library.

On March 6, the PCAOB staff hosted a virtual roundtable on the board’s proposal to address auditor responsibilities related to noncompliance with laws and regulations (NOCLAR). PCAOB Chief Auditor Barbara Vanich noted the additional input would be used to help the staff in making recommendations to the Board. Brian Croteau, PwC US Chief Auditor, participated in two panels and talked about how existing standards could be improved in response to the current environment and stakeholder feedback.

Panelists discussed alternative thresholds that would more clearly articulate auditor responsibilities. Panelist views varied about what auditor responsibilities should be relating to noncompliance including (1) the extent to which auditors should be expected to identify relevant laws and regulations that may not be central to the company’s operations, and (2) whether it is reasonable to expect auditors to prevent or detect potential noncompliance with such laws and regulations.

A panel focused on economic analysis noted insufficient clarity as to the objectives of the proposal and its intended scope as well as the expected benefits and costs – with a number of panelists focusing on auditor responsibilities related to fraud.

On March 6, the SEC adopted amendments to the disclosure requirements of Rule 605 of Regulation NMS for order executions in national market systems (NMS) stocks, which are stocks listed on a national securities exchange. The amendments expand the scope of entities subject to Rule 605 to include broker-dealers who introduce or carry 100,000 or more customer accounts, modify the information reported under the rule, and require a summary report of execution quality. The amendments become effective 60 days after publication of the adopting release in the Federal Register, with a compliance date of 18 months from the effective date.