It's been a busy week for standard setters here and abroad with an exposure draft from the FASB on derivatives and revenue as well as new sustainability standards for private companies in Mexico. The PCAOB is talking to practitioners about GenAI in audits and financial reporting. And we share a podcast with the vice chair of the International Sustainability Standards Board previewing its upcoming work.

New sustainability standards for private companies in Mexico

Under new rules, private Mexican companies, including subsidiaries of foreign multinationals, that present their financial statements under Mexican Financial Reporting Standards will be required to include sustainability information in their financial statement footnotes beginning with filings for calendar year 2025 with early adoption permitted. 

We explain the new standards and next steps.

Building toward a brighter future: Transforming Workday’s ESG program

ESG reporting can feel overwhelming, but it doesn’t have to be. Learn how PwC helped Workday create a roadmap that prioritized company values and created the foundation for an evolving regulatory landscape — while also transforming their relationships with their customers. 

Register for PwC’s Q3 sustainability and accounting webcasts

This quarter, PwC is again offering several informative, CPE-eligible webcasts.

Q3 2024 Quarterly sustainability webcast (up to 1.5 CPE credits) – August 8 or 14

Join our sustainability specialists for the next quarterly discussion of the latest developments in sustainability accounting and reporting in the US and abroad.

Q3 2024 Quarterly accounting webcast (up to 1.5 CPE credits) – September 18, 24, or 26

Join our National Office specialists for a discussion of key accounting and reporting reminders as companies close out Q3 2024. 

Q3 2024 Energy, utilities and resources webcast (up to 1.5 CPE credits) – September 25

Join us for a webcast specific to energy, utilities and resources companies that builds on the content in our core quarterly accounting webcast.

For more CPE-eligible webcasts, visit our National Office Accounting and reporting webcasts page on Viewpoint.

FASB proposes amendments to derivatives and revenue scoping

The FASB proposed new accounting guidance that would create an exception for certain contracts from being accounted for as derivatives and clarify the accounting for share-based payments received from customers in revenue arrangements.

Feedback on the proposal is due by October 21.

PCAOB Spotlight on GenAI used in audits and financial reporting

The PCAOB staff issued Spotlight: Staff Update on Outreach Activities Related to the Integration of Generative Artificial Intelligence in Audits and Financial Reporting. The Spotlight provides key insights and observations related to the use of GenAI tools in audits and financial reporting based on practitioner outreach. As GenAI evolves, the PCAOB staff plans to continue its outreach efforts with these and other stakeholders and perform other research activities to better understand the effect of GenAI on planning and performing the audit as well as financial reporting.

IASB proposes narrow-scope amendments on translating financial information into hyperinflationary currencies

On July 25, the International Accounting Standards Board (IASB) published an exposure draft proposing narrow-scope amendments to IAS 21, The Effects of Changes in Foreign Exchange Rates, that are intended to address accounting issues that affect companies that translate financial information from a non-hyperinflationary currency to a hyperinflationary currency. Comments are due by November 22.

IPTF update – Monitoring inflation in certain countries

On July 23, the Center for Audit Quality SEC Regulations Committee and its International Practices Task Force (IPTF) released their latest bi-annual monitoring inflation document for discussion. While non-authoritative, it can be used to assist companies in determining which countries are considered or may become highly inflationary under US GAAP.