Checklist – New Edition of Summary Checklist of Recent Authoritative U.S. Accounting Standards Published

We have published a new edition of the Summary Checklist of Recent Authoritative U.S. Accounting Standards. This new edition reflects the issuance of Accounting Standards Update (ASU) No. 2025-01, Income Statement—Reporting Comprehensive Income—Expense Disaggregation Disclosures (Subtopic 220-40): Clarifying the Effective Date. This ASU amends the effective date of ASU 2024-03 to clarify that all public business entities are required to adopt the guidance in annual reporting periods beginning after December 15, 2026, and interim periods within annual reporting periods beginning after December 15, 2027. Early adoption of Update 2024-03 is permitted.

Inflation – New Edition of Inflation Rates for Judging Whether an Economy Is Highly Inflationary Memo Published

We have published a new edition of our Interpretation, Inflation Rates for Judging Whether an Economy Is Highly Inflationary – December 31, 2024. This new edition has been issued and reflects the latest available inflation rate information.

The following change was made to the classification of countries under this Interpretation from the previous Interpretation dated September 30, 2024:

• Nigeria has been moved to the list of countries that have highly inflationary economies from the list of countries that may have highly inflationary economies.
• Lao, the People’s Democratic Republic has been moved to the list of countries that have highly inflationary economies from the list of countries that may have highly inflationary economies.

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AUDITING AND INTERNAL CONTROLS HEADLINES

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Not-for-Profit Entities – New Edition of Knowledge-Based Audits of Not-for-Profit Entities Published

We have published a new edition of Knowledge-Based Audits TM of Not-for-Profit Entities. This publication is designed to help the auditor efficiently and effectively perform financial statement audits and, when applicable, audits of internal control over financial reporting, of not-for-profit entities in accordance with auditing standards generally accepted in the United States of America (U.S. GAAS) and generally accepted government auditing standards (GAGAS).

This new edition incorporates current authoritative guidance including:

• SAS No. 146, Quality Management for an Engagement Conducted in Accordance with Generally Accepted Auditing Standards (effective for periods beginning on or after December 15, 2025);
• SAS No. 149, Special Considerations—Audits of Group Financial Statements (Including the Work of Component Auditors and Audits of Referred-to Auditors) (effective for periods ending on or after December 15, 2026);
• SQMS No. 1, A Firm's System of Quality Management (effective December 15, 2025);
• SQMS No. 2, Engagement Quality Reviews (effective December 15, 2025); and
• SQMS No. 3, Amendments to QM Sections 10, A Firm’s System of Quality Management, and 20, Engagement Quality Reviews (effective December 15, 2025).