Accounting & Auditing Conference - Virtual-1 - Nach

1 - Nach - Accounting-Update

Pdf Summary

Ralph Nach’s session for the ICPAS 2026 Virtual Accounting & Auditing Conference reviews new and upcoming FASB standards, with emphasis on implementation planning, client advice, and opportunities for early adoption.

The central topic is <strong>ASU 2025-06, Targeted Improvements to the Accounting for Internal-Use Software</strong>, effective for annual periods beginning after December 15, 2027, including interim periods within those years. Early adoption is permitted. The update replaces the former three-stage capitalization model—which was difficult to apply to modern, iterative development—with two required conditions: management must authorize and commit to funding the project, and it must be probable the project will be completed and used as intended.

Capitalization is not appropriate while significant development uncertainty remains, such as unresolved technological challenges or substantially changing performance requirements. Eligible cost categories largely remain unchanged. The amendments also bring website development costs into the same framework and align software disclosures with the property, plant, and equipment model in ASC 360-10. The presentation highlights audit considerations, including obtaining evidence of project approval, assessing completion judgments, evaluating impairment and abandoned projects, and updating disclosure checklists.

The session also surveys major GAAP changes scheduled for private companies from 2026 through 2030, including updates on income tax disclosures, credit losses, convertible debt, share-based consideration, environmental credits, interim reporting, and government grants. All listed pronouncements permit early adoption.

Keywords

FASB standards

ASU 2025-06

internal-use software

capitalization criteria

early adoption

implementation planning

audit considerations

website development costs

private company GAAP

income tax disclosures