United States: Accounting Standards

Buffett was talking about public companies, of course, but his maxim applies equally to purchases of small and closely-held business. Generally speaking, the lower the price, the better the value—if a buyer does their diligence, and assuming no fraud.

The CAS Board has published a final rule rescinding several Cost Accounting Standards while retaining specific requirements to protect government interests, marking a significant step in aligning CAS with generally accepted accounting principles. The changes will impact how contractors account for compensated personal absence, material acquisition costs, and tangible asset capitalization and depreciation. Contractors directly affected by the rescission of CAS 408 will benefit from an express exemption from

This comprehensive mid-year update examines critical accounting standards, regulatory changes, and emerging trends that finance leaders must navigate in 2026. From new FASB guidance on PIK dividends and environmental credits to SEC proposals reshaping reporting requirements and filer classifications, the landscape is evolving rapidly. The analysis also explores the surge in mega-IPO activity, AI integration in finance functions, and strategic priorities for building resilient accounting operations.

The Financial Accounting Standards Board has issued new guidance clarifying how companies should account for equity-based customer incentives, addressing long-standing uncertainty around vesting conditions and forfeiture policies. The update aims to reduce diversity in practice and improve the accuracy of revenue reporting when share-based consideration is granted to customers.

Inconsistent financial records and overstated revenue quickly erode buyer trust, often reducing offers or derailing negotiations.

On February 13, 2026, in Fortis Advisors, LLC v. Stillfront Midco AB,[1] the Delaware Supreme Court held that an alternative dispute resolution ("ADR") provision in a Merger Agreement allowed an arbitrator—from an accounting firm, BDO USA, LLP ("BDO")—to resolve all issues, including legal issues, with respect to earnout calculations.

On March 30, 2026, the U.S. Department of Labor (DOL) proposed detailed guidance on the prudential selection of designated investment alternatives (DIAs) for participant-directed individual account plans.

On February 10, 2026, the Delaware Superior Court issued a notable decision in Monica, et al. v. Delta Data Software, Inc.,1 addressing the treatment of earn-out conditions where post-closing conduct allegedly affects whether those conditions occur.

District court denies motion to dismiss singer-songwriter’s copyright infringement suit accusing rapper Travis Scott and others of using her demo to create 2023 hit “Telekinesis,”...