FSG Quarterly Financial Services Update – Q4 2024

Happy New Year!

In this edition of the Quarterly Financial Services Update, we’ve compiled the latest information on financial reporting and accounting issues - some of which are currently being evaluated by regulatory agencies and not resolved at this time. We have also compiled a list of items for consideration in your financial reporting and disclosures for the fourth quarter and a summary of recently issued accounting pronouncements (see Appendices for a summary of recently issued accounting pronouncements and the related effective dates).

Some of the key highlights in the update include:

• A reference guide for Core Processing System Conversion Accounting: Guidance on accounting treatments for expenses across various phases of system conversion projects.
• An article on Model Risk Management: Steps for launching and managing model risk programs in financial institutions.
• FASB Updates: New accounting standards, including improved income statement disclosures (effective 2026) and guidance on convertible debt instruments (effective 2025).
• Regulatory Updates:
  • Leadership changes at the SEC with a potential deregulatory focus.
  • Risk management strategies outlined by OCC and Federal Reserve reports.
  • PCAOB releases on audit committee communications and auditor responsibilities.
• Emerging Trends: Discussions on evolving standards for KPIs like EBITDA and free cash flow, along with proposed guidance for environmental credits and government grants.

Download the full report here.

During the fourth quarter of 2024, we also hosted two forums, both of which were recorded and can be accessed below.

Risk Management, Compliance and Internal Audit Track Forum: Our financial services team addressed updates on the status of 1071, concepts in new IIA standards, AI and cybersecurity risks, model risk management, and regulatory exception topics to help your financial institution anticipate and respond to risks.

Finance, Accounting, and Strategy Forum: Our team shared tax and accounting updates, cybersecurity and fraud, and emerging legal, economic, and balance sheet management trends.

As always, our team is here to help you navigate these complexities. Reach out to us below to get started.

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The information provided in this communication is of a general nature and should not be considered professional advice. You should not act upon the information provided without obtaining specific professional advice. The information above is subject to change.