United States: Accounting Standards

The Financial Accounting Standards Board issued Accounting Standards Update 2026-03, Fair Value Measurement (Topic 820): Investment Companies with Equity Securities Subject to Contractual Sale Restrictions, on September 9, 2026. While the update is aimed at investment company accounting, it could benefit estate planners and valuation professionals who regularly defend marketability discounts on closely held and restricted stock.

Access to capital in the cannabis industry is increasingly driven by financial credibility, not just market opportunity or growth potential.

Winston Taylor and Hagens Berman announce that their audit of Power Five Conference revenues has uncovered over $44 million in additional compensation for Division I athletes under the House Revenue Sharing System. The collaborative audit process with the NCAA and major conferences identified previously unreported revenues, resulting in an extra $131,438 per participating school for the 2026-27 academic year.

The SEC has established a specialized Financial Reporting and Accounting Unit within its Division of Enforcement, signaling renewed focus on accounting fraud and financial reporting misconduct. Led by Timothy Zimmerman and staffed with attorneys and accountants possessing specialized expertise, this unit aims to crack down on bad actors in the accounting and auditing profession. The move reflects Chair Paul S. Atkins' emphasis on returning to core accounting principles and protecting investors through rigor

The Securities and Exchange Commission has established a specialized Financial Reporting and Accounting Unit within its Division of Enforcement, signaling a strategic investment in concentrated expertise for investigating accounting fraud, financial reporting violations, and auditor misconduct.

When SEC staff questioned a company's segment reporting after management described the business differently on an earnings call than in SEC filings, it highlighted a growing trend of regulators listening to earnings calls. The company's detailed response explaining why it maintains one reportable segment despite discussing product-level metrics reveals the technical considerations companies must navigate when presenting operational information to investors versus financial reporting requirements.

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.

The IRS has issued final regulations under Treasury Decision 10048 that fundamentally restructure the reporting timeline for partnerships when a partner sells their interest, eliminating a January 31 deadline that practitioners found...

Year-end reporting in private equity directly affects valuation integrity, investor confidence, and transaction readiness. This comprehensive guide examines how sponsors, fund CFOs, and portfolio company leaders can strengthen financial controls, address technical accounting complexities, and build scalable reporting infrastructure. Early focus on these critical areas reduces reporting friction and positions organizations for smoother audits and enhanced limited partner communications.