How do these changes affect auditors?

Following Chairman Atkins remarks on PCAOB oversight at the conference, Chief Accountant Kurt Hohl described his views on whether PCAOB’s inspection program should focus more of its efforts on reviewing audit firms’ systems of quality control (QC), rather than reviews of individual audit files. Some stakeholders believe this would be a more efficient and effective approach to audit regulation. Hohl noted that moving the focus of the inspection to firm-level QC may hold firm leadership more accountable than the current approach, which is more focused on individual audit teams.

What should public companies focus on related to financial reporting?

For companies with a single reportable segment, ASU 2023-07 allows for companies to cross-reference certain required segment disclosures to the face of the financial statements. At the conference, Corp Fin staff noted that such a cross-reference might not be adequate to cover all the required segment disclosures. For example, required disclosures about the chief operating decision maker (CODM) and how the CODM uses the segment measure of profit or loss, among others, would likely not be addressed elsewhere in the financial statements. Single reportable segment companies should make sure all the required segment disclosures are made, as this appears to be a focus area of the staff. Corp Fin staff also emphasized that when the CODM uses multiple measures of segment profit or loss, the measure that is most consistent with U.S. GAAP is required to be disclosed. As an example, the staff observed that if a CODM uses both EBITDA and adjusted-EBITDA metrics, EBITDA would be the required measure because adjusted-EBITDA includes additional adjustments that move the measure farther away from U.S. GAAP. The staff also highlighted that if significant expense information isn’t required to be disclosed for a particular reportable segment, companies still need to disclose the nature of the expense information used by the CODM to manage operations. Income taxes ASU 2023-09 is effective for the 2025 annual financial statements of calendar year-end companies. The standard requires more disaggregated information to be included in the rate reconciliation and more jurisdictional information about income taxes paid. As companies make these disclosures for the first time in 2026, pay special attention to whether any new controls should be implemented over the completeness and accuracy of the newly required information.

Article

Q4 2025 SEC regulatory and reporting updates

Jan. 28, 2026 · Authored by Porter Loud

The fourth quarter of 2025 capped a year of transition and a clear shift in regulatory philosophy under SEC Chairman Paul Atkins.

Beginning with a record-setting government shutdown, the quarter ended with leaders from the SEC, FASB, and PCAOB sharing important insights on their priorities moving into the new year at the 2025 AICPA & CIMA Conference on Current SEC and PCAOB Developments. Learn more about these insights and how it will impact public companies below.

What’s happening at the SEC?

The SEC’s regulatory priorities under Chairman Atkins continued to take shape in Q4 amidst a dynamic economic and political landscape.

Most of the SEC staff was furloughed during the 43-day government shutdown that began on Oct. 1, slowing the Commission’s work. At the conference, James Moloney, the Director of the Division of Corporation Finance (Corp Fin), said the Commission received approximately 1,000 registration statements during the shutdown that the staff is reviewing on a first-in, first-out basis while prioritizing IPOs. Corp Fin staff also published guidance to help answer common questions related to pending filings with the Commission. The staff will likely work through most of their backlog early in 2026, but there may be lingering effects that companies should keep in mind.

On November 17, Corp Fin also released a statement that due to resource considerations, it generally won’t respond to no-action requests when a company plans to exclude shareholder proposals under Rule 14a-8. This action generally gives public companies greater autonomy in deciding whether to exclude shareholder proposals.

Regulatory priorities

In Chairman Atkins keynote remarks at the conference, he once again highlighted his desire to make IPOs great again by removing unnecessary pain points that come along with being a public company. Some of the areas he noted as priorities moving forward include:

Rationalizing disclosures. Reducing disclosure overload by streamlining risk factors and executive compensation disclosures to be based on materiality.

Porter Loud

Principal

Next up

The FASB issues amendments to improve reportable segment disclosures

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The information provided here is of a general nature and is not intended to address the specific circumstances of any individual or entity. In specific circumstances, the services of a professional should be sought. Tax information, if any, contained in this communication was not intended or written to be used by any person for the purpose of avoiding penalties, nor should such information be construed as an opinion upon which any person may rely. The intended recipients of this communication and any attachments are not subject to any limitation on the disclosure of the tax treatment or tax structure of any transaction or matter that is the subject of this communication and any attachments.

Q4 2025 SEC regulatory and reporting updates

What’s happening at the SEC?

Regulatory priorities

Porter Loud

The FASB issues amendments to improve reportable segment disclosures

Financial reporting

Artificial intelligence

Filer status and SRC eligibility

Semiannual reporting

Leadership changes

How do these changes affect auditors?

What should public companies focus on related to financial reporting?

Income taxes

Have questions? Baker Tilly can help.