FASB June 2026 Meeting Outcomes and Standard Updates

June 2026 was one of the FASB's most active months of the year. Four board meetings, an EITF session, a joint FASB/IASB education meeting, and two Private Company Council sessions produced tentative decisions across at least seven distinct technical projects. No new ASU was finalized in June itself, but the pipeline moved fast, and two exposure drafts opened for public comment.

This briefing is for CFOs, controllers, and technical accounting teams preparing for Q2 2026 close. It maps every June board session to its tentative decisions, explains what those decisions mean before any ASU is finalized, and flags the H2 2026 projects you need to start monitoring now.

Key takeaway: Everything the FASB decided in June 2026 is tentative, not authoritative GAAP. Tentative decisions can change. Do not update accounting policies or hedge documentation based solely on board meeting outcomes, but do start your impact assessments now.

What Is a FASB Accounting Standards Update, and Why Do June's Decisions Matter?

An Accounting Standards Update (ASU) is the vehicle the FASB uses to amend the Codification, but it is not itself authoritative GAAP. The FASB Codification is the sole source of authoritative US GAAP (other than SEC rules for registrants). An ASU communicates the change; the amended Codification text is what preparers follow.

Board meeting tentative decisions sit upstream of an ASU. They represent the board's current thinking, documented in handouts and tentative-decisions pages on fasb.org, but they can be revised during redeliberation or in response to comment letters. The practical implication: June's decisions tell you where the FASB is heading, which is exactly what you need to brief your audit committee and external auditors before Q2 close.

2026 ASUs Issued So Far: Status Check

As of July 1, 2026, two ASUs have been issued in 2026. Neither was finalized in June.

For a deep dive on ASU 2026-01, see ASU 2026-01 PIK Dividends Accounting: Measurement, EPS and Transition Guide. For ASU 2026-02 and its SEC disclosure implications, see What ASU 2026-02 Means for Your SEC Disclosures Now and ASC 818 vs. IFRS: Accounting for Carbon Credits Under ASU 2026-02.

For context: 2025 produced 12 ASUs (ASU 2025-01 through ASU 2025-12). With only two through mid-2026, H2 is likely to see a meaningful acceleration in finalizations, particularly from the projects advanced in June.

June 2026 FASB Board Meetings: Decision by Decision

The FASB held four board meetings in June 2026, covering seven distinct technical projects. Here is what each session produced.

June 3: Indexation of Debt and Equity Instruments (ASC 815-40)

The board advanced tentative decisions on its project examining how entities determine whether a financial instrument or embedded feature is indexed to an entity's own stock under ASC 815-40. This is the Codification section that governs whether warrants, convertible notes, and other equity-linked instruments are classified as equity or as liabilities.

The indexation rules under ASC 815-40 have been a persistent source of diversity in practice, particularly for SPAC-era companies with complex warrant structures and for issuers of convertible debt with variable-settlement features. The June 3 board handout and tentative decisions are publicly available on fasb.org.

If your entity has warrants, convertible notes with variable settlement, or other equity-linked instruments, flag this project for your technical accounting team now. A change to the indexation framework could affect liability vs. equity classification and, by extension, EPS dilution calculations.

June 11: Statement of Cash Flows, EPS Agenda Prioritization, and NFP Topics

The board addressed three separate items at its June 11 meeting: targeted improvements to ASC 230 (statement of cash flows), and agenda prioritization discussions for earnings per share and not-for-profit topics.

The cash flows project has been on the FASB's agenda for several years. It targets classification questions under ASC 230 that have generated significant diversity in practice, particularly around operating vs. investing vs. financing treatment of certain cash receipts and payments. The June 11 tentative decisions represent continued progress, but no final ASU is imminent.

The agenda prioritization discussions for EPS and NFP topics are a different category of decision. When the board conducts agenda prioritization, it is deciding whether to add a topic as a formal technical agenda project, which is the precursor to an exposure draft. A decision to add EPS would signal the FASB intends to address longstanding EPS calculation questions, including treatment of certain instruments in the diluted EPS computation. Watch the FASB past meetings page for the tentative decisions on both.

June 17: Investment Companies with Equity Securities Subject to Contractual Sale Restrictions (Topic 820)

The board met specifically on fair value measurement for investment companies holding equity securities subject to contractual sale restrictions. This project also appeared on the May 13, 2026 agenda, confirming the board was in active redeliberation heading into June.

The practical consequence came quickly: a Topic 820 exposure draft titled "Fair Value Measurement (Topic 820): Investment Companies with Equity Securities Subject to Contractual Sale Restrictions" was issued in July 2026, immediately following the June 17 session. That timing confirms the board completed its pre-ED deliberations in June. Investment companies and their auditors should review the ED and assess whether to submit a comment letter.

The June 17 board handout and tentative decisions are available on fasb.org.

June 24: Financial KPIs, LIBOR Codification Cleanup, and Hedge Accounting

The June 24 meeting was the most consequential of the month, covering three distinct projects in a single session.

Financial KPIs for Business Entities

This is arguably the most consequential long-term project on the FASB's active agenda for public companies, and it is almost entirely absent from existing SERP coverage.

The project originated from an Invitation to Comment issued November 2024. The board is examining whether GAAP should require or permit disclosure of non-GAAP financial measures and other KPIs in the financial statements or notes. The Investor Advisory Committee (which met May 28, 2026) and the Public Markets Advisory Committee (which met May 14, 2026) have both provided input that informs this project.

If the FASB ultimately requires KPI disclosures in the financial statements or notes, it would affect MD&A drafting, earnings release formats, and potentially the scope of auditor attestation. No final decision has been made on scope or form, but the June 24 tentative decisions represent real progress. Finance teams should track this project closely and consider whether to engage through the comment process.

Codification Improvements Related to LIBOR References

This is a technical cleanup project, not a substantive change to LIBOR transition guidance. The board is removing or updating references to LIBOR and other discontinued reference rates that remain embedded in the Codification following the transition period addressed by ASC 848.

The practical risk is narrow but real: if your hedge documentation or system configurations still reference specific Codification paragraphs that contain LIBOR language, the cleanup ASU may require updates to those references. This is distinct from the economic substance of your LIBOR transition, which ASC 848 already addressed. The pattern here is consistent with ASU 2025-12 (Codification Improvements, December 2025), which is effective for all entities for annual periods beginning after December 15, 2026.

Hedge Accounting

The June 24 hedge accounting discussion likely reflects redeliberation of issues raised during the comment period on the June 2026 exposure draft on Topic 815 (discussed below). The June 24 board handout and tentative decisions are available on fasb.org. According to Deloitte's DART summary, the discussion focused on the characteristics of a hedging relationship.

Active Exposure Drafts Open for Comment

As of July 2026, three exposure drafts are open for comment:

For the pension discount rate ED, see FASB Proposed ASU on ASC 715-30: Pension Discount Rate for Market-Return Cash Balance Plans (2026) for a full analysis.

The hedging ED and ASU 2025-09: how they interact

This is the question most preparers are not getting a clear answer on. ASU 2025-09 (Derivatives and Hedging, Topic 815: Hedge Accounting Improvements) was issued November 2025 and is effective for public business entities for annual periods beginning after December 15, 2026, with early adoption permitted. The June 2026 ED addresses targeted improvements to interest rate risk hedging and net investment hedging, building on ASU 2025-09 rather than replacing it.

The practical read: if you are already implementing ASU 2025-09, do not pause. The ED addresses incremental issues. However, if the ED produces a final ASU before your ASU 2025-09 effective date, you may be able to adopt both simultaneously, which is cleaner from a transition standpoint. Monitor the comment period and the board's redeliberation timeline.

EITF June 23 Meeting: Mortgage Servicing Rights Recapture

The Emerging Issues Task Force met on June 23, 2026. The EITF had been working on an issue involving mortgage servicing rights (MSR) recapture, a topic that also appeared on the May 27, 2026 FASB board agenda, suggesting the EITF was close to reaching a consensus.

This matters for financial institutions. EITF consensuses, once ratified by the FASB board, become authoritative GAAP through ASU issuance. Banks and mortgage servicers with significant MSR portfolios should track the EITF project page for the final consensus and its effective date.

FASB/IASB Joint Education Meeting: Convergence Watch

On June 5, 2026, the FASB and IASB held a joint education meeting in Norwalk, covering financial instruments topics. Education meetings are non-decision-making, but they signal areas of active dialogue between the two standard-setters.

According to IAS Plus (Deloitte), the purpose of the agenda paper was to provide FASB members with a project update on financial instruments-related topics. The IASB's own June 2026 work included active projects on amortised cost measurement and financial instruments with characteristics of equity (FICE), as reflected in the IASB Update June 2026.

For dual reporters preparing both GAAP and IFRS financial statements, the key watch item is whether FASB and IASB decisions on financial instrument classification and measurement converge or diverge. The June 5 meeting does not signal imminent convergence, but it confirms the dialogue is active.

H2 2026 Pipeline: Projects to Monitor

The FASB's active technical agenda is unusually broad heading into H2 2026. The projects most likely to produce an exposure draft or final ASU before year-end, based on board-level activity in May and June 2026, include:

• Hedge accounting (Topic 815): ED already issued June 2026; final ASU possible in H2 2026 or early 2027 depending on comment volume.
• Investment companies, contractual sale restrictions (Topic 820): ED issued July 2026; redeliberation and final ASU likely to follow in 2027.
• Statement of cash flows (ASC 230): Long-running project; June 11 tentative decisions suggest continued progress but no imminent finalization.
• Financial KPIs for business entities: Still in early deliberation; no ED expected in 2026, but watch for a proposed ASU in 2027.
• Nonrefundable transferable tax credits: Active board discussion in May 2026; directly relevant to companies claiming IRA transferable credits. No ED issued yet, but the project is moving.
• Accounting for commodities: New addition to the agenda as of May 27, 2026; early-stage deliberation. Relevant for energy, agriculture, and commodity-trading companies.
• Intangibles recognition: Invitation to Comment issued December 2024; board discussion in May 2026. Potentially transformative if the FASB moves toward recognizing internally generated intangibles.
• Equity method targeted improvements: Active board discussion in May 2026; affects any entity with significant equity method investments.
• Subjective acceleration clauses (debt classification): Board discussion May 27, 2026; relevant for entities with revolving credit facilities containing MAC or subjective acceleration provisions.

Two additional items from earlier in 2026 also warrant attention:

• The FASB held a public roundtable on May 27, 2026 on implementation of ASU 2024-03 (disaggregation of income statement expenses, Subtopic 220-40), which is effective for public companies for fiscal years beginning after December 15, 2026. The roundtable signals the FASB is monitoring implementation challenges and may issue targeted guidance.
• The FASB held a CECL post-implementation review roundtable on May 12, 2026. PIR roundtables can foreshadow targeted amendments. Banks and credit unions still refining their CECL models under ASC 326 should watch for any follow-on ASU.

Key Effective Dates Coming Up: 2026 and 2027

Several standards finalized in 2025 take effect for public business entities in fiscal years beginning after December 15, 2026, meaning calendar-year PBEs face a January 1, 2027 effective date for all of the following:

ASU 2026-02 (Environmental Credits, Topic 818) follows one year later for PBEs: annual periods beginning after December 15, 2027.

PCAOB Quality Control: One More Item for Q2 Briefings

The PCAOB issued a supplemental request for comment on proposed amendments to QC 1000 (A Firm's System of Quality Control) in June 2026. The comment deadline was July 9, 2026. According to EY AccountingLink, "the PCAOB retained the 15 December 2026 effective date and said it plans to pilot a quality control-focused inspection program in 2027 ahead of a broader rollout in 2028." Audit committees should be aware that their external auditors will be subject to the new QC framework beginning December 15, 2026.

Action Checklist for Finance Teams

Use this before your Q2 2026 audit committee briefing:

1. Confirm ASU 2025-09 adoption plan. Effective for calendar-year PBEs January 1, 2027. Decide whether to early adopt and whether to modify existing hedging relationships under the permitted transition relief.
2. Review the Topic 815 hedging ED. Assess whether to submit a comment letter. Understand how the ED supplements, rather than replaces, ASU 2025-09.
3. Assess ASU 2026-01 impact. Effective for all entities for annual periods beginning after December 15, 2026. If your entity issues PIK dividends on equity-classified preferred stock, update your measurement approach and EPS disclosures.
4. Begin ASU 2026-02 readiness assessment. PBEs have until January 1, 2028, but early adoption is permitted. If your entity holds carbon credits or environmental credit obligations, see What Is FASB Topic 818 and Who Does It Apply To?.
5. Flag the indexation project (ASC 815-40). If your entity has warrants, convertible notes, or equity-linked instruments, assign someone to track the June 3 tentative decisions and monitor for an exposure draft.
6. Track the financial KPIs project. No ED yet, but the June 24 board discussion confirms this project is active. Start an internal inventory of KPIs you currently disclose outside GAAP financial statements.
7. Review LIBOR references in hedge documentation. The June 24 codification cleanup project will eventually produce an ASU. Identify any documentation or system configurations that reference specific Codification paragraphs containing LIBOR language.
8. Monitor the EITF mortgage servicing rights consensus. If your entity holds MSRs, track the EITF project page for the final consensus and its effective date.
9. Prepare for ASU 2024-03 (expense disaggregation) implementation. The May 27 public roundtable signals implementation questions are real. Effective for calendar-year PBEs January 1, 2027.
10. Set up a FASB monitoring workflow. The fastest way to track board activity: bookmark the FASB past meetings page, subscribe to EY AccountingLink weekly updates, and check IAS Plus for joint FASB/IASB meeting notes.

FAQ

Were any new ASUs finalized in June 2026? No. As of July 1, 2026, only two ASUs have been issued in 2026: ASU 2026-01 (April) and ASU 2026-02 (May). All June 2026 board activity was deliberative, producing tentative decisions rather than final standards.

What is the difference between a tentative decision and a final ASU? A tentative decision reflects the board's current thinking at a specific meeting. It is documented on fasb.org but is not authoritative GAAP and can change during redeliberation or in response to comment letters. A final ASU amends the Codification and becomes part of authoritative GAAP upon issuance.

What is the FASB financial KPIs project and will it affect our MD&A? The project is examining whether GAAP should require or permit disclosure of non-GAAP financial measures and other KPIs in the financial statements or notes. If the FASB ultimately requires such disclosures, it could affect MD&A drafting, earnings release formats, and auditor attestation scope. No ED has been issued yet; the June 24 board discussion advanced the project but did not finalize scope.

Is the June 2026 hedging ED a replacement for ASU 2025-09? No. The June 2026 ED on Topic 815 addresses targeted improvements to interest rate risk hedging and net investment hedging, building on ASU 2025-09 rather than superseding it. Entities implementing ASU 2025-09 (effective for calendar-year PBEs January 1, 2027) should continue their implementation work.

What did the FASB and IASB discuss at their June 5 joint education meeting? The meeting covered financial instruments topics and was non-decision-making. It signals active convergence dialogue on financial instruments, relevant for dual reporters. The IASB's concurrent work on amortised cost measurement and financial instruments with characteristics of equity (FICE) is the primary area of potential GAAP/IFRS divergence to watch.

How do I track FASB board meeting outcomes in real time? Bookmark the FASB past meetings page, which posts handouts and tentative decisions within days of each meeting. EY AccountingLink's weekly US Week in Review and IAS Plus meeting notes are the most reliable secondary sources for synthesis and context.