FASB June 2026 Meeting Outcomes: Every Decision, Mapped for Preparers

June 2026 was one of the FASB's most active months of the year. Five board-level sessions, two new exposure drafts, a joint FASB/IASB education meeting, and two Private Company Council days produced tentative decisions across at least seven distinct technical projects. No new ASU was finalized in June, but the pipeline moved fast.

This briefing is for CFOs, controllers, and technical accounting teams heading into Q3 2026 close. It maps every June board session to its tentative decisions, explains what those decisions mean before any ASU is finalized, and tells you which projects require action now versus which are still too early to touch.

Key takeaway: Everything the FASB decided in June 2026 is tentative, not authoritative GAAP. Tentative decisions can change during redeliberation or in response to comment letters. Do not update accounting policies based solely on board meeting outcomes, but do start your impact assessments and comment letter reviews now.

What Is an 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 for non-governmental entities (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 Q3 close.

2026 ASUs Issued So Far: The Baseline

As of July 6, 2026, two ASUs have been issued in 2026. Neither was finalized in June. For context, 2025 produced 12 ASUs (2025-01 through 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.

For a deep dive on ASU 2026-02 and its SEC disclosure implications, see ASU 2026-02 Accounting Standard Overview and Adoption Guide and What Is FASB Topic 818 and Who Does It Apply To?.

June 2026 FASB Board Meetings: The Full Calendar

Five board-level sessions covered nine distinct technical items across the month. Here is the complete picture.

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

The board advanced tentative decisions on 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 June 3 board meeting focused on Step 2 of the indexation guidance, where diversity in practice has persisted since the original ASU 2017-11 amendments. The Private Company Council confirmed at its June 1-2 meeting that it generally supports pursuing targeted improvements to Step 2, following stakeholder feedback.

In plain terms: Step 2 asks whether a settlement amount would equal the difference between the fair value of a fixed number of shares and a fixed monetary amount. Instruments with variable settlement features, anti-dilution provisions, or cash settlement alternatives can fail this test, triggering liability classification and mark-to-market volatility in earnings. The FASB's tentative decisions are aimed at reducing that diversity.

Who should act: Entities with warrants, convertible notes with variable settlement, or SPAC-era equity-linked instruments should flag this project for their technical accounting team. A change to the indexation framework could affect liability vs. equity classification and, by extension, diluted EPS calculations.

June 5: Joint FASB/IASB Education Meeting

The FASB and IASB held a joint education session in Norwalk on June 5, covering eight agenda papers across financial instruments, business combinations, statement of cash flows, and digital assets. Education meetings produce no decisions, but they reveal where the two boards' thinking converges or diverges.

The published agenda shows the IASB presented updates on Risk Mitigation Accounting, Financial Instruments with Characteristics of Equity, the post-implementation review of IFRS 9 hedge accounting, and amortised cost measurement. The FASB presented on business combinations and asset acquisitions, goodwill, statement of cash flows, TDRs and debt modifications, indexation of debt and equity, and digital assets including stablecoins.

The overlap on statement of cash flows and indexation is notable: both boards are actively deliberating these topics in parallel, which matters for multinational preparers filing under both US GAAP and IFRS. Convergence is not guaranteed, but the joint education format keeps the dialogue open.

June 10-11: Two Exposure Drafts and Three Board Decisions

Proposed ASU: Pension Discount Rate for Market-Return Cash Balance Plans (ASC 715-30)

On June 10, the FASB released a proposed ASU proposing clarifications to how entities determine the discount rate for measuring the benefit obligation of certain market-return cash balance plans under ASC 715-30. The proposal addresses a specific plan design where the benefit obligation is tied to a market-return crediting rate rather than a fixed rate.

Deloitte's IAS Plus published a Heads Up analyzing the proposal's scope and implications. For a full technical breakdown, see Finrep's dedicated coverage at FASB Proposed ASU on ASC 715-30: Pension Discount Rate for Market-Return Cash Balance Plans.

Who should act: Entities sponsoring market-return cash balance plans should review the ED and assess whether to submit a comment letter. The comment deadline was not specified in the dossier; check fasb.org for the due date.

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

The June 11 board meeting covered three separate items.

Statement of cash flows (ASC 230): The board reached tentative decisions on its ongoing project targeting classification diversity under ASC 230, particularly around operating vs. investing vs. financing treatment of certain cash receipts and payments. No final ASU is imminent, but the project is advancing.

Agenda prioritization: earnings per share. This is 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, the precursor to an exposure draft. The published minutes confirm these were substantive deliberations. A decision to add EPS would signal the FASB intends to address longstanding questions about diluted EPS computation, including treatment of certain instruments that have generated diversity in practice.

Agenda prioritization: not-for-profit topics. The NFP sector has been waiting for updated guidance on several fronts. The June 11 discussion signals the board is evaluating whether to formalize new NFP projects. NFP preparers and their auditors should monitor the FASB's past meetings page for the published tentative decisions.

June 17: Investment Companies and the Hedge Accounting ED

Investment Companies: Contractual Sale Restrictions (Topic 820)

The board met on June 17 to deliberate fair value measurement for investment companies holding equity securities subject to contractual sale restrictions, and the project moved fast. Board meeting minutes confirm tentative decisions were reached. Then, on July 1, 2026, the FASB released a proposed ASU on investment company fair value reporting, meaning this project went from board deliberation to published exposure draft in two weeks.

That pace matters. Investment companies and their auditors should treat this as a near-term adoption planning item, not a watch-and-wait situation.

Proposed ASU: Targeted Improvements to Hedge Accounting (Topic 815)

On June 17, the FASB released a proposed ASU on targeted improvements to hedge accounting, and this is the project where most practitioners are confused. Here is the distinction that matters:

• ASU 2025-09 (Derivatives and Hedging, Topic 815: Hedge Accounting Improvements) is already finalized. It is effective for public business entities for annual periods beginning after December 15, 2026, meaning calendar-year public companies must adopt for fiscal year 2027. Early adoption is permitted.
• The June 17 proposed ASU is a separate, incremental proposal layered on top of ASU 2025-09. It represents additional targeted improvements the FASB identified after finalizing ASU 2025-09. It is still in the comment period and is not yet authoritative.

The practical consequence: calendar-year public companies face a two-layer adoption challenge. ASU 2025-09 is settled law requiring adoption planning now. The June 17 ED may add further changes on top, potentially before or shortly after ASU 2025-09's mandatory effective date. Hedge accounting teams should be tracking both simultaneously.

June 23: The EITF Meeting Most Recaps Ignore

The Emerging Issues Task Force met on June 23, 2026, and this session deserves more attention than it typically gets. The EITF's active issue on mortgage servicing rights recapture was on the agenda, continuing deliberations that appeared on the May 27 board meeting as well.

Why it matters: EITF consensus positions, once ratified by the FASB board, become authoritative GAAP quickly. For financial institutions and mortgage servicers, an EITF consensus on mortgage servicing rights recapture could affect how recapture provisions are recognized and measured. The EITF projects page carries the current status.

June 24: The Month's Most Consequential Meeting

The June 24 board meeting addressed three distinct projects in a single session, and all three produced tentative decisions.

Hedge Accounting: Further Deliberations

One week after releasing the June 17 ED, the board continued deliberations on hedge accounting at the June 24 session. The published minutes confirm additional tentative decisions were reached. This confirms the board is moving quickly on the incremental improvements, which increases the probability of a final ASU before or shortly after ASU 2025-09's mandatory effective date.

LIBOR Codification Improvements

The board also addressed codification improvements related to remaining LIBOR references in the Codification. ASU 2025-12 already covers 33 codification improvements effective for all entities for annual periods after December 15, 2026. The June 24 LIBOR cleanup may result in a further narrow-scope codification improvement ASU, addressing references that ASU 2025-12 did not catch.

Financial KPIs for Business Entities: A Milestone Decision

This is arguably the most consequential long-running FASB project, and it received tentative decisions at the June 24 meeting. The published minutes confirm the board advanced its thinking on a project that could eventually require public companies to disclose standardized non-GAAP financial metrics in their SEC filings.

The KPI project has been on the FASB's agenda for several years. The Investor Advisory Committee, which met May 28 and whose recap was published June 5, has been a consistent advocate for investor-facing disclosure improvements including this project. The June 24 tentative decisions represent a significant milestone that most monthly recaps have ignored entirely.

What preparers need to understand: if the KPI project results in an ASU requiring standardized disclosure of non-GAAP metrics, it would represent one of the most significant changes to public company financial reporting in years. The June 24 decisions are not final, but they signal the project is advancing toward an exposure draft. CFOs and IR teams should begin monitoring this project closely.

The Three-Bucket Framework: What to Do Right Now

Not all June 2026 activity requires the same response. Here is how to prioritize.

Bucket 1: Comment Letter Decisions Required Now

Two exposure drafts are open for public comment. Missing these windows means losing the ability to shape the final standard.

• Hedge accounting targeted improvements (June 17 ED): Review the proposed ASU against your existing hedge program. Assess how the incremental changes interact with your ASU 2025-09 adoption plan. Decide whether to submit a comment letter.
• Pension discount rate for market-return cash balance plans (June 10 ED): If you sponsor these plans, review the proposed ASU and Deloitte's Heads Up analysis. Assess the impact on your benefit obligation measurement.
• Investment company fair value reporting (July 1 ED): Investment companies should review the proposed ASU released immediately after the June 17 board session.

Bucket 2: Adoption Planning Required Before Year-End 2026

These ASUs are finalized and mandatory for calendar-year public companies starting January 1, 2027.

For ASU 2025-09 specifically: adoption is prospective for all hedging relationships, and entities may elect to modify certain critical terms of existing hedging relationships without dedesignating the hedge upon adoption. That election requires advance preparation.

Bucket 3: Monitor but Do Not Act Yet

These projects produced June 2026 tentative decisions but are not yet at the ED stage or have longer-dated effective dates.

• Financial KPIs for business entities: Tentative decisions reached June 24. No ED yet. Monitor the FASB project page.
• Statement of cash flows (ASC 230): Active deliberations, no imminent ASU.
• Indexation: debt and equity (ASC 815-40): Tentative decisions reached June 3. No ED yet.
• EPS and NFP agenda prioritization: Agenda decisions reached June 11. Formal project addition not yet confirmed.
• ASU 2026-02 (Topic 818, Environmental Credits): Effective for public companies for annual periods after December 15, 2027. Early adoption permitted.
• ASU 2025-10 (Government Grants, Topic 832): Effective for public companies for annual periods after December 15, 2028. Three-year runway, but early policy decisions are warranted for entities with significant government grant activity.

Private Companies and NFPs: What June Means for You

Most FASB monthly recaps focus exclusively on public company impacts. The June 2026 PCC and NFP discussions are worth calling out separately.

The PCC meeting recap published June 18 confirms the council discussed:

• ESOPs: Diversity in practice on repurchase obligation disclosures, with user members calling for enhanced information and preparer members flagging concerns about estimating future repurchase obligations. The PCC supported focusing outreach on the gap between current disclosure requirements and users' informational needs.
• Lease accounting simplifications: Outreach planned on lease modifications, embedded leases, and lease classification criteria. Results will be discussed at a future PCC meeting.
• Indexation (ASC 815-40): PCC members generally supported targeted improvements to Step 2, aligning with the June 3 board tentative decisions.
• Equity method of accounting: PCC members supported the board's tentative decisions on a single threshold for applying the equity method, noting the proposed changes would reduce cost and complexity for private companies.

For NFP entities, the June 11 agenda prioritization discussion is the key item. A formal NFP project addition would signal the FASB intends to address NFP-specific reporting questions that have accumulated since ASU 2016-14.

One More Item: The PCAOB and AI Research

Two developments outside the core FASB meeting cycle are directly relevant to finance and audit teams.

PCAOB QC 1000: The PCAOB issued a supplemental request for comment on proposed amendments to QC 1000 (A Firm's System of Quality Control) in June 2026, with comments due July 9, 2026. The PCAOB retained the December 15, 2026 effective date and plans a quality control-focused inspection pilot in 2027 ahead of broader rollout in 2028. EY's AccountingLink noted the PCAOB said the supplemental request "reflects implementation feedback from stakeholders and is intended to better align certain provisions with other quality management standards and reduce compliance costs." Audit committees and CFOs should ensure their external auditors are tracking this.

FASB research project on data infrastructure and non-traditional lending: In April 2026, the FASB Chair added a new research project covering data infrastructure investments and non-traditional lending. This is the FASB's first formal acknowledgment that AI and data center accounting may need new guidance. No standard-setting action is imminent, but entities with significant data center or AI infrastructure investments should monitor this project as a potential future standard-setting area.

FAQ

Did the FASB issue any new ASUs in June 2026? No. The two 2026 ASUs (ASU 2026-01 on paid-in-kind preferred dividends and ASU 2026-02 on environmental credits/Topic 818) were finalized in April and May respectively. June produced tentative decisions and two new exposure drafts, but no finalized standards.

What is the difference between the June 17 hedge accounting ED and ASU 2025-09? ASU 2025-09 is already finalized and effective for calendar-year public companies starting January 1, 2027. The June 17 proposed ASU is a separate, incremental proposal for additional targeted improvements layered on top of ASU 2025-09. It is still in the comment period and is not yet authoritative GAAP.

What did the FASB decide about financial KPIs for business entities? The board reached tentative decisions at the June 24 meeting, advancing a project that could eventually require standardized non-GAAP metric disclosures in SEC filings. No exposure draft has been released yet. The published board meeting minutes carry the details.

What happened at the June 23 EITF meeting? The EITF deliberated its active issue on mortgage servicing rights recapture. Once the EITF reaches a consensus and the FASB board ratifies it, the position becomes authoritative GAAP. Financial institutions and mortgage servicers should monitor the EITF projects page for the outcome.

What did the Private Company Council discuss in June 2026? The PCC met June 1-2 and covered ESOPs (repurchase obligation disclosures), lease accounting simplifications, indexation guidance, equity method targeted improvements, and digital assets. The meeting recap was published June 18.

When must calendar-year public companies adopt ASU 2025-09 on hedge accounting? ASU 2025-09 is mandatory for public business entities for annual periods beginning after December 15, 2026, meaning January 1, 2027 for calendar-year companies. Early adoption is permitted. Adoption is prospective for all hedging relationships.