In this edition of GAAP Update Service, we provide a summary and update on the projects industry experts believe are most likely to result in a final rule in 2021. These projects include:

• LIBOR/Reference Rate Reform: Scope of the 2020 reference rate reform standard and certain hedging issues.
• Warrants: Modifications of freestanding warrants classified as equity.
• Lease Accounting: Additional issues stemming from the 2016 lease standard.
• Private Companies – Fair Value of Stock Options: Practical expedient for determining the fair value of common stock when estimating a stock option’s fair value.
• Private Companies – Revenue Recognition for Franchisors: Industry exception to the 2014 revenue standard.
• Private Companies – Goodwill Impairment: Exception to the triggering event rules.