Deloitte’s Kristin Bauer on What’s Next for GAAP and the Role of Industry Feedback

Why It Matters

The shift toward incremental GAAP tweaks reduces regulatory uncertainty for REITs and other issuers, while AI‑driven accounting challenges and faster feedback loops could reshape compliance costs and reporting practices.

Key Takeaways

• FASB to focus on incremental GAAP tweaks, not major overhauls
• AI-driven transactions raise new accounting classification challenges
• Standard‑setters may use AI to speed comment‑letter reviews
• Industry engagement essential for practical, solution‑focused standards
• Deloitte expects targeted improvements in areas with consistent stakeholder feedback

Pulse Analysis

The Financial Accounting Standards Board’s pivot toward refinement reflects a broader maturation of U.S. accounting standards. After a decade of high‑profile projects—such as ASC 606 for revenue and ASC 842 for leases—FASB now views GAAP as a stable foundation. This stability allows the board to allocate resources to narrow, high‑impact areas where stakeholders have repeatedly signaled friction, delivering quicker, more predictable updates that limit disruption for public companies and REITs alike.

Artificial intelligence is accelerating both the scale and speed of financial transactions, introducing novel accounting dilemmas around capital‑intensive AI deployments, lease‑back structures, and the classification of algorithm‑generated revenue. As AI models automate data collection, they also generate massive comment‑letter volumes, prompting regulators to experiment with AI‑assisted review tools. These tools can flag recurring themes, prioritize high‑risk issues, and compress the standard‑setting timeline, ultimately delivering more responsive guidance for market participants.

For industry participants, the message is clear: proactive engagement is now more valuable than ever. By submitting concrete use cases and collaborative solutions, firms can influence the precise tweaks that will shape the next iteration of GAAP. Deloitte’s outlook suggests that the most successful companies will pair robust internal AI governance with active dialogue in standard‑setting forums, ensuring that emerging technologies are reflected accurately in financial reporting while minimizing compliance burdens.