Private company insights: reporting reminders for private companies

As private companies look towards 2025, leaders remain optimistic despite ongoing macroeconomic uncertainties. The focus continues to be on leveraging technology and enhancing workforce capabilities to drive transformation. Strategic execution is key, as successful initiatives can enhance resilience, while poor implementation may lead to negative outcomes.

Companies are increasingly confident in their ability to navigate challenges such as supply chain disruptions, persistent inflation, high interest rates, market volatility and geopolitical tensions. These factors are expected to continue impacting financial statements, requiring careful management of accounting and regulatory complexities.

Private companies should be aware of new accounting standards that are required to be adopted. These include customer contracts acquired in a business combination; common control leases; disclosure of supplier finance programs; and convertible instruments and contracts in an entity’s own equity. In addition to the standards that are required to be adopted in 2024, there are several other standards that are eligible for early adoption as outlined in the publication. Early adoption of these standards may offer strategic advantages. In addition, staying informed about FASB projects is crucial for anticipating future impacts.

The demand for transparent sustainability disclosures has led to new reporting requirements across various jurisdictions, including the IFRS Sustainability Disclosure Standards and the European Sustainability Reporting Standards under the EU's CSRD. Companies must navigate these frameworks, along with local obligations like California's laws, to ensure compliance and build stakeholder trust, integrating sustainability into their financial strategies for long-term resilience.