Q1 2026 Quarterly accounting webcast

Evolving Accounting Landscape

The accounting field enters Q1 2026 amid significant regulatory shifts driven by the new U.S. administration's deregulation agenda. Central to this is the One Big Beautiful Bill Act (OBBBA), enacted in late 2025, which alters key tax provisions. Effective January 1, 2026, it tightens the business interest expense deduction under Section 163(j), excluding certain foreign-source income and modifying capitalized interest treatment. This could limit deductions for leveraged companies, raising effective tax rates and squeezing cash flows.

Beyond interest, OBBBA caps expensing of depreciable assets under Section 179 at higher but more restricted levels, curbs C corporation charitable deductions under Section 170, and expands aggregation rules for excess executive pay under Section 162(m). International provisions adjust global intangible low-taxed income (GILTI), foreign-derived intangible income (FDII), and base erosion anti-abuse tax (BEAT), potentially hitting multinationals with up to 15% higher effective rates on foreign earnings. Early estimates suggest aggregate corporate tax increases exceeding $200 billion annually, affecting sectors like real estate, manufacturing, and tech.

Concurrently, the SEC under Chairman Paul Atkins advances disclosure reforms, including a fast-tracked proposal for semi-annual reporting to replace quarterly filings. This responds to calls for reduced burdens, potentially saving companies millions in preparation costs but sparking debate over diminished transparency. Investors argue less frequent updates could amplify volatility, as seen in past markets with biannual regimes. Meanwhile, abandoned climate disclosure rules revert to 2010 guidance, emphasizing material financial risks over prescriptive metrics.

Threshold adjustments also take effect January 1, 2026, with CFPB raising exemption limits for credit card and mortgage regulations based on CPI-W, from $33,500 to $34,200 for certain appraisals. FDIC indexes regulatory thresholds for inflation, impacting compliance for financial institutions. These tweaks aim to reflect economic realities but require system updates, with non-compliance risking fines up to $1 million per violation.

Non-obvious tensions emerge between deregulation and stakeholder interests. While businesses welcome lighter loads, institutional investors like pension funds worry about opaque risks, potentially shifting capital abroad where IFRS S2 amendments enhance GHG disclosures from 2027. Trade-offs include short-term cost savings versus long-term litigation risks from inadequate reporting, as evidenced by recent SEC enforcement on accounting fraud netting $40 million penalties.