9.1 Overview
ASC 326 has been effective for all calendar-year entities since
2024. In addition, since the issuance of ASC 326, the FASB has amended the guidance
by releasing various ASUs that are now effective for all entities. As part of its
post-implementation review process, the FASB is continuing to evaluate whether ASC
326 is achieving its objective by considering stakeholder input and feedback, along
with other research, to determine whether any improvements should be made. Most
recently ,the Board issued ASU 2025-08, which expands the scope of the PCD “gross-up”
model (see Chapter 6),
and ASU
2025-05, which introduces a practical expedient (for all
entities) and an accounting policy election (for non-PBEs that elect the practical
expedient) for estimating credit losses on current accounts receivable and current
contract assets arising from revenue transactions under ASC 606 (see Section 5.2.3).
Further, the SEC and various banking regulators, such as the Federal Reserve Board,
OCC, FDIC, National Credit Union Administration, and Federal Housing Finance Agency,
were involved in the standard-setting process (e.g., through their involvement in
TRG meetings) and have continued to provide guidance on the application of ASC 326.
Stakeholders should continue to monitor activity at the FASB, SEC, and other
standard setters or regulators for any relevant developments or interpretations.