Preface
We are pleased to present the 2025
edition of Current Expected Credit Losses, which provides an overview of the
accounting model for current expected credit losses (CECL) in ASC 326, including
Deloitte’s insights into how to apply that guidance in practice. The FASB has
continued to conduct its postimplementation review of ASC 326 and to propose
revisions to the guidance on credit losses. For instance, the Board has issued
proposed ASUs that would (1) amend the scope of assets subject to the model
for accounting for purchased credit-deteriorated (PCD) assets and (2) introduce a practical expedient and accounting policy
election (see Section 9.2 for more information about the
proposed ASUs).
The 2025 edition reflects guidance codified in ASC 326 as of the date of this
publication. References to U.S. GAAP applicable before the adoption of ASC 326 have
been removed, since ASC 326 became effective for all entities for fiscal years
beginning after December 15, 2023. For a table summarizing substantive changes made
to this Roadmap since the release of the previous edition, see Appendix D.
Be sure to
check out On the Radar
(also available as a stand-alone
publication), which briefly summarizes
emerging issues and trends related to the accounting and
financial reporting topics addressed in the Roadmap.