Heads Up

This Heads Up discusses the FASB’s decision to add the following two projects related to crypto assets to its technical agenda at its November 19, 2025, meeting: (1) “[e]xpanding the scope of Subtopic 350-60 to address wrapped tokens and receipt tokens” and (2) “[c]larifying the derecognition guidance for crypto transfer arrangements to assess whether the control of a crypto asset has been transferred.”

This Heads Up discusses FASB Accounting Standards Update (ASU) No. 2025-08, Financial Instruments — Credit Losses (Topic 326): Purchased Loans, which amends the guidance in ASC 326 on the accounting for certain purchased loans. Under the ASU, entities must account for acquired loans (excluding credit cards) that meet certain criteria at acquisition (“purchased seasoned loans”) by recognizing them at their purchase price plus an allowance for expected credit losses (i.e., the so-called gross-up approach). The ASU’s amendments align the accounting for purchased seasoned loans with the treatment of financial assets purchased with more-than-insignificant credit deterioration since origination.

This Heads Up addresses the FASB’s recent tentative decision to add to its technical agenda a project on clarifying whether certain digital assets (e.g., stablecoins) may be classified as cash equivalents.

This Heads Up discusses the FASB’s proposed Accounting Standards Update (ASU) “Initial Measurement of Paid-in-Kind Dividends on Equity-Classified Preferred Stock,” which would amend ASC 505 to add guidance on how an issuer should measure paid-in-kind dividends on equity-classified preferred stock.

This Heads Up discusses FASB Accounting Standards Update (ASU) No. 2025-07, which (1) refines the scope of the guidance on derivatives in ASC 815 and (2) clarifies the guidance on share-based payments from a customer in ASC 606.

This Heads Up discusses FASB Accounting Standards Update (ASU) No. 2025-06, Targeted Improvements to the Accounting for Internal-Use Software. The ASU amends certain aspects of the accounting for and disclosure of software costs under ASC 350-40.