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2025

FASB Amends Guidance on the Measurement of Credit Losses for Accounts Receivable and Contract Assets (July 31, 2025)

Heads Up | Volume 32, Issue 8
July 31, 2025
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FASB Amends Guidance on the Measurement of Credit Losses for Accounts Receivable and Contract Assets

Footnotes

1
FASB Accounting Standards Update (ASU) No. 2025-05, Measurement of Credit Losses for Accounts Receivable and Contract Assets.
2
FASB Accounting Standards Codification (ASC) Subtopic 326-20, Financial Instruments — Credit Losses: Measured at Amortized Cost.
3
FASB Accounting Standards Codification Topic 606, Revenue From Contracts With Customers.
4
The proposed ASU on which ASU 2025-05 is based would have limited eligibility for the practical expedient and accounting policy election to private companies and certain not-for-profit entities.