The Financial Accounting Standards Board (
FASB) has released for public review and comment proposed GAAP Taxonomy Improvements for the proposed Accounting Standards Update (ASU) on Topic 326
, Measurement of Credit Losses for Accounts Receivable and Contract Assets for Private Companies and Certain Not-for-Profit Entities.
The proposed ASU on credit losses is intended to:
- treat the challenges faced when applying the guidance to Topic 326 to current accounts receivable and current contract assets arising from transactions accounted for under Topic 606, Revenue from Contracts with Customers
- implement a practical and efficient accounting policy election for private companies and certain non-profit entities related to the application of Subtopic 326-20, Financial Instruments—Credit Losses—Measured at Amortized Cost, to current accounts receivable and current contract assets arising from transactions accounted for under Topic 606
Interested parties may visit fasb.org to review the ASU on credit losses and submit comments via email to xbrled@fasb.org through January 17, 2025. Please include the appropriate File Reference Number “2024-ED900” as the subject.
Source:
FASB Staff Issues Proposed GAAP Taxonomy Improvements for Proposed Update on Measurement of Credit Losses for Accounts Receivable and Contract Assets for Private Companies and Certain Not-For-Profit Entities (fasb.org)
