Background
This resource provides illustrative disclosures and an adoption-screening inventory based on FASB Accounting Standards Updates reviewed through September 15, 2026. It distinguishes future-effective standards from conditional amendments and recently effective guidance relevant to 2026 reporting.
Adapt each example to the entity’s reporting circumstances. Preparers should confirm the update’s applicability and the relevant adoption date. Replace illustrative impact statements with language that reflects management’s supported assessment. Add relevant transition information where appropriate.
Inclusion of an update does not establish that it applies to a particular entity or that disclosure is required. Use the examples together with the applicable accounting and regulatory guidance.
Drafting convention
Paired options follow the order {public business entities}/{entities other than public business entities}.
Effective dates use the same order: {public effective date}/{nonpublic effective date}.
Both date options are shown even when the dates are identical.
Select the applicable options and remove the braces, slash, and unused alternatives.
Where the nonpublic option is {not applicable}, omit that disclosure for a nonpublic entity.
Preparer note
Retain only disclosures relevant to the reporting entity and its adoption status. The closing impact statements are illustrative and should reflect management’s actual assessment. Use “consolidated financial statements” where appropriate. Remove drafting instructions and unused alternatives before publication.
Impact assessment writing framework
Impact not yet assessed or not estimable: “The Company expects to adopt the amendments on [date]. It is evaluating [specific affected accounting area] and has not yet determined the expected financial statement effect or selected a transition method.”
Impact is reasonably estimable: “The Company expects to adopt the amendments on [date] using [method]. Adoption is expected to [describe and quantify the effect], primarily because [entity-specific reason].”
Affects disclosures alone: “The Company expects to adopt the amendments for [reporting period] using [method]. Adoption will expand disclosures concerning [specific subject] and is not expected to change recognized amounts.”
No material effect assessed: “The Company expects to adopt the amendments on [date] using [method]. Based on its assessment of [relevant transactions or balances], adoption is not expected to have a material effect on its [consolidated] financial statements.”
Illustrative Disclosures
ASU 2024-03 and ASU 2025-01, Income Statement Expense Disaggregation
Applicable to public business entities only.
In November 2024, the FASB issued ASU 2024-03, Income Statement - Reporting Comprehensive Income - Expense Disaggregation Disclosures (Subtopic 220-40): Disaggregation of Income Statement Expenses. In January 2025, the FASB issued ASU 2025-01 to clarify the effective date of ASU 2024-03.
The amendments require tabular disaggregation of specified expense categories included within relevant income statement captions. They also require disclosure of total selling expenses and, annually, the Company’s definition of selling expenses. The amendments expand financial statement disclosures without changing expense recognition or measurement.
The amendments are effective for annual reporting periods beginning after {December 15, 2026}/{not applicable}, and interim reporting periods within annual reporting periods beginning after {December 15, 2027}/{not applicable}. Early adoption is permitted.
The Company is currently evaluating the impact of adopting the amendments on its financial statement disclosures.
ASU 2025-03, Accounting Acquirer in the Acquisition of a Variable Interest Entity
In May 2025, the FASB issued ASU 2025-03, Business Combinations (Topic 805) and Consolidation (Topic 810): Determining the Accounting Acquirer in the Acquisition of a Variable Interest Entity.
The amendments change the identification of the accounting acquirer in business combinations effected primarily through an exchange of equity interests when the legal acquiree is a variable interest entity that meets the definition of a business. For these transactions, the accounting acquirer is determined using the applicable Topic 805 factors rather than automatically identifying the VIE’s primary beneficiary as the accounting acquirer.
For {public business entities}/{entities other than public business entities}, the amendments are effective for annual reporting periods beginning after {December 15, 2026}/{December 15, 2026}, including interim periods within those annual reporting periods. Early adoption is permitted.
The Company is currently evaluating the impact of adopting the amendments on its financial statements.
ASU 2025-04, Share-Based Consideration Payable to a Customer
In May 2025, the FASB issued ASU 2025-04, Compensation - Stock Compensation (Topic 718) and Revenue from Contracts with Customers (Topic 606): Clarifications to Share-Based Consideration Payable to a Customer.
The amendments clarify that specified customer purchase targets are performance conditions when accounting for share-based consideration payable to a customer. They require estimated forfeitures for awards containing service conditions. They also clarify that Topic 606’s variable-consideration constraint does not apply to share-based consideration payable to a customer that is measured under Topic 718.
For {public business entities}/{entities other than public business entities}, the amendments are effective for annual reporting periods beginning after {December 15, 2026}/{December 15, 2026}, including interim periods within those annual reporting periods. Early adoption is permitted.
The Company is currently evaluating the impact of adopting the amendments on its financial statements.
ASU 2025-06, Internal-Use Software
In September 2025, the FASB issued ASU 2025-06, Intangibles - Goodwill and Other - Internal-Use Software (Subtopic 350-40): Targeted Improvements to the Accounting for Internal-Use Software.
The amendments remove references to sequential software-development stages from the capitalization guidance. Capitalization begins when management has authorized and committed funding and completion and intended use are probable, subject to an assessment of significant development uncertainty. The amendments also align disclosures for capitalized internal-use software costs with the applicable Topic 360 requirements.
For {public business entities}/{entities other than public business entities}, the amendments are effective for annual reporting periods beginning after {December 15, 2027}/{December 15, 2027}, including interim periods within those annual reporting periods. Early adoption is permitted.
The Company is currently evaluating the impact of adopting the amendments on its financial statements.
ASU 2025-07, Derivatives Scope and Share-Based Noncash Consideration
In September 2025, the FASB issued ASU 2025-07, Derivatives and Hedging (Topic 815) and Revenue from Contracts with Customers (Topic 606): Derivatives Scope Refinements and Scope Clarification for Share-Based Noncash Consideration from a Customer in a Revenue Contract.
The amendments introduce a derivative scope exception for certain nonexchange-traded contracts whose underlyings are based on a party’s operations or activities, subject to specified exclusions. They also clarify that Topic 606 applies to share-based noncash consideration received from a customer until the entity’s right to receive or retain that consideration becomes unconditional.
For {public business entities}/{entities other than public business entities}, the amendments are effective for annual reporting periods beginning after {December 15, 2026}/{December 15, 2026}, including interim periods within those annual reporting periods. Early adoption is permitted.
The Company is currently evaluating the impact of adopting the amendments on its financial statements.
ASU 2025-08, Purchased Loans
In November 2025, the FASB issued ASU 2025-08, Financial Instruments - Credit Losses (Topic 326): Purchased Loans.
The amendments extend the gross-up approach for the initial credit-loss allowance to qualifying purchased seasoned loans. Eligible loans acquired in a business combination are treated as seasoned. Other purchased loans must satisfy the seasoning criteria, including acquisition at least 90 days after origination without the acquirer’s involvement in origination. The expanded approach excludes credit cards, debt securities, and Topic 606 trade receivables.
For {public business entities}/{entities other than public business entities}, the amendments are effective for annual reporting periods beginning after {December 15, 2026}/{December 15, 2026}, including interim periods within those annual reporting periods. Early adoption is permitted.
The Company is currently evaluating the impact of adopting the amendments on its financial statements.
ASU 2025-09, Hedge Accounting Improvements
In November 2025, the FASB issued ASU 2025-09, Derivatives and Hedging (Topic 815): Hedge Accounting Improvements.
The amendments revise the criteria for grouping forecasted transactions in cash flow hedges by permitting an assessment based on similar risk exposures. They also make targeted changes to eligible hedged risks and hedging instruments. Specified transition elections permit changes to certain existing hedging relationships without dedesignation.
For {public business entities}/{entities other than public business entities}, the amendments are effective for annual reporting periods beginning after {December 15, 2026}/{December 15, 2027}, including interim periods within those annual reporting periods. Early adoption is permitted.
The Company is currently evaluating the impact of adopting the amendments on its financial statements.
ASU 2025-10, Government Grants
In December 2025, the FASB issued ASU 2025-10, Government Grants (Topic 832): Accounting for Government Grants Received by Business Entities.
The amendments establish accounting requirements for government grants received by business entities. Grant recognition requires that receipt of the grant and compliance with its conditions are probable. The guidance distinguishes grants related to assets from grants related to income and specifies their subsequent accounting and presentation.
For {public business entities}/{business entities other than public business entities}, the amendments are effective for annual reporting periods beginning after {December 15, 2028}/{December 15, 2029}, including interim periods within those annual reporting periods. Early adoption is permitted.
The Company is currently evaluating the impact of adopting the amendments on its financial statements.
ASU 2025-11, Interim Reporting
In December 2025, the FASB issued ASU 2025-11, Interim Reporting (Topic 270): Narrow-Scope Improvements.
The amendments clarify Topic 270's applicability and organize existing interim disclosure requirements. They also establish a disclosure principle for material events and changes since the latest annual reporting period. The amendments apply when an entity presents interim financial statements and notes under US GAAP. They do not require an entity to begin issuing interim financial statements.
For {public business entities}/{entities other than public business entities}, the amendments are effective for interim reporting periods within annual reporting periods beginning after {December 15, 2027}/{December 15, 2028}. Early adoption is permitted.
The Company is currently evaluating the impact of adopting the amendments on its interim financial statement disclosures.
ASU 2025-12, Codification Improvements
In December 2025, the FASB issued ASU 2025-12, Codification Improvements.
The amendments make technical corrections, clarifications, and other improvements to various provisions of the FASB Accounting Standards Codification.
For {public business entities}/{entities other than public business entities}, the amendments are effective for annual reporting periods beginning after {December 15, 2026}/{December 15, 2026}, including interim periods within those annual reporting periods. Early adoption is permitted.
The Company is evaluating the amendments applicable to its operations and the impact of adopting them on its financial statements.
ASU 2026-01, Paid-in-Kind Dividends on Preferred Stock
In April 2026, the FASB issued ASU 2026-01, Equity (Topic 505): Initial Measurement of Paid-in-Kind Dividends on Equity-Classified Preferred Stock.
The amendments require paid-in-kind dividends on equity-classified preferred stock to be initially measured using the dividend rate specified in the preferred stock agreement and the contractual amount to which that rate applies. The amendments address initial measurement and do not change when the dividend is recognized.
For {public business entities}/{entities other than public business entities}, the amendments are effective for annual reporting periods beginning after {December 15, 2026}/{December 15, 2026}, including interim periods within those annual reporting periods. Early adoption is permitted.
The Company is currently evaluating the impact of adopting the amendments on its financial statements.
ASU 2026-02, Environmental Credit Obligations
In May 2026, the FASB issued ASU 2026-02, Environmental Credits and Environmental Credit Obligations (Topic 818).
The amendments establish accounting for environmental credits based on their intended use and for obligations arising under environmental compliance programs. They specify when credits qualify for asset recognition and how to measure related compliance liabilities. Costs of credits that do not meet the asset-recognition criteria are expensed.
For {public business entities}/{entities other than public business entities}, the amendments are effective for annual reporting periods beginning after {December 15, 2027}/{December 15, 2028}, including interim periods within those annual reporting periods. Early adoption is permitted.
The Company is currently evaluating the impact of adopting the amendments on its financial statements.
ASU 2026-03, Investment Companies: Equity Securities Subject to Contractual Sale Restrictions
In September 2026, the FASB issued ASU 2026-03, Fair Value Measurement (Topic 820): Investment Companies with Equity Securities Subject to Contractual Sale Restrictions.
The amendments require investment companies within Topic 946 to consider contractual sale restrictions when measuring the fair value of affected equity securities and to disclose the related discount.
For {public business entities}/{entities other than public business entities}, the amendments are effective for annual reporting periods beginning after {December 15, 2027}/{December 15, 2027}, including interim periods within those annual reporting periods. Early adoption is permitted on or after September 9, 2026. The amendments are applied prospectively to all equity securities, with adoption adjustments recognized in current-period earnings.