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Goodwill Impairment Testing (ASU 2017-04)
Removes step two – the requirement to perform a hypothetical purchase price allocation when the carrying value of a reporting unit exceeds its fair value – of the goodwill impairment test.
ASU 2019-10 – Deferral of effective dates.
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For SEC filers, excluding smaller reporting companies, tests performed on or after Jan. 1, 2020
For all other PBEs, including smaller reporting companies, tests performed on or after Jan. 1, 2023
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Permitted for interim or annual goodwill impairment tests performed on testing dates on or after Jan. 1, 2017
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Credit Losses
(ASU 2016-13)
Replaces the incurred loss model with the current expected credit loss (CECL) model for financial assets, including trade receivables, debt securities, and loan receivables.
Clarifying standards:
ASU 2018-19 – Clarifies that impairment of operating lease receivables is in the scope of ASC Topic 842, “Leases,” and not the CECL model.
ASU 2019-04 – Provides specific improvements and clarifications to the guidance in Topic 326. Addresses accrued interest, transfers between classifications or categories for loans and debt securities, recoveries, vintage disclosures, and contractual extensions and renewal options.
ASU 2019-05 – Targeted transition relief provides an option to irrevocably elect the fair value option, on an instrument-by-instrument basis, for certain financial assets (excluding held-to-maturity debt securities) previously measured at amortized cost.
ASU 2019-10 – Deferral of effective dates.
ASU 2019-11 – Provides specific improvements and clarifications to the guidance in Topic 326. Addresses expected recoveries for purchased financial assets with credit deterioration, transition relief for troubled debt restructurings, disclosures related to accrued interest receivables, financial assets secured by collateral maintenance provisions, and conforming cross-references to Subtopic 805-20.
ASU 2020-03 – Aligns contractual term to measure expected credit losses for a net investment in a lease to be consistent with the lease term determined under Topic 842. Clarifies that when an entity regains control of financial assets sold, an allowance for credit losses should be recorded.
ASU 2022-02 – Targeted amendments specific to troubled debt restructurings (TDRs) by creditors and vintage disclosure related to gross write-offs. An entity is required to apply the loan and refinancing and restructuring guidance to determine whether a modification results in a new loan or a continuation of an existing loan, rather than applying the recognition and measurement guidance for TDRs. Requires public business entities to disclose current-period gross write-offs by year of origination for financing receivables and net investments in leases within scope of Subtopic 326-20.
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For SEC filers, excluding smaller reporting companies, March 31, 2020
For all other PBEs, including smaller reporting companies, March 31, 2023
For ASU 2019-04, ASU 2019-05, ASU 2019-11, and ASU 2020-03, March 31, 2020, for entities that have adopted ASU 2016-13; otherwise effective dates the same as ASU 2016-13
For ASU 2022-02, March 31, 2023, for entities that have adopted ASU 2016-13; otherwise effective dates the same as ASU 2016-13
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Permitted as of the fiscal years beginning after Dec. 15, 2018, including interim periods within
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Convertible Instruments and Contracts in an Entity’s Own Equity
(ASU 2020-06)
Clarifies the accounting for certain financial instruments with characteristics of liabilities and equity. The amendments reduce number of accounting models for convertible debt instruments and convertible preferred stock. The cash conversion and beneficial conversion feature models were removed. Limiting the accounting models will result in fewer embedded conversion features being separately recognized from the host contract. Improves disclosure requirements for convertible instruments and earnings-per-share guidance. Revises derivatives scope exception guidance to reduce form-over-substance-based accounting conclusions driven by remote contingent events.
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For SEC filers, excluding smaller reporting companies, March 31, 2022
For all other PBEs, including smaller reporting companies, March 31, 2024
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Permitted as of the fiscal years beginning after Dec. 15, 2020.
An entity must adopt the guidance as of the beginning of the fiscal year and not in a subsequent interim.
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Long-Duration Insurance Contracts (ASU 2018-12)
Revises the accounting for life insurance and annuity contracts by eliminating the method of locking in liability assumptions and the premium deficiency test for traditional and limited-payment contracts, among other methodology changes. Requires additional disclosure.
Clarifying standards:
ASU 2019-09 – Deferral of effective dates.
ASU 2020-11 – Deferral of effective dates.
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For SEC filers, excluding smaller reporting companies, March 31, 2023
For all other PBEs, including smaller reporting companies, Dec. 31, 2025 |
Permitted |